The article addresses allegations from newspaper publisher Glenn Lall regarding the oil industry’s negative impact on Guyana’s fishing and agriculture sectors. The Ministry of Natural Resources provided a detailed rebuttal, indicating growth in these sectors and affirming responsible management of oil revenues. The government contested claims of infrastructure burden, secrecy, and loss of revenue, reinforcing transparency and ongoing development initiatives.
The recent article discussing the challenges in Guyana’s oil industry has drawn attention, especially following comments from Glenn Lall, a local newspaper publisher, who observed that the industry is facing severe setbacks. The Ministry of Natural Resources promptly issued a detailed rebuttal to Lall’s assertions, emphasizing the resilience of the fishing and agriculture sectors despite oil operations’ perceived detrimental effects.
Lall claimed that the fishing industry in Guyana has deteriorated, citing fishermen’s inability to cover costs due to the oil production impacts. In contrast, the Ministry reported a 1% growth in the fishing sector for 2024, with diverse areas like marine shrimp production rising by 8.5% and aquaculture expanding by 13.7%. They predict a further increase in the fishing sector by 5.8% in 2025.
Additionally, Lall’s concerns about the agricultural sector were also contested. The Ministry noted that this sub-sector increased by 10.9% in 2024 and is expected to grow by 11.7% in 2025, contradicting claims of local food production failure due to oil impacts.
Lall stated that the cattle industry was destroyed by oil activities; however, the Ministry countered this by revealing a robust growth of 24.6% in 2024 and a projected 7.5% for 2025, noting significant expansions across the livestock categories including poultry and beef production.
The Ministry defended the infrastructural developments funded by oil revenues, which aim to enhance roads and bridges. They rejected Lall’s arguments that oil operations burden infrastructure due to overweight vehicles, reaffirming their commitment to infrastructure robustness.
Despite complaints regarding contractors’ work quality, the government reiterated that these issues do not stem from the oil sector. The Ministry also responded to Lall’s claims concerning transparency of oil revenue expenditure, clarifying that all oil revenues are accounted for within the National Budget, which is subject to parliamentary review.
Furthermore, the Ministry dismissed Lall’s claims of secrecy surrounding the Gas-to-Energy project financing as unfounded. They stated that these financing conditions are publicly accessible and that ongoing arbitration related to the project is a routine contractual matter.
Lastly, Lall suggested that gas flaring causes significant discomfort for residents; however, the Ministry attributed temperature variations to normal seasonal changes rather than oil activities. They clarified that disaster assessments concerning tsunamis are part of ExxonMobil’s Environmental Impact Assessments, asserting that the risk of a tsunami affecting Guyana is minimal due to its geographical position.
Regarding unring-fencing claims, the Ministry explained that it is an accounting method allowing oil companies cost recovery across projects, thereby not negating potential state revenues, and firmly dismissed allegations of losing $20 billion without evidence, including unfavorable comparisons made by foreign officials.
The Ministry of Natural Resources provided a strong rebuttal to Glenn Lall’s assertions regarding the negative impact of the oil industry on various sectors in Guyana, emphasizing growth in fishing, agriculture, and livestock. They confirmed that oil revenues are being responsibly managed and are essential for infrastructure development. By clarifying myths around disasters, financial loss, and transparency, the government aimed to reassure the public about the ongoing positive contributions from the oil sector to the economy.
Original Source: nycaribnews.com
