Oil revenues can place Guyana on sustainable development pathway – Dr. Bynoe

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Dr. Mark Bynoe, Director of Guyana’s Department of Energy (R), interacts with a participant at the Turkeyen and Tain Talks 18, held on May 30, 2019 in Georgetown, Guyana.

Director of Guyana’s Department of Energy (DE), Dr. Mark Bynoe said the sustainable development of Guyana’s hydrocarbon discoveries and the revenues it will generate have the potential to place the country on a sustainable development pathway.  According to a statement from the Ministry of the Presidency, Dr. Bynoe noted too that it is occurring at a particularly opportune time as the country is pursuing development based on the principles enshrined in its Green State Development Strategy (GSDS).

The DE Director made these statements at the University of Guyana’s ‘Turkeyen and Tain Talks 18’ event titled; “Energy for Guyana, Renewable Energy, Oil, Gas and Guyana’s Green Future,” which was hosted at the Pegasus Hotel as part of ‘Energy Week’ activities.

Dr. Bynoe was among eight panellists from a group including professors from local and international academia, among others, relative to the energy sector, who made presentations to translate new concepts and foster further discussions on creating a productive, efficient and sustainable energy sector in Guyana, the Ministry of the Presidency said.

In his discourse on the topic “Oil and Gas in a Green’ Guyana,” Dr. Bynoe said, “Energy is not an end in itself. It’s what it can be used for to transform the lives and livelihoods of all Guyanese going forward. Further, the GSDS is premised upon the effective management of the country’s natural resource wealth, inclusive of our hydrocarbons, supporting economic resilience and building human capital Guyana.”

He noted too that pursuing oil and gas development does not necessarily run counter to the paradigms of the GSDS model.

“It is not just about energy; it’s a development paradigm. How can we achieve these objectives in the face of Guyana’s expanding oil and gas reserve estimates? Firstly, while there continues to be substantial discussions around the utilization of the oil revenues (as there should be), the hydrocarbon resource revenues are expected to be the catalyst for growth and funding of the GSDS, whether, for example, in pursuing cheap and reliable energyincluding for value addition in other sectors…We must be able to understand where the growth sectors are and be able to target and put resources therein and I can say coming from my own background, and what we’re already seeing, in terms of the supporting structures to support the oil and gas industry, we’re already seeing an increasing demand for energy,” he stated.

Guyana Energy Agency, Chief Executive Officer, Dr. Mahender Sharma shared a similar view.  In his presentation titled “Guyana and Energy: A General Overview” he said having oil and gas does not preclude Guyana from pursuing sustainable development.

“I see the word ‘sustainable’ is absent from this title, but not because we have oil and gas means [that] we cannot approach our energy sector development and our country’s development in a sustainable manner.  We all know that we have lots of hydropower resources; we know that we get good sunshine.  We’ve also learnt that the wind regime on the coast of Guyana is fairly good…and Government has been capitalising on much of this,” he said.

Dr. Sharma recalled that Guyana’s hydro power potential, for example, was examined since around the 1970s’ and “that is huge; it’s at the order of 7000 megawatts. Our peak demand is still about 115-118 megawatts… [or thereabouts] so we need to develop that… The energy matrix of the future must bring into consideration, must incorporate what we have in Guyana, must incorporate gas, oil, if possible, hydro power, solar and wind and that diversity is what adds strength and provides us [with] the kind of energy security that we need,” he said.

In this vein, Professor of Corporate Finance and Energy Investment at ITAM and CBMEX in Mexico, Jose Pablo Rinkenbach, who said his country has been producing oil for more than 100 years and has over the last 10 years, been creating a robust and sustainable energy sector, said there are five lessons that were learnt that may prove valuable for Guyana at this stage of its development.

“The first one has to be that you have to have an holistic approach. Don’t think just about oil and gas, think about energy, because otherwise you risk having…Dutch disease of putting all the resources into oil and gas.  Having energy and energy focus will help you in order to have a right balanced energy matrix…” he said.  Having a robust regulatory framework, embracing transparency, focusing on national development and managing information are also important, he added.

Source: Ministry of the Presidency