Introduction
Today’s column wraps-up my discussion of Guidepost 4, in Part 2 of Guyana’s Petroleum Road Map. This Guidepost evaluates opportunities for increased downstream value added to Guyana’s crude petroleum finds. The premise of the analysis is that such value added would promote diversification of Guyana’s crude into other petroleum-based products, thereby adding sources of foreign exchange, public revenues, GDP growth, and employment creation.
Over the two previous columns, I had advanced two Decision Rules, which are intended to guide State action in this area. The first Rule proffered the view that, if a privately owned, managed, and controlled refinery is established, the State should support this endeavor, subject to the proviso/ caveat that the operation of the refinery is wholly predicated on commercial criteria. No explicit or implicit protection, especially under the guise of “local content,” should be afforded the private venture, through State facilitation in any form or manner.