Introduction
My long-standing recommendation to establish a National Oil Company, NOC, intentionally rejects the notion of linking this policy recommendation with the establishment of a state-owned (or joint venture, state-private) downstream “oil refinery”. This rejection also applies to the much touted “mini-oil refinery” that was once very popular in local circles. I have developed my arguments in support of this recommendation in a score of previous columns (May 28, 2017 to October 29, 2017); and will not repeat here.
I also reject the IMF proposal that Guyana establish a State-owned Holding Company. This is because, as conceived by the IMF, such a company is restricted to financial interests, with limited involvement in operational decision making. I am somewhat sympathetic with recommendations to establish a National Energy Company, as distinct from a NOC. On this matter, readers would recall that the establishment of an Energy Ministry or Agency, along with the Buxton Proposal for cash transfers, have been my two leading recommendations, for spending Guyana’s expected windfall earnings from its oil discoveries.