Now that Guyana has become an oil-producing nation, a US-based Energy Expert believes Guyana should be cautious about external factors and the impact and influence those factors could have locally and on the global oil markets.
Energy Markets Expert and former White House Official Robert McNally is in Guyana for a series of talks being hosted by the Centre for Local Business Development (CLBD).
During a media briefing on Thursday, Mr. McNally said attention must be paid to oil prices and the global market and some of the issues that could impact those prices.
“Oil prices are like a roller coaster ride, they are prone to wild swings of what we call boom and bust swings, in my view what will determine the amount of revenue that Guyana sees from these astounding new finds will be driven much more than the crazy oil market than anything else, these prices are prone to wild swings and we have known that since the beginning of the modern oil market” McNally said.
He explained that even though oil is considered the lifeblood of modern civilization, there are risks involved, adding that “Guyana is joining a world oil market now, prices are affected by not only economic growth and new field starting up and supply and demand around the world but by Geo-Political Risk”.
McNally reminded that there are interest groups internationally that use their influence to influence oil prices and that is an issue that must also be examined.
Guyana, he noted, is doing all of the right things so far as it becomes part of the oil industry. The country, he believes, cannot let its guard down.