Guyanese American writer Gaiutra Bahadur (author of Coolie Woman: The Odyssey of Indenture) recently published an in-depth article on Guyana’s conundrum for The New York Times (30 March 2024). She underlines, “More than any single country, Guyana demonstrates the struggle between the consequences of climate change and the lure of the oil economy.” Read full article, with photographs by Keisha Scarville, at The New York Times.
Basjit Mahabir won’t let me in.
I’m trying to persuade Mr. Mahabir to open the padlocked gate of the Wales Estate, where he guards the ramshackle remains of a factory surrounded by miles of fallow sugar cane fields. The growing and grinding of sugar on this plantation about 10 miles from Georgetown, Guyana’s capital, ended seven years ago, and parts of the complex, its weathered zinc walls the color of rust, have been sold for scrap.
I plead my case. “I lived here when I was a little girl,” I say. “My father used to manage the field lab.” Mr. Mahabir is friendly, but firm. I’m not getting in.
The ruins are the vestiges of a sugar industry that, after enriching British colonizers for centuries, was the measure of the nation’s wealth when it achieved independence.
Now the estate is slated to become part of Guyana’s latest boom, an oil rush that is reshaping the country’s future. This nation that lies off the beaten track, population 800,000, is at the forefront of a global paradox: Even as the world pledges to transition away from fossil fuels, developing countries have many short-term incentives to double down on them.
Before oil, outsiders mostly came to Guyana for eco-tourism, lured by rainforests that cover 87 percent of its land. In 2009, the effort to combat global warming turned this into a new kind of currency when Guyana sold carbon credits totaling $250 million, essentially promising to keep that carbon stored in trees. Guyana’s leadership was praised for this planet-saving effort.
Six years later, Exxon Mobil discovered a bounty of oil under Guyana’s coastal waters. Soon the company and its consortium partners, Hess and the Chinese National Offshore Oil Corporation, began drilling with uncommon speed. The oil, now burned mostly in Europe, is enabling more global emissions — and producing colossal wealth.
The find is projected to become Exxon Mobil’s biggest revenue source by decade’s end. The deal that made it possible — and which gave Exxon Mobil the bulk of the proceeds — has been a point of public outcry and even a lawsuit, with a seeming consensus that Guyana got the short end of the stick. But the deal has nonetheless generated $3.5 billion so far for the country, more money than it has ever seen, significantly more than it gained from conserving trees. It’s enough to chart a new destiny.
The government has decided to pursue that destiny by investing even further in fossil fuels. Most of the oil windfall available in its treasury is going to construct roads and other infrastructure, most notably a 152-mile pipeline to carry ashore natural gas, released while extracting oil from Exxon Mobil’s fields, to generate electricity.
The pipeline will snake across the Wales Estate, carrying the gas to a proposed power plant and to a second plant that will use the byproducts to potentially produce cooking gas and fertilizer. With a price tag of more than $2 billion, it’s the most expensive public infrastructure project in the country’s history. The hope is that with a predictable, plentiful supply of cheap energy, the country can develop economically.
At the same time, climate change laps at Guyana’s shores; much of Georgetown is projected to be underwater by 2030.
The natural gas pipeline will snake across a former sugar estate and private land. The government hopes the effort will bring a dependable source of energy to diversify the economy. At the same time, rising sea levels threaten the capital, Georgetown.
Countries like Guyana are caught in a perfect storm where the consequences for extracting fossil fuels collide with the incentives to do so. Unlike wealthy countries, they aren’t responsible for most of the carbon emissions that now threaten the planet. “We’re obviously talking about developing countries here, and if there’s so much social and economic development that still needs to happen, then it’s hard to actually demand a complete ban on fossil fuels,” says Maria Antonia Tigre, a director at the Sabin Center for Climate Change Law at Columbia University. Still, she insists, “we’re in a moment in the climate crisis where no one can get a pass.”
This struggle between the existential threats of climate change and the material gains dangled by fossil fuels bedevils rich countries, too. The International Energy Agency predicts that oil demand will peak in five years as big economies transition to renewable sources. But it is a transition of indeterminate length, and in the meantime, the Biden administration approved drilling in the Alaska wilderness just last year, and the United States is producing more oil than ever in its history. A country like Guyana, with an emerging economy, has even more reason to jump at temptation.
The country has already been transformed. Next to its famously elegant but decaying colonial architecture, new houses, hotels, malls, gyms and offices of concrete and glass crop up constantly. Trucks carrying quartz sand for all this construction judder along the highways. While nearly half of Guyanese still live below the poverty line, the country is bustling with possibility, and newcomers arrive from around the world. During a five-month stay there, I met a logistics manager from Sri Lanka, a nightclub singer from Cuba, a Briton developing a shrimp farm and a Nigerian security guard who joked that a sure sign that Guyana had become a hustler’s paradise was that he was there. [. . .]
The world is at a critical juncture, and Guyana sits at the intersection. The country of my birth is a tiny speck on the planet, but the discovery of oil there has cracked open questions of giant significance. How can wealthy countries be held to account for their promises to move away from fossil fuels? Can the institutions of a fragile democracy keep large corporations in check? And what kind of future is Guyana promising its citizens as it places bets on commodities that much of the world is vowing to make obsolete? [. . .]
What dominates the local imagination now is oil and gas. During my stay in Guyana, I kept hearing the calypso song “Not a Blade of Grass” on the radio. Written in the 1970s as a patriotic rallying cry and a stand against Venezuela, which threatened to annex two-thirds of Guyana, it has made a comeback with a new cover version. (So, too, have Venezuela’s threats.) The lyrics, to an outsider’s ear, sound like an anthem against Exxon Mobil: “When outside faces from foreign places talk about takin’ over, we ain’t backin’ down.” But in Guyana, it has been invoked recently to assert the nation’s right to pump its own oil. The voices against drilling, however outspoken, remain isolated; the more passionate debate is over whether Guyana should renegotiate its contract to get a bigger take of the oil proceeds.
Oil is seen as such a boon that even questioning how it’s regulated can be branded unpatriotic. Journalists, academics, lawyers, workers at nongovernmental organizations and even former E.P.A. employees confided their fear of being ostracized if they spoke against petroleum. [. . .]
Read full article at https://www.nytimes.com/2024/03/30/headway/is-guyanas-oil-a-blessing-or-a-curse.html
Guyanese American writer Gaiutra Bahadur (author of Coolie Woman: The Odyssey of Indenture) recently published an in-depth article on Guyana’s conundrum for The New York Times (30 March 2024). She underlines, “More than any single country, Guyana demonstrates the struggle between the consequences of climate change and the lure of the oil economy.” Read full article,
