Opinions

There is an important fact that must be addressed for new oil-producing states such as Guyana: The government's spending decisions can affect the incumbent's likelihood of remaining in power. As the incumbent foresees these consequences, they will modify their...

It is imperative to highlight the political economy incentives that may face politicians in countries, such as Guyana, with accumulated revenues – whether or not these revenues are formally a "fund." To set up institutional solutions to make it...

The question of how much crude U.S. producers may be able to add in 2020 could be pivotal for oil prices this year, analysts told CNBC, while warning of the potential for “vicious corrections” in the coming months. Speaking to...

The following op-ed was first published on December 23, 2019. One year later, the advice from Trinidad and Tobago's former Energy Minister Kevin Ramnarine remains pertinent. By Kevin Ramnarine - OilNOW  Guyana is at the dawn of a new economic era...

The economic case for natural resource funds is surprisingly weak. There is, however, an important political rationale for resource funds. The importance of natural resource funds (NRFs) lies in the effects that they have on the incentives facing political...

Matters such as public governance and integrity may be already addressed by existing legislation; if not, they should be addressed in the oil revenue management law or in ancillary regulation. At a minimum, the basic principles of public governance...

By Bobby Gossai Jr. Bobby Gossai, Jr. recently completed his MSc (Econ) in Petroleum, Energy Economics and Finance from the University of Aberdeen. Mr. Gossai, Jr.’s professional experiences include being the head of the Guyana Oil and Gas Association and...

An important mechanism of accountability is the periodic auditing of the oil fund. An oil revenue management law should specify the accounting method or methods the oil fund should follow and require all activity of the oil account to...

Limitations on Types of Investments An oil revenue management law should limit an oil fund's investments to certain secure and non-speculative instruments. New oil revenue management law and petroleum fund law should provide for such limitations. As a fund becomes...

Central to any revenue management law is the set of rules and basic principles governing the management of the oil fund. Good governance, professional management, and broad oversight can go a long way in protecting the value of oil...