When one takes a careful look at the economics regarding the development and monetization of the oil offshore Guyana, it is clear that the country is going to change beyond recognition says British High Commissioner, Greg Quinn.
Getting into the specifics of his perspective during a recent webinar held by Canning House, the official noted that there have been 21 wells drilled offshore Guyana and 19 have been deemed a success. The reserves so far total over eight billion barrels of oil equivalent resources. Quinn noted that three of those 19 wells have come up with heavy or medium oil and may not be developed due to current market prices.
Further to this, the official was keen to point out that at the minute, Guyana is classified as a lower middle income country with a Gross Domestic Product (GDP) this year of about US$5250. Next year, he notes that this will go up to about US$10,990. It therefore means that Guyana’s GDP is going to more than double. In fact, Quinn said that in the global ranking, it will take Guyana from the 98th position to 66th next year. “So what does that mean? In short, it means a wealthier economy, more affluent consumers, more opportunities across a wide variety of areas…” the High Commissioner added.
On this note, he categorically stated that oil will certainly provide the money Guyana needs to ensure there is a social support network, while noting that the people will ultimately want to see more jobs being created and more local investment. To ensure this occurs, he stressed that there must be efforts directed towards expanding skills outside of oil and gas industry.
The High Commissioner posited, “The nation needs skills that are transferrable across industries. It cannot be focused on oil and gas alone. The important point is that the money will remain in Guyana and that is the position of any government that comes in, any government will demand to see the benefits are for the people.”
Quinn said too that attention must also be paid to helping Guyanese businesses and helping the wider Guyanese economy as a whole.
