June 5, 2019 issue

Readers' Response

Guyana needs to stop fantasizing about oil wealth and find a leader to put nation above personal power

Dear Editor:
I would like to thank everybody who read and responded to my article `First oil or fool’s gold – Guyana’s proposed oil venture and the global economy’ in the May 19th Sunday Stabroek.
Some disagree and say Guyana will get plenty money. Some say ‘renegotiate’.
The money argument assumes that Guyana will get 12.5% of production. That is impossible. Out of every 100 barrels of production Esso Exploration and Production Guyana Ltd, Hess Guyana Exploration Ltd and CNOOC Nexen Petroleum Guyana Ltd can take as much free oil as they ‘reasonably require’ for their petroleum operations going back to 1999. There is no limit. Guyana cannot verify how much oil is produced or what the oil companies take.
That leaves less than 100 barrels. The oil companies take 75% of that for their “expenses.” They pay nothing. It’s free. (Note that they can carry forward the excess every month until they recover all their “expenses” which already run to billions of US dollars.) They take 50% of the remaining barrels for free. Guyana gets whatever is left. It is simple arithmetic that Guyana will always get less than 12.5% of actual production. Guyana then has to pay somebody to sell that oil. Billions of dollars’ worth of free oil will help the oil companies to survive a bit longer in a hostile diminishing market, but this deal does not benefit Guyana.
Renegotiating for more is not an option. With great respect for Jan Mangal’s experience as an engineer at Chevron and as the former Presidential Advisor on Petroleum, I point out that oil executives are not running charities. Oil companies exist to make profit. Lots of it. No oil company will reduce profit just because some people in a tiny host country say “renegotiate”. (Imagine shareholder reaction!) Plus, Guyana has no power to force the oil companies into genuine renegotiation. The only democratic option left is for courageous citizens to uphold the rule of law and challenge illegal action in Guyana’s petroleum sector.
Fantasizing about oil wealth leaves Guyana wholly unprepared for the double catastrophes of biodiversity collapse and climate change. It also stops Guyana from adapting to the economic realities of the new world. The Seychelles get money to conserve marine biodiversity. So could Guyana. Belize has banned all off-shore oil drilling and gets money from marine tourism and research. So could Guyana. Costa Rica generates 98% of its electricity from renewables. So could Guyana. All Guyana needs is one political leader who will put country above party, power and personal enrichment.
Melinda Janki via email

 
Guyana more divided than ever,
worse anticipated

Dear Editor:
As Guyana celebrated its 53rd anniversary of independence on May 26, the country is more divided than ever. Instead of the gap between the two major parties being reduced, it is getting wider, and it is anticipated that it will get worse with the billions of dollars in oil wealth on the horizon.
The politicians from the political parties are eyeing the windfall. There is already concern about the US$18 million paid by the oil explorers ExxonMobil, and the agreement signed by the Guyana Government and the giant oil company, more so with the likelihood that the May 2020 elections will be held earlier, in light of the no confidence motion and other concerns. What emerged from the Charrandass Persaud motion is that there were several lawmakers with dual citizenships from both political parties. This, to a certain extent, has been corrected.
Are Guyanese proud of their nationhood? I would answer this question in the affirmative, but the country needs to heal – Guyanese, especially the politicians, have to set aside their differences and work together. The racial strife, which is the root of the problem, must be eradicated at all costs.
The PNC was in government for a total of 28 years and the PPP for 23. When Forbes Burnham was at the helm, he made some radical decisions – banning basic food items, and abolishing appeals to the Privy Council, even though there was no regional appellate court and the Guyana Court of Appeal was the final court for 36 years until the Caribbean Court of Justice (CCJ) was inaugurated in 2005. Burnham was more of a regionalist and was in the forefront of Caribbean integration. He was one of the main players in the establishment of CARIFTA, later CARICOM (the Caribbean Community) and do not forget he was the main player in CARIFESTA – the regional festival of arts and culture.
Guyana gained independence on May 26, 1966, after Jamaica and Trinidad and Tobago. The British delayed independence because they wanted Cheddi Jagan, who was then Chief Minister and later Premier, to change his leftist views, but he was adamant with his meeting with US President JF Kennedy, and shortly after, showed to the world that he was in the Russian camp when he went to Cuba and embraced Fidel Castro.
This was the biggest mistake, not only for Jagan, but for the then British Guiana, because the British Government changed the electoral system from First Past the Post to Proportional Representation (PR), which made it extremely difficult for the PPP to gain more than 50% of the votes. This paved the way for Burnham to merge with the small right wing party, the United Force, to form the government in 1964 and two years later, independence was given. But after Burnham got into power, he did what he wanted. The party (PNC) was supreme; the government was merely an arm of the PNC. The party’s flag was flown over the courts.
After the death of Burnham in August, 1985, Desmond Hoyte took over. He was more to the middle and agreed with former US President Jimmy Carter to make some electoral changes, and as a result, Cheddi Jagan, after 28 years in the wilderness, in 1992 was sworn in as President.
But Cheddi did not change the “Burnham” Constitution which he had severely criticized. The PPP carried on merrily until the death of Dr Jagan. His widow, Janet, replaced the “holding” President Sam Hinds, but she resigned shortly after and handpicked young, Russian-trained Bharrat Jagdeo to be her successor. He, in a short time became wealthy and arrogant, so much so that he rebuked Janet. He became very unpopular after he fired a few top supporters, who along with other dissatisfied persons from the PNC, formed the AFC, which gained support from dissatisfied persons in and out of Guyana. As a result, the AFC became popular in a short time, and merged with APNU (PNC) to form the government in 2015.
Most of the AFC financial support came from the diaspora, but it seems as if the AFC failed to deliver and as a result, it will not get the support as it did four years ago.
It will be interesting to see how the next general elections will unfold. A large number of the PPP supporters are not at all pleased with Irfaan Ali, who they claim was handpicked by Jagdeo to be the presidential candidate, and might abstain at the next general elections, whenever it is called.
On the other hand, AFC will not get a quarter of the support it won the last time around.
APNU will need to get some “outside” votes to push it over the line. Can Granger, Harmon and other top flight members convince the Amerindian voters to support APNU? This will be the key.
Best wishes to the Co-operative Republic on its 53rd anniversary of nationhood. Let there be peace, harmony and racial unity, I pray. Remember unity is strength – divided we fall.
Oscar Ramjeet via email

 
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