Hugh Howard, attorney-at-law and former executive at Shell and Trintoc, believes the discovery of large oil reserves in Guyana earlier this year could be a positive development for T&T’s industry.
“T&T has had experience in the energy industry that spans over 100 years. Guyana, a country without that kind of background, will be looking for assistance like technical expertise from other countries. What better place than from the sister Caricom country of T&T?
“In addition, T&T cannot remain dependent on a one crop industry which is oil and gas. Therefore, services in that energy industry are an avenue to earn foreign exchange,” he said.
Howard’s comments were made in the context of increased border tensions between Guyana and Venezuela. In June, Venezuela’s President Nicolas Maduro demanded that Guyana stop oil exploration in disputed offshore territory by United States energy company, Exxon Mobil.
A recent Exxon Mobil discovery in the Atlantic Ocean off Guyana suugests that the country may hold oil and natural gas riches 12 times more valuable than its entire economic output.
Raphael Trotman, Guyana’s Minister of Governance, said The Liza-1 well, which probably holds the equivalent of more than 700 million barrels of oil, may begin producing crude by the end of the decade.
The prospect would be on par with a recent Exxon find at the Hadrian formation in the Gulf of Mexico and could be worth about US$40 billion at today’s international crude price.
Howard said there was no need for T&T to see Guyana as a competitor in the future.
“Guyana does not have a refinery, nor the kind of infrastructure like pipelines which T&T has.
“The question would arise, where would they refine their crude? Would they build a refinery, or would they sell their crude to T&T? A number of permutations can be worked out that would benefit both countries,” he said.
He said he was a strong advocate of Caricom countries working together, not only in the area of energy, but other areas as well.
“There could be a lot of synergies for T&T and Guyana in terms of our assistance in developing the oil and gas industry there.
“If your refinery is operating at 60 per cent capacity and you can get oil from Guyana that takes that to 80 per cent or 90 per cent then that means there are more opportunities for T&T’s professionals.
“With the vast lands that Guyana possesses which T&T does not have, if we work closely with that country, we can feed the people of Caricom,” he said.