Dr Clive Thomas

Introduction While as indicated last week, over the years Production Sharing Agreements, PSAs, have given rise to well documented generic critiques of their processes, as hinted towards the end of that column, they have also proved to be from the very outset dynamic and even disruptive, as a novel social construct, to the then ruling order of transnational crude oil exploration, development, production, and marketing legal contracts.

Introduction As readers are aware, I usually indicate well beforehand the topics I intend to address over an extended period, going forward.

Introduction Four weeks ago, I had substituted my scheduled re-visit of the Buxton Proposal and its recommendations, for a more comprehensive appraisal of the premier position, which I have accorded to the goal of poverty reduction in the spending of Guyana’s expected windfall petroleum revenues and earnings.

Introduction Last week’s column used the World Bank’s systematic country diagnostic, SCD, of Guyana, to unravel the embedded obstacles to the country’s lack of inclusive development along with the grim persistence of poverty up to the advent of its windfall oil finds in 2015.

Introduction Two  remarkable reports on Guyana were separately published by two leading international organizations towards the end of the first year of Guyana’s First Oil.

Introduction The list of topics that I had proposed some weeks ago indicating what I intended to revisit going forward, along with an updating of my recommendations on these, identifies the Buxton Proposal as being the next topic.

Introduction Last week’s column asserted that, logically, any serious critique of Guyana’s Natural Resource Fund, NRF, ought to be pursued at two hierarchical levels of abstraction.

Introduction In today’s column I wrap- up last week’s presentation dealing with the economic rationale behind the creation of a state-owned NRF or SWF to be used for effective regulation of the anticipated medium-term boom in oil revenues and the efficient spending of same revenues.

Today’s column starts my revisit of the Guyana Natural Resource Fund, NRF, alternatively termed Sovereign Wealth Fund, SWF.

Introduction Today’s  column re-visits my original advisement on local content requirements.

Introduction OPEC It is not my purpose here and now to repeat the several earlier assessments of OPEC I have made since the start of this series on Guyana’s emerging oil and gas sector back in 2016, save and except to recall that OPEC is an inter-governmental body, which has declared its primary goal as the coordination and unification of its members’ petroleum policies.

Introduction Today’s column and next week’s will address the first of six broad strategic policy choices or actions that I propose the Authorities satisfy before the mid-2020s.

Introduction Following several comments and queries sent by readers I  have come to the realization that, perhaps due to the length of the present series and complementing that, the irregularity  of some readers of the columns, not surprisingly some of the readers have lost track of the sequence of the treatment on which I am presently proceeding.

Introduction Today’s column wraps-up my highlighting of the role of governance of Guyana’s  emerging oil and gas sector as an indicator of its prevailing condition.

Introduction Today’s column begins with my wrap-up of last week’s column.

Introduction Today’s column has two aims. First, wrapping  up my appraisal of the TIGI’s assertion that granting licences for 317 blocks, instead of 60 blocks, as the PSA requires, has had catastrophic domino consequences for Guyana’s emerging oil and gas  sector.

Introduction Thus far I have considered four of the ten sample indicators, which I had earlier advanced can provide an adequate profile of the present condition of Guyana’s emergent oil and gas sector: namely 1) existential threats, Venezuelan territorial aggression and environmental catastrophe; 2) modelled cost shares for crude oil production; 3) oil price projection; and 4) the World Bank’s call on Guyana’s boom cycle. 

Introduction Today’s column presents brief commentary on three topics; namely, 1] the estimated break-even prices for Guyana’s  crude 2]  likely Brent crude oil  price going forward, and 3] the World Bank’s prediction of  a Guyana “boom cycle” going forward. 

Introduction Today’s column continues the coverage of my linking of the theoretical analysis; that is Pillars A B  completed so far and policy formulation for the sector, to come.

Introduction This week’s column and the ones immediately following are devoted to linking the two areas into which I have codified  my presentation thus far.