Dear Editor,
When the news highlights the slow reaction of the Ministry towards the testing of the virus and the lack of hedging in the oil market it becomes clear that there is a problem. Humility in those who are in power and leadership allows for them to be more open to the advice of others. Being receptive to that which makes sense and maintaining an awareness of what is happening in the world around us helps us make better decisions.
In April of 2018 close to the peak of recent oil prices I suggested that a hedge be taken for the oil price. If this was done a US$75 price could have been secured. Once again, I did so even more recently in February of this year yet the decision was made to not hedge. In addition, I had contacted Wood Mackenzie and provided them with the bid information for marketing of the oil so as to help Guyana maintain a solid financial footing. There is no reason when knowing the marcroeconomic situation with the US-China trade war and the onset of a global pandemic that such a poor decision should be taken to not hedge on price. Especially when the contract has a price floor of approximately US$50 a gallon. If the decision makers think they have all the answers and that others with more experience and qualifications are of no use them then the future of the country will not be as strong as it could be. It should also be noted that I made a similar suggestion in a private setting to a decision maker concerning the price of sugar.
In addition, when we look at the testing for the virus, many have said that we needed more kits. I took the time to provide the information on where affordable and faster testing kits may be provided and how best to procure them quickly, yet sloth and what appears to be an arrogant attitude has prevented a quick response. This information was provided on April 2nd. Those test kits could have already been here.
No leader who does not safeguard the lives and the financial strength of those that they lead will be allowed to endure over the long term, especially in a democratic society. This Nation cannot afford such flagrantly irresponsible and inexperienced leadership. Therefore, going forward I suggest that those who are becoming more of an obstacle than a benefit to this country either lose their arrogant attitude and listen or demit office and let those who care to do what’s best have an opportunity to make better the lives of our people.
Going forward it would be best to store the oil and wait for a better price than to sell it. As for the test kits, I suggest that those be purchased ASAP. If buying from India is an issue then it’s time to get over any personal biases. They are our trading partners.
P.S. Do not forget to hedge the oil price when a good opportunity to do so presents itself.
Yours faithfully,
Jamil Changlee
Chairman
The Cooperative Republicans of Guyana
