Friday, December 2, 2022

Opinions

Towards a depletion policy for Guyana’s petroleum resources

The main aim of any country with petroleum resources is to achieve a self-sufficient level of oil production as quickly as possible. The analysis of resource management yields general guidelines, but very little in the way of practical concrete...

Policy issues to consider for a Guyanese oil fund

Economic theory suggests that there are a number of advantages arising from the establishment of an oil fund. These include the opportunity to create sustainable wealth, facilitate economic development over the long-term, enhance economic stability and ensure that the...

Inter-generational equity and the rationale for Guyana’s “Sovereign Wealth Fund”

The policy of investing resource revenues in reproducible capital suggests irresistibly that some appropriately defined stock is being maintained intact, and that consumption can be regarded as the "interest" on that stock (Solow 1986). Since the discovery of oil and...

An oil fund for Guyana – the role of fiscal institutions

Guyana has been blessed with an abundance of energy resources. For the next 40 years our economy will become a major producer of oil and gas. Hydrocarbons development is at the heart of Guyana’s future prosperity and a cornerstone...

Structural approach to maximizing Local Content Development: national benefits for an emerging petroleum-producing country

Initial efforts on local content have already contributed to the emerging oil sector transformation in Guyana. This can be seen from the first set of investment activities that are currently occurring with the establishment of new business frontiers, since...

Value-addition and human capital creation for economic growth: key elements of Local Content Policies

Local Content Policies (LPCs) are part of a broader category of policies known as Productive Development Policies (PDPs) or Industrial Policies (IPs), which, in the most expansive definition, include all government interventions, measures or programmes that aim to increase...

Local Content Policy for Guyana: Maximizing Economic Benefits

Increasing hydrocarbons finds offshore Guyana will offer significant opportunities to the country to fast track economic development and ensure that public welfare improvements are delivered to the citizens. One approach to doing so which should be adopted is to...

Guyana’s optimal policy – progressive taxation of petroleum and mineral resources

A commonly held view first introduced by the Dutch Disease literature is that resource price increases and more of the resource discoveries lead to higher government spending, an increase in the relative price of non-tradable goods and a loss...

Fiscal rules for Guyana’s future oil exporting economy

Commodity exporters such as Guyana should adopt procyclical fiscal policies that exacerbate macroeconomic volatility. Increasingly, empirical evidence suggests that the mismanagement of the commodity revenues may be a primary culprit behind the volatility in commodity exporting countries (Snudden 2016). Oil...

The financial sector and business cycle linkages in the emerging Guyanese oil economy

The recent oil price fluctuation has created concerns for many oil-exporting countries and particularly for the Organization of the Petroleum Exporting Countries (OPEC) members. For Gulf countries, hydrocarbon exports represent more than half of total exports. Oil revenues account...

Latest News

Hess first oil company to enter three-quarter billion USD carbon credits deal with Guyana

Stabroek Block stakeholder, Hess Corporation, has committed to purchasing US$750 million in carbon credits from Guyana, kicking off a...