GEORGETOWN, Guyana, (DPI) – His Excellency, Dr Mohamed Irfaan Ali has called for the formation of a new global coalition to address the urgent issues of climate change, food security, and energy security; as chief executive officer of global oil, gas and energy company, Hess Corporation, John Hess expressed pride at being able to contribute positively towards Guyana’s growing oil and gas sector and the development of the country as a whole. Hess was giving his remarks on the Macro Oil and Gas Industry, and an outlook for Guyana at the International Energy Conference and Expo 2023, at the Marriott Hotel on Tuesday, while president Ali, delivering the feature address at the second International Energy Conference and Expo, in Georgetown.
President Ali call to action comes at a critical time, as the world faces increasing threats from the impacts of climate change, including extreme weather events, rising sea levels, and loss of biodiversity. Food and energy security have also become pressing concerns as populations grow.
“We cannot confront these challenges in isolation of the actors within the challenge themselves. So, how is it that we can lead a new world effort in building a coalition that addresses these challenges that the world we live in is facing and will face in a more severe manner,” president Ali said to the audience.
President Ali stressed the importance of avoiding self-righteousness when addressing these issues. Speaking from the perspective of an oil-producing country, he noted that Guyana will continue to extract natural resources in a responsible manner to promote development and prosperity for all its citizens.
“I also speak from a country that has one of the best environmental credentials in the world. It’s not by accident that we have this credential. It is part of what we have been naturally blessed with,” he added.
Guyana’s forest is over 18 million hectares and stores over 21 gigatons of carbon, president Ali reminded. He said the country’s carbon forest is US$162 billion.
President Ali highlighted the value of voluntary carbon markets globally is nearly US$2 billion, with around 500 million carbon credits.
Guyana has a value of $US750 million in a signed agreement for the next ten years.
“That is 40 percent of what the world has in signing agreements, what do we do as a country? I say, we celebrate this accomplishment because this is visionary, proactive, sustainable and catalyses the value of our natural resources,” he underscored.
The president added that the government initially created a Low Carbon Development Strategy (LCDS) to earn revenue and promote sustainable development through investments.
Upon returning to office in 2020, the strategy was updated to LDCS-2030 to reflect current circumstances and now plays a significant role in the country’s development platform.
“We know what the LCDS is capable of… the LCDS is a demonstration of a practical document and Guyana’s position is to make the LCDS a model for sustainable development,” the head of state asserted.
One of the innovative initiatives that Guyana is currently implementing is a forest payment scheme that enables countries or companies to pay for a tradable permit called carbon credits.
Recently, Hess Corporation committed to pay US$750 million to Guyana as part of a special carbon credits scheme that incentivises forest conservation. Some 15 percent of the revenue generated will be allocated to Guyana’s indigenous communities.
President Ali announced that the initial payment will be distributed to the Toshaos on Wednesday, demonstrating the government’s commitment to empowering and supporting Amerindian communities. Notably, he said Guyana is keen on harnessing its oil wealth to diversify the economy.
Already, the country is pursuing a Gas-to-Energy project, which is expected to cut electricity costs by more than half.
Meanwhile, the CEO of Hess Corporation, John Hess, highlighted that Guyana will play an important role in ensuring an orderly energy transition, noting that the country has a unique opportunity to be a role model for oil-producing countries, as well as developing countries around the world.
“Oil and gas will be needed for decades to come. I know President Biden [President of the United States of America] talks that it will be a while – maybe ten years. But at the end of the day, it’s going to be decades to come. And oil and gas are fundamental to ensure an affordable, just and secure energy transition,” Hess said.
He lauded president, Dr Mohamed Irfaan Ali’s ‘outstanding’ spokesmanship on the transitioning to sustainable energy and the role oil and gas are playing in bringing shared economic prosperity to the people of Guyana.
The CEO also brought attention to the much-needed oil Guyana will be able to supply that is essential to achieving global energy security and economic growth.
He reiterated points made by president Ali, on the need for increased investment with regard to the energy sector, and the need for climate, energy and economic literacy.
Hess also lauded Guyana’s achievements in the oil and gas sector, noting the presence of over 11 million barrels of oil offshore Guyana, with more than 30 new discoveries since 2015.
“It is a remarkable achievement that the country is already producing more than 380,000 barrels per day of some of the highest value low carbon crude oil in the world, with a line of sight to be producing over 1.2 million barrels per day by 2027,” he stated. Guyana will become one of the largest crude oil producers in the world, which is a phenomenal achievement.
As Guyana’s oil production continues to increase, the government of Guyana is committed to ensuring that the country’s growing wealth is invested in sustainable development and an enhanced quality of life for all citizens.
The Conference and Expo are being held under the theme ‘Harnessing Energy for Development’ from February 14-17. It brings together policymakers, academics, industry professionals, and entrepreneurs from around the world, as well as global energy leaders in sustainable development.
