Hess Corporation has discovered a new oil reserve at the Lancetfish-1 well on the Stabroek Block in offshore Guyana. The well, located around 4 miles southeast of the Fangtooth discovery, was drilled by the Noble Don Taylor in 5,843 feet of water and found approximately 92 feet of oil-bearing sandstone reservoir. Additionally, Hess has disclosed that Kokwari-1 exploration well was drilled in the first quarter of the year but did not find commercial quantities of hydrocarbons. Hess has a 30% stake in the Stabroek Block, ExxonMobil is the operator with a 45% interest, and CNOOC holds a 25% stake. In 2023, ten wells are planned for the Stabroek Block.
Diaspora Engagement
From Black Gold to Green Fields: The Promise of Guyana’s Oil Wealth in Supporting Agriculture
From Black Gold to Green Fields: The Promise of Guyana’s Oil Wealth in Supporting Agriculture
By
Dr. Carolyn Walcott & Dr. Terrence Blackman
Guyana, a small country on the Atlantic coast of South America, is in the throes of a significant economic transformation. The 2015 discovery of large oil and gas reserves off its coast completely changes the country’s trajectory. Guyana is forecasted to produce 1.7 million barrels per day (bpd) of oil by 2035. It is expected to earn billions of dollars in revenue, with some estimates suggesting that the country is likely become one of the wealthiest in the region.
However, Guyanese must know the potential pitfalls of relying solely on oil revenue, and they must explore ways to use this newfound wealth to support other sectors of the economy. One priority area deserving of amplified support is the agricultural sector. With suitable investments, Guyana’s oil wealth could catalyze sustainable farming practices, boost agricultural productivity, and transform the country into a green oasis. Prompted by Episode IX of the Guyana Business Journal and Caribbean Policy Consortium Series Transforming Guyana, we reflect on the promise of Guyana’s oil wealth in supporting agriculture and the potential challenges ahead.

(n.d.). Guyana’s Exports (2020) Total: $2.99B. The Observatory of Economic Complexity. Retrieved March 21, 2023, from https://oec.world/en/profile/country/guy
Oil is the backbone of Guyana’s 2023 economy. Crude oil accounts for approximately 40% of the nation’s exports. While large oil reserves have the potential to bring in billions of dollars in revenue, it also poses significant risks. The volatility of oil prices means that Guyana’s economy could be severely impacted if oil prices plummeted. Additionally, an economic overreliance on oil can lead to a neglect of other sectors of the economy, resulting in an unbalanced economy that is vulnerable to shocks. Therefore, diversifying the economy beyond oil revenue is crucial for Guyana’s long-term economic stability.
Agriculture is a critical sector that must play a decisive role in diversifying Guyana’s economy. By investing in agriculture, Guyana can reduce its reliance on oil revenue, boost its economic resilience, and create new socioeconomic growth and development opportunities.
A critical appraisal of Guyana’s agriculture sector requires retrospection, incorporating the colonial occupancy, the plantocracy, the enslaved labor force drawn from the African transatlantic slave trade, and the indentured laborers from East Asia. Guyana has had a long history of agriculture, with sugar as king. However, it was recently reported that The Guyana Sugar Corporation (GuySuCo) has set one of its lowest production targets in years. The target for the 2023 first crop has been set at 16,000 tons. Last year’s first crop had a production target of 20,261 metric tons, but the corporation only managed to produce 13,076 metric tons of sugar. The era of sugar is over. Despite these challenges, agriculture still has enormous potential in Guyana. The country’s fertile soil and favorable climate make it an ideal location for various crops, including rice, which accounted for approximately 9% of the country’s 2020 exports, fruits, vegetables, and spices. There is also significant potential for livestock production, particularly in the poultry and dairy sectors.
Despite its potential, the agricultural sector in Guyana faces several challenges. One of the most pressing is the need for more infrastructure. Many farmers in Guyana need access to basic infrastructure such as roads, irrigation systems, and storage facilities. Otherwise, this makes it difficult to transport goods to market and store them properly, leading to significant losses. Another challenge facing the agricultural sector in Guyana is the need for more access to credit. Many small-scale farmers in the country need help to access the financing they need to invest in their farms and improve their productivity.
In a sense, the privileging of the colony’s plantation sector, above others, undermined Guyana’s small-scale farming through the lack of financing and the development of necessary supporting infrastructure for optimal production. Over a century later, the small farming sector faces real financing challenges and climate change. Senior lecturer at the University of Guyana’s Faculty of Agriculture and Forestry, Dr. Elroy Charles, has suggested that early warning systems are necessary for farmers to implement measures to mitigate climate change, even as they consider diversifying. He also believes that effective zoning is needed for agriculture, housing, and mining, as these intersect with increased agriculture production. In the meantime, the agriculturalist offered that small farmers require assistance with low-interest rates through a facility such as the now-defunct Guyana Agricultural Industrial Bank (GAIBANK).
Sustainable farming practices are crucial for the long-term health of the agricultural sector in Guyana. These practices help to preserve the country’s natural resources, improve soil health, and reduce the use of harmful chemicals. Oil revenue will be crucial in supporting sustainable farming practices in Guyana. By investing in research and development, the government can catalyze the identification and promotion of sustainable farming practices appropriate for Guyana’s unique climate and soil conditions. Additionally, by funding training and education programs, the government can help farmers adopt these practices and improve their productivity.
