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After four decades of oil production, Angola remains poor

– Guyana must take heed –IEEFA Advisors

Kaietueur News – With the monetization of its nine billion barrels of oil equivalent resources, Guyana’s leaders hope to raise the standard of living of its people, cut the nation’s debt, and create a sovereign wealth fund with significant deposits. But the unfortunate reality that confronts the new oil producing state is that it is in a weak position to accomplish these goals. This is according to Tom Sanzillo and Gerard Kreeft, two financial and energy advisors attached to the Institute for Energy Economics and Financial Analysis (IEEFA).
To cement their argument, Sanzillo, IEEFA’s Director of Financial Analysis and Kreeft, IEEFA’s Energy Transition Advisor, urged all Guyanese authorities to consider the case of Angola, which has hosted world oil developers for the last 25 years and is a cautionary tale for nations hoping to cash in on oil and gas development.
In providing some historical context, Sanzillo and Kreeft noted that oil was discovered in Angola in 1955. They explained that in the 1990s, deepwater exploration took off and Angola became a global presence. They said that major oil companies including Total, ExxonMobil, BP, ENI, Chevron and Equinor have successfully drilled for oil in working through Sonangol, the nation’s state-owned oil and gas operator. Both noted that the country produced approximately 1.4 million barrels per day last year, down from peaks of 1.9 million barrels per day. Given its vast resources, the advisors highlighted that Angola rank 15th in the world of top oil producers while adding that President Joao Lourenco is trying to increase production with a new round of offers to the international oil community.
Despite its resources however, the two advisors said that “four decades of oil production have created neither prosperity nor fiscal stability for Angola.” At the end of 2020, they pointed out that the national debt stood at approximately US$76 billion. They said, “With the assistance of the IMF, World Bank, African Development Bank and others, Angola has managed to juggle its year-to-year obligations with a combination of refinanced or forgiven debt. Angola recently entered the G-20’s Debt Service Suspension Initiative, designed to assist financially distressed countries.”
What is also shocking about the country that is so rich with oil is the fact that one in three Angolans lives below the poverty level, and more than half live on less than U$1.90 per day. Sanzillo and his colleague noted that an unbalanced economy and corrupt government are cited as major factors driving the economic inequality.
Considering the foregoing, both analysts agreed that oil development surely led Angola into a series of traps that include budget deficits, foreign indebtedness, corruption, and oil exploration and development contracts that have benefited corporations at Angola’s expense. And despite the current struggle to introduce new reforms and combat corruption, Sanzillo and Kreeft noted that the lack of economic diversification leaves Angola poorly positioned to handle changes brought on by the energy transition.
Taking the case of Angola into account, the IEEFA advisors alluded that it may not be possible for Guyana to steer clear of a similar fate, especially when it continues to cling to a one-sided deal that favours the three companies (ExxonMobil, Hess, and CNOOC/NEXEN), creates obstacles to growth, and threatens to leave Guyana deeper in debt.

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Given its vast resources, the advisors highlighted that Angola rank 15th in the world of top oil producers while adding that President Joao Lourenco is trying to increase production with a new round of offers to the international oil community.
Despite its resources however, the two advisors said that “four decades of oil production have created neither prosperity nor fiscal stability for Angola.” At the end of 2020, they pointed out that the national debt stood at approximately US$76 billion.

Well, I keep harping on the need for.a refinery to.be built which would supply not.only.the electric company's needs but that of ALL developing industries! Industry, whether in war or.peace, run on REFINED oil! So does the economy! It is stupid to sell unrefined oil cheap and import more expensive refined oil! 'Dr'. Jagdeo, as a supposed economist should know this, yet he holds on to his gas-to-shore. what can only be a, scam, benefitting himself, his cronies and Exxon and, maybe, the other oil companies! Guyana better.be prepared to be ahafted again! And again.....

As for the Opposition! Where do they exist?

@Ramakant-P posted:

Angola is not the Republic of Guyana. What happened to Angola may not happen in Guyana.  The boys in the PPP know how to run their cake shop, those in Angola don't.

Cake shop, huh? We'll soon see!

@Ramakant-P posted:

"cake shop" was figuratively used. It's time you understand my rhetorics.

Your rhetoric? Sh*t, you can't even redirect! I had to find your post myself! You must eat a lot of discounted stale bread from the cake shop!

Last edited by shallyv
@Ramakant-P posted:

Angola is not the Republic of Guyana. What happened to Angola may not happen in Guyana.  The boys in the PPP know how to run their cake shop, those in Angola don't.

Angola does not have a stock market. This means that oil wealth cannot be maximized long-term. For example, oil windfalls cannot be converted into financial assets that can produce higher yields over time.

@Ramakant-P posted:

Angola does not have a stock market. This means that oil wealth cannot be maximized long-term. For example, oil windfalls cannot be converted into financial assets that can produce higher yields over time.

