Guyana Oil Contract Debate – Proposition

Last updated: June 13, 2018 at 4:39 am

petroleum photoFor more information and guidelines on how to write a debate, see my article on “How to Write a Debate.”

Motion: The Contract Signed by the Government of Guyana and Exxon Mobil has seen Guyana with insufficient royalties to harness continuous growth and development in our country.

Whereas:

  1. The new development will benefit the locally owned domestic services industries countrywide.
  2. Guyana will be vulnerable to the Dutch disease and pollution which will negatively impact our country, therefore, there should be a cost attached to these risk factors in the event of any catastrophe.

The proposition will support the above motion. Below is an example of an argument that can be put forward by the proposing team or proposition of the above stated motion.

****Starts Below***

Esteemed judges, learning opposition, timekeepers, fellow colleagues of the proposition, all. I stand here to enlighten you to the fact that “The Contract Signed by the Government of Guyana and Exxon Mobil has seen Guyana with insufficient Royalties to Harness Continuous Growth and Development in Our Country.”

Before going any further, allow me to define a few key words within the motion that will be dealt with in my presentation.

Contract – a legally binding agreement between two parties.

Signed – consented through handwriting

Government – the officials and law by which the citizens of a country are ruled.

Exxon Mobil – the US oil giant who has taken on the responsibility of drilling for oil in Guyana.

Royalties – payment agreed upon for each barrel of oil produced.

Continuous – not ceasing

Growth – Upward progression and advancement.

It is a sad fact that, under conditions where people don’t stand up for what is right and just, the rich gets richer and the poor gets poorer. And such a scenario is exactly what is set to happen in Guyana with the recent oil contract signed between the Government of Guyana and the Oil Giant Exxon Mobil.

Money cannot buy respect, but it certainly improves your bargaining power. And that’s exactly what’s happening between the billionaires of Oil Giant Exxon Mobil and poor, struggling Guyana, casting a blind eye to all the red flags in a desperate bid to secure a meager profit from BIG OIL.

The Guyanese government has demonstrated an overenthusiastic stance in jumping into oil, thinking that it is still the black gold of the twenty first century, all the while not knowing that this dear land of our is about to be plundered. And unless this government is willing to open its eyes now, it will be subjected to some rude awakenings.

Exxon Mobil knows that the Ministry of Natural Resources has no foresight, no discretion and no choice, but to jump prematurely into a deal that is bound to leave Guyana shattered.

Guyana will get two percent royalties on oil produced, giving it about $1 million per day when actual production begins in 2020, but what good will that do considering the charges that Exxon Mobil has already slapped Guyana with even before a single drop of oil was extracted?

Quoting a Kaieteur News article of Jan 18, 2018, “Guyana is now hurrying to put measures in place to monitor and assess cost recovery claims. However, it has already tied itself to the repayment of US $460,237,918M. This is according to the 2016 Production Sharing Agreement (PSA) that Minister of Natural Resources, Raphael Trotman signed with ExxonMobil.

And I say again: 460 MILLION UNITED STATES DOLLARS. Before a single drop of oil was extracted! If that doesn’t make you nervous. If that doesn’t move you to the point of sleeplessness, to the point where you’re driven to review in the ENTIRE CONTRACT, then it’s either you don’t care about Guyana, or you’re truly complacent.

Let’s not forget Dutch Disease, and how an inflation of our currency will negatively affect our competitive edge and our abilities to reach export markets. With the value of our currency steadily rising against the US dollar because of OIL MONEY, it will be difficult for is to make a profit from so many nations we are now trading with.

And tell me, all this considered, do you think the 2 cents that Exxon Mobil is giving us will truly compensate us for the adjustments we’ll have to make to the all sectors of our country’s economy? Do you think it is really enough of a compensation to strengthen our economy in all aspects for the long run?

Let’s not think about our own pockets. Let’s not think just about the joy of the moment. Let’s think about Guyana’s future and the children of tomorrow. Let us not let Exxon Mobil leave our land ravaged and our economy plundered. Let us demand something better for ALL Guyanese.

Thank you for listening.

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