Thorough, independent studies critical for onshore gas development – US Analyst
AMI analyst Arthur Deakin.6
Kaieteur News – For the government to prudently manage the anticipated onshore gas development, rigorous, independent studies will be vital. Making this fundamental point is the American Market Intelligence (AMI) analyst, Arthur Deakin, at an agency in the United States (US). His comments on this were made during an interview with Kaieteur Radio in January.
AMI, a US-based management consulting firm, is well known for providing its insights that unlock opportunities in Latin America through market intelligence, research and analysis.
During the interview, Deakin was asked if he thinks Guyana should move forward with the onshore gas project and what steps the country should take to ensure it is financially sound.
In response, the analyst gave his support for the onshore gas project and said it would be beneficial for Guyana to consider. In giving context to this situation, Deakin noted that he had seen the electricity tariffs in Guyana and noted that these tariffs were among the highest in the region
“That’s a barrier to business development; it encourages multinationals not to set up operations there, ”Deakin said, adding,” The reason it is so expensive is because Guyanese businesses rely on diesel-powered generators, which are very expensive and not is as effective as energy generation. So that high cost is going to be reduced by the offshore gas power scheme. “
Finding the right divide between the government and ExxonMobil’s investment in this plant is important, Deakin said. Also essential is that “very thorough and independent studies discover what makes sense in the development of the project; ensuring it is run by an independent organization, ”noted Deakin.
He continued, “I think that’s very important. I believe that using the existing infrastructure for oil extraction is already in place; be able to take advantage of any of that for exporting the gas. That’s also going to be huge in terms of making it economically viable, and then just getting appropriate funding from either the government or Exxon or even some other private investors that would get the capital in place for this offshore gas project. ”
Notably, Deakin’s comments on rigorous, independent studies of this controversial project coincide with recent news that ExxonMobil will select companies to conduct studies for the onshore gas project. These studies include LiDAR, which stands for Light Detection and Ranging, which is a remote sensing method that uses pulsed laser light to measure ranges; geophysical and geotechnical studies; as well as an Environmental Impact Assessment (EIA).
The government has not yet revealed whether it will pursue a financial study on this project, which will assist in discovering its financial viability.