You could be right! There are PPP financial ass ets to.be considered! Guyana needs.more Pradovilles!

But we need not worry! Trickle down theory ass ures more work for.more servants!

Last edited by shallyv
@shallyv posted:

You could be right! There are PPP financial ass ets to.be considered! Guyana needs.more Pradovilles!

But we need not worry! Trickle down theory ass ures more work for.more servants!

There is no need for you to worry because the PPP is putting their ideas into practice. Pradoville is a national treasure. People are flocking there by the thousands.  A statue of BJ will be built to let all Guyanese know what a great man he is. The PPP will continue to build the country and negative people like you will continue to suffer.

@Ramakant-P posted:

There is no need for you to worry because the PPP is putting their ideas into practice. Pradoville is a national treasure. People are flocking there by the thousands.  A statue of BJ will be built to let all Guyanese know what a great man he is. The PPP will continue to build the country and negative people like you will continue to suffer.

I just knew Guyana had produced. a  person of outstanding talents, a King, if.you.would like to call him that! The King.of.bullshitters, our own.previously unrecognized kant, the k*nt!

Perhaps they will include you.in.the monument at his feet! I suggest.the name, Fawning, or even Servile, Dog.for.this.part of.the.monument!

Whaddya say kant, you.k*nt?

Last edited by shallyv
@shallyv posted:

I just knew Guyana had produced. a  person of outstanding talents, a King, if.you.would like to call him that! The King.of.bullshitters, our own.previously unrecognized kant, the k*nt!

Perhaps they will include you.in.the monument at his feet! I suggest.the name, Fawning, or even Servile, Dog.for.this.part of.the.monument!

Whaddya say kant, you.k*nt?

I think that you have been overloading your medication. How else can you account for your warped sense of mind and crazy thoughts?

@Ramakant-P posted:

I think that you have been overloading your medication. How else can you account for your warped sense of mind and crazy thoughts?

At least he's got an excuse. To what do we owe your warped logic and cult like worship of Jagdeo and the PPP?

@Ramakant-P posted:

There is no need for you to worry because the PPP is putting their ideas into practice. Pradoville is a national treasure. People are flocking there by the thousands.  A statue of BJ will be built to let all Guyanese know what a great man he is. The PPP will continue to build the country and negative people like you will continue to suffer.

This is the problem. This cult like worship of Jagdeo and the PPP by Indians, strictly because the PPP is an Indian party. Love your own. ah we pan tap. Thus high crimes and misdemeanors are excused, and Indians refuse to hold the PPP accountable.

The same on the other side. The PNC was excused by black people though they were made poor in the 28 years. We cling to them because we see them as the only thing standing between us and total exclusion from Guyana's economy and a return to 2nd class citizenship in a land that we helped build.

PPP sycophants, PNC sycophants. Each with their blind, cheering supporters. All this shit about "economy" and oil is useless. We have HUGE race issues that neither side is willing to address. Not to mention BOTH sides mistreat the native Amerindians.

Guyana is a fked up place going nowhere until the race issue is addressed. America realizes there is a race problem here too, though not of the magnitude that it is in Guyana. So in America you see policies, programs, crafted to address racial insecurity.

Why can't we sit down as a people, without help of the developed nations and work this out over a banks beer? BOTH sides have valid arguments, BOTH sides fear and mistrust each other. We are going nowhere as the climate is charged regardless of all the big buildings and oil flowing etc. We will be Angola.

The PPP is not an Indian Party and I do not worship Jagdeo. Blacks also refused to hold the PNC accountable for their criminal activities.  The Leaders of the PNC declared that the PNC is for blacks only. The PNC inconsistencies are well documented.  Please state what race issues are you talking about.  Iguana, I do not know who the hell you are or think you are, but I don't give a rat's ass about what you think.

I will always defend a progressive PPP.  I am the PPP.

@Ramakant-P posted:

The PPP is not an Indian Party and I do not worship Jagdeo. Blacks also refused to hold the PNC accountable for their criminal activities.  The Leaders of the PNC declared that the PNC is for blacks only. The PNC inconsistencies are well documented.  Please state what race issues are you talking about.  Iguana, I do not know who the hell you are or think you are, but I don't give a rat's ass about what you think.

I will always defend a progressive PPP.  I am the PPP.

This is exactly what Iguana mentioned. First, he admitted both PNC and PPP followed their leaders blindly without holding them accountable.

Second, you admit "always" defending the PPP, this means even though they are wrong.

@Mitwah posted:

Not because you are wearing a seersucker blouse, that makes you a seer.

No, it doesn't! I do not profess to be one, although you are trying to make it look that way.

Last edited by Ramakant-P
@Mitwah posted:

Not because you are wearing a seersucker blouse, that makes you a seer.

@Ramakant-P posted:

No, it doesn't! I do not profess to be one, although you are trying to make it look that way.

What colour is the blouse, hot pink? Jus Askin.