The Private Sector Commission (PSC) would like all Guyanese to balance the not insignificant revenues and concomitant development made possible by ExxonMobil’s production of oil with the need to adequately protect the environment in the ongoing EPA issue.
In a release yesterday, the PSC expressed its “profound” concern over the controversy brought to life by the recent judgment handed down by Justice Sandil Kissoon in the Collins & Whyte vs The Environmental Protection Agency (EPA) matter. It noted that the case has generated considerable public discussion with regard to the Financial Assurance Obligation of ExxonMobil stipulated in its environmental permit for the Liza Phase One project, in what the Commission says is “the highly unlikely event of an oil spill.”
The PSC, while acknowledging that it and others such as the government and ExxonMobil are bound by the fact that the case is sub judice and limits their utterances, feels that it is “considerably significant to the very future of our country,” that all understand the possible consequences of the court’s judgment. So much so that reference was made to the Attorney General, Anil Nandlall, who the Commission said, thought it fit to underscore this point by stating that “the Government’s developmental agenda is inexplicably bound to the revenues and economic activities generated from and by the oil and gas sector.” Nandlall also reminded that “local, as well as foreign investment in this industry, is immeasurable. Job creation opportunities are unprecedented and the spin-offs from this sector into every area of national endeavor are easily recognizable.”
As such, the PSC stated that it is looking forward to the clarification of the legal issues at stake with a view to producing an amicable resolution.
However, while the country waits for this to come about, the PSC wants all of Guyana “to give serious thought and reflection to where our country is today in terms of the significant infrastructure and transformative developments which have already taken place and their impact on each and every one of our lives and where our country was before the discovery and production by Exxon of our oil and gas.”
The Commission highlighted in dollar terms what is at stake here which it termed as “quite extraordinary” for a country of less than one million people. Noted was the US$20 billion invested in the Stabroek Block with committed investments amounting to some US$45 billion, which are projected to exceed some US$200 billion over the lifetime of the project.
It was pointed out that this direct influx of massive amounts of capital investment and foreign investment has led to the unprecedented demand of unskilled, skilled and technical labour resulting in significant increases in salaries in the private sector alone. The example was given of an unskilled labourer who earned $3,000 to $4,000 per day some four years ago, while today, that same labourer earns between $8,000 and $10,000. This significant increase in wages, it noted, is replete in all spheres of employment across Guyana as a result of the oil & gas sector.
Also highlighted are the “thousands” of small and medium scale businesses that have been created/developed in Guyana over the past few years and are finally gaining a foothold in a thriving and dynamic economy, as well as the substantial road and bridge capital works of highways extending across the country, opening up the massive potential for agricultural and mining development and transportation of goods and services.
As such, the commission views it as “inconceivable” that any “sensible” Guyanese would consider reversing this “massive” progress, however, it did acknowledge every “sensible” Guyanese must also consider the absolute need to also sustain and protect the environment and guard against the “unlikely and highly improbable” event of an oil spill and its consequential fallout.
The PSC also stated that it is pleased to recognise that the government is already well advanced in meeting this challenge in its approach to ExxonMobil. It has noted the administration’s confirmation that it is actively involved, through the EPA, in the process of determining that ExxonMobil Guyana and its Stabroek Block partners are, first, technologically committed to the prevention of a major accident of any kind occurring and have agreed to seek affiliate guarantees and provide financial resources committed to meeting their obligations, should there be such an occurrence.
According to the release, the PSC is “reassured,” and Guyana should be as well, by the commitment made by the President of ExxonMobil Guyana, Alistair Routledge, at the May 19 press conference, that ExxonMobil is prepared “at any time to do the right thing.”
The Private Sector Commission added that it believes and supports the fact that “significant strides and attention is being paid by all stakeholders in Guyana to ensure continuous and sustainable development. The Private Sector Commission will continue to advocate for national development in an environmentally safe manner, which benefits all Guyanese throughout the length and breadth of Guyana. Guyana’s oil & gas industry is the vehicle which promises to take us to that realisation.”
