| By Abena RockcliffeUnited States Ambassador, Perry Holloway has indicated that falling oil prices on the world marketUS Ambassador to Guyana, Perry Hollowaystand to benefit Guyana immensely.Oil is currently being sold for a little above US$30 per barrel. The price for oil has been falling for quite some time and continues to do so rapidly. In November 2015 oil was being sold at U$50 per barrel.While reports on the international stage are that the maintained reduction in oil is putting a strain on the economy of many countries and is essentially causing international turmoil, Holloway is saying that Guyana can actually be grateful.He offered this opinion during a recent interview with Kaieteur News at the American Embassy.The Ambassador said that falling oil prices mean that the companies currently exploring in Guyana can cut back on exploration investments and will most likely get on with the work faster.Holloway explained that the prices for the equipment as well as the cost attached to experts needed to explore have become “dirt cheap.”The envoy told Kaieteur News that a rig that is being brought to Guyana “very soon” to drill assessment wells is being procured at a price less than half of what it was being sold for a year or two ago.“All these unemployed petroleum engineers,http://www.theworldsoccersshop.com/Cruz-Azul-Guillermo-Allison-Jersey.html, the geologists, and all these other experts are going to come here for a better price. The downturn in prices is actually beneficial to Guyana. You are not going to be pumping oil for a number of years, so right now the lowered prices are very beneficial and the find is so far very significant.”As for how it will be when Guyana actually starts pumping oil, the Ambassador said that the country should still have no fears.“If you live as long as I have,Brad Kaaya Jersey, you would know that oil prices come down,http://www.theworldsoccersshop.com/Club-America-Aguilas-Jonathan-Sanchez-Jersey.html, but they always go back up. Guyana depends on over 99 per cent of its electricity from diesel power generators. So imagine a Guyana that is producing petroleum. It will be really good for Guyana.”Holloway said that the country will, in the beginning,Joe Mixon Jersey, have to send its petroleum to be refined elsewhere, but eventually it will be able to afford its own refinery.The Ambassador said that the discovery of “high quality petroleum is likely to be much more significant than most people realize”.He added, “I think people don’t want to have their hopes dashed,Fernando Valenzuela Jersey, so they are reluctant to believe… they are reluctant to think about it or accept it,Kari Lehtonen Jersey, but the find is by no means insignificant.”The envoy opined that Guyana’s oil is capable of transforming the country.“In 10 years Guyana will be a different place,Darlington Nagbe Jersey, hopefully for the better.”Holloway pointed out that rapid economic growth and extreme dependency on one commodity often bring its own set of challenges. Luckily for Guyana,Gerard Pique Barcelona Jersey, Holloway said, the country is benefitting from international guidance. He indicated that quite a few international bodies are working with Guyana on the development of measures that will help to eliminate or control the risk factors.As regards those measures, Holloway pointed to the Sovereign Wealth Fund as well as some other transparency and anti-corruption initiatives. A Sovereign Wealth Fund is a government-owned investment fund. It has been set up by many countries with oil wealth and there are models to choose from.Holloway said that Guyana will choose its own model after it benefits from expert advice about the pros and cons of each model. He indicated that Canada has taken the lead in helping Guyana with the setting up of the Sovereign Wealth Fund.However, he emphasised that the US continues to do its part. He said that in its dealing with the Ministry of National Resources and the subject Minister, Raphael Trotman,Houston Astros Josh Reddick Jersey, the US has brought in quite a few experts that are looking into transparency, management of petroleum and management of environment.“These guys know lots about the Sovereign Wealth Fund and they share expertise and knowledge.”The Ambassador said that Guyana needs to set up the requisite policies as “there is going to be a gigantic change once petroleum starts coming out of the ground.” |
