GUYANA | Striking a Fair Deal with ExxonMobil: Balancing Profit, Welfare, and Sustainable Development

GEORGETOWN, Guyana, July 18, 2023 - The exploration and extraction of oil reserves in Guyana by ExxonMobil have sparked debates on how to strike a fair deal that benefits all stakeholders involved, and in assessing the situation, it is crucial to consider ExxonMobil's profit motives, the United States' global welfare responsibilities, the well-being of the Guyanese people, and the imperative of global economic growth and production. 

Achieving a fair and balanced agreement requires careful deliberation and consideration of these factors.

1. ExxonMobil's Profit Motives:

As a business company, ExxonMobil has a legitimate goal of making profits. It invests substantial resources in exploring and developing oil reserves, assuming financial risks and operational costs. A fair deal acknowledges the company's need to generate returns on its investments while ensuring that these profits are not excessive or exploitative. Negotiations should aim for a reasonable profit margin that allows ExxonMobil to sustain its operations and incentivizes further investments while safeguarding the interests of other stakeholders.

2. United States' Global Welfare Responsibilities:

Given the United States' significant influence and role in global affairs, it is essential to consider the broader impact of any agreement on the world's welfare. As the largest consumer of oil, the United States has a vested interest in ensuring a stable and affordable energy supply. However, this interest should not come at the expense of environmental sustainability or the well-being of other nations. A fair deal should strive for responsible oil extraction practices, environmental conservation, and equitable distribution of benefits to promote global welfare.

3. Well-being of the Guyanese People:

The people of Guyana are rightful stakeholders in the oil contracts and deserve to reap the benefits of their natural resources. A fair deal should prioritize the well-being of the Guyanese people by fostering inclusive economic growth, reducing poverty, and improving social infrastructure. It is crucial to establish mechanisms that ensure transparency, accountability, and effective governance of oil revenues. Investments in education, healthcare, and sustainable development projects can enhance the quality of life for all Guyanese citizens.

4. Global Economic Growth and Production:

The world's increasing energy demands necessitate a balance between oil production and the transition to renewable energy sources. While acknowledging the need for sustainable development, a fair deal should also consider the importance of oil in global economic growth. A gradual shift towards renewable energy should be pursued, accompanied by investments in research and development of alternative energy sources. This approach allows for a smooth transition while ensuring a reliable energy supply for the world economy.

Conclusion:

Striking a fair deal with ExxonMobil regarding the oil contracts our country Guyana requires a delicate balance between profit motives, global welfare responsibilities, the well-being of the Guyanese people, and the imperatives of global economic growth. Negotiations should aim for a reasonable profit margin for ExxonMobil, considering its investments and operational costs, while safeguarding the interests of other stakeholders.

The United States, as a global leader, should prioritize responsible oil extraction practices and equitable distribution of benefits. Additionally, the well-being of the Guyanese people should be prioritized through inclusive economic growth and investments in social infrastructure.

Finally, a fair deal must also consider the imperative of sustainable development and the gradual transition to renewable energy sources. By addressing these concerns, a fair and balanced agreement can be reached, benefiting all parties involved.

Pandit Ubraj Narine, JP, COA
Mayor,
City of Georgetown

18.07.2023