September 19, 2018 issue | |
Opinions |
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Babes in the Woods |
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Readers are aware that Exxon-Mobil (EM) and Hess have found oil in commercial quantities 120 miles off-shore Guyana. Crude production will start in 2020, at first 120,000 barrels per day (for perspective, the world consumes 80,000,000 barrels daily, the US 20 million!) The price will depend on the composition of that crude; I have not yet seen what this is, and therefore what can be expected at various levels of distillation. It is wrong to assume that the price will be that which is published in Commodity news. The position of the Guyana Government in this seems rather |
fuzzy, at a “Babes in the Woods” level, judging from the public statements of Ministers, and President Granger even, who admitted that he has not yet read the EM-Guyana agreement and that he trusts EM not to do anything untoward! But no informative papers published to give details of the finds, other than where and how much; and no mention of audits. The President also said that Guyana will determine the pace of EM’s developments in the Stabroek Block, but one doubts whether EM has agreed to that. Whatever the final tally of oil reserves offshore, it is a small percentage of global reserves, but it is large in relation to the country’s population of less than 800,000, of whom less than 20,000 control the way things go; 1% of these constitute the elite, about the same when the PPP ruled, so no hope of better things there; anyway, their days seem over, as there is every likelihood of an APNU win next elections (following past PNC strategy); the AFC will be gone, like the UF in 1967. The smartest minds in APNU must even now be planning a “legal” win by redrawing constituency boundaries, as was done in 1957; it failed then because the PPP had an absolute majority. Guyana is a novice where big business is concerned, with no exposure to the petroleum industry; the oil reserves are putty in the hands of oil giants, whose data are all that Granger and company have. ExxonMobil is both miner (active in 28 countries), and refiner, the world’s largest with 37 refineries in 21 countries, refining 6.3 million barrels daily, and doing as they please, as George Bush told India’s Vajpayee in 2004, “those guys listen to no one”. Forty years ago, Burnham trashed companies, nationalised those that resisted, and exiled nearly all potential entrepreneurs – a favour to them really, as many have done extremely well in the few decades since they migrated. The discovery of oil has awakened American vultures to the new sources of flesh, with first-of-a-kind visits by congressmen to Guyana and Suriname, pouncing on them like carrion crows, and meeting secretly with Government officials. Most Americans, even the university-educated, don’t know where Guyana is, and proudly display this ignorance in talking of it as if it were Guinea, or Ghana or New Guinea. It is sickening to read the comments following articles on the Guyana oil in the NY Times, Wall St Journal etc. Though they are often wrong, Americans rightly compare the likely fate of Guyanese with examples from New Guinea, Nigeria, Chad, and Equatorial Guinea, all “blessed” with oil – (note that in French ‘blessé’ means ‘wounded’). In these countries, Exxon, or its predecessor Esso, had a key role, and has been sued for shady deals in several places. Among the infamous ones was the direct deposit of oil revenue, during Rex Tillerson’s reign, into a personal US account belonging to Teodoro Obiang, President of Equatorial Guinea (EG) which his son Teodorin used to buy a luxury home in California and several very expensive sports cars. Exxon’s defence was that they were given that account number as the government’s. Meanwhile, 25 years after the oil find, despite a GDP of $38,000 per capita, 45% of people are below the poverty line, and denied education, basic health care and immunisations. Teodorin was handed a 3-year suspended sentence in France for money laundering, and today (Sept 16) Brazil detained him and a delegation for undeclared $16M! Many have questioned the nature of Guyana’s agreement with EM, asserting that Guyana has been short-changed, but one must be cautious. In an instant, US Marines can take over and re-write Guyana’s constitution, permitting American ownership of Guyanese assets and property, as they did in Haiti in 1915, guaranteeing its everlasting poverty. “We will suffer from that contract for the next 75 years,” said Christopher Ram, Guyanese advocate and accountant. |
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Spare the fishing rod, spoil the child |
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It was a remarkable flashback, the moment hanging in the air the way lightning sears an image in the eye so it resonates inside the timelessness occupying the space between the flash and approaching thunder. I stood entranced inside the moment, transfixed by the crack in the firmament brought by this unpredicted leap of imagination. |
the door as it swung open; then the stranger walked away, carrying the bamboo rod on the shoulder so it did not appear to be a walking-stick, or a cane, but was like a fishing pole. Both the bamboo pole and its stranger then headed into the carpark. In the distance, above a windbreak line of oak trees, the city line rose upwards, its towering buildings looking down with its white, judicial wigs of clouds; just beyond man and pole, vehicles buzzed endlessly and non-stop, whizzing by on the constant of a four-lane roadway. |
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