Agro-processing and value-added agriculture can also significantly boost the profitability of the agricultural sector in Guyana. By processing raw agricultural products into finished goods such as juice, jams, and sauces, farmers are likely to capture more of the value of their products and create new growth opportunities. Cheaper electricity—soon to be powered by natural gas and hydro—is essential for an internationally competitive food processing industry. Additionally, the government can create a favorable regulatory environment for the agricultural sector. This includes policies that promote land tenure security, protect the environment, and provide industry investment incentives.
Collaboration between the private and public sectors is crucial for supporting the agricultural sector in Guyana. The private sector can play a key role in investing and providing technical expertise. Additionally, collaboration between farmers is crucial for improving productivity and profitability. Farmers can reduce costs and improve their bargaining power by forming cooperatives and sharing resources.
A country’s resource wealth does not necessarily guarantee national development. But oil brings hope. Guyana’s oil wealth can transform the country’s economy, but it poses significant risks. Diversifying the economy beyond oil revenue is crucial for long-term economic stability, and agriculture has the potential to play a vital role in this diversification.
However, the agricultural sector in Guyana faces significant challenges, including, critically, a need for more infrastructure and access to credit. Oil revenue will be crucial in addressing these challenges and supporting development as a new agricultural sector emerges that centers its role alongside the oil and gas industry.
Dr. Carolyn Walcott is a media and communications educator and scholar with a diverse background in journalism education, international communication, and media development. She received her undergraduate degree in Communication and her Graduate Diploma in International Studies at the University of Guyana. She completed her M.A. in Communication and Development at Ohio University and her Ph.D. in Communication at Georgia State University. Her research agenda focuses on media pedagogy and practice, national identity, rhetoric, and political communication.
Dr. Terrence Richard Blackman is a member of the Guyanese diaspora. He is an associate professor of mathematics and a founding member of the Undergraduate Program in Mathematics at Medgar Evers College. In addition, he is a former Dr. Martin Luther King Jr. Visiting Professor at MIT and a member of The School of Mathematics at The Institute for Advanced Study. He previously served as Chair of the Mathematics Department and Dean of the School of Science, Health, and Technology at Medgar Evers College, where he has worked for more than twenty-five years. He graduated from Queen’s College, Guyana, Brooklyn College, CUNY, and the City University of New York Graduate School.
Media Advisory: Guyana Business Journal & Caribbean Policy Consortium hold a webinar on Transforming Guyana: Guyana and Her Diaspora.

June 11, 2022
MEDIA ADVISORY:
Guyana Business Journal & Caribbean Policy Consortium hold a webinar on Transforming Guyana: Guyana and Her Diaspora featuring Mr. Arthur Deakin, Dr. Vibert Cambridge, Dr. Lear Matthews, and Ms. Rosalinda Rasul.
Recording Available Here:
Panelists:
Arthur Deakin, Energy Practice Co-Director, American Market Intelligence (AMI)
Dr. Vibert Cambridge, Professor, Media Arts & Studies, Ohio University
Dr. Lear Matthews, Professor, Department of Community and Human Services, State University of New York, Empire State College.
Ms. Rosalinda Rasul, Head of Diaspora Unit, Ministry of Foreign Affairs & International Cooperation Guyana
Moderators:
Dr. Terrence Blackman, Medgar Evers College at the City University of New York, Guyana Business Journal (Moderator)
Dr. David E. Lewis, Caribbean Policy Consortium & Manchester Trade Ltd. Inc. (Moderator)
Key Quotes:
- “… the size and and the scale and the speed of the development and discovery of these resources we haven’t seen it in anywhere else in recent times, I. think 50 of the total offshore resources discovered in the entire world have been in Guyana since 2015 so this has been really incredible and with this excitement it’s also important to take a step back, it doesn’t mean that Guyana is going to continue finding resources at this pace I mean it would be nice if they did but it’s it’s unlikely so it’s really taking advantage of this investor momentum and this desire for oil and gas right now from the entire world to capitalize on getting the investment necessary to develop this this energy sector, setting the right framework, being as transparent as possible to ensure that investors feel safe coming into Guyana, that is what’s going to be needed to really capitalize on all these sources…” – Arthur Deakin
- “…objective of the political system of the state is to establish an inclusionary direct democracy by providing increasing opportunities for citizens and their organization in the management and decision-making processes of the state with particular emphasis on those areas of decision making that directly affect their well-being it is saying that we’ve got to have a national conversation a more participatory thing it is asking for a shift in governance a shift in paradigm” – Dr. Vibert Cambridge
- “..resentment between guyanese who remain and those in the diaspora must end.” Dr. Lear Matthews
- “…we were more focused on getting a lot of work done and putting structures in place… absolutely no one in the diaspora is prevented from coming to Guyana or engaging the unit here in terms of their interests…” – Rosalinda Rasul
Executive Summary
Guyana discovered offshore oil reservoirs in 2015, and the first barrel of oil was produced in December 2019. Guyana’s new oil sector will transform the structure of the economy, including boosting Guyana’s export earnings. Guyana has been here before with the exploitation of its other natural resources, but this has not translated into significant benefits for the people of Guyana. This time could be different, with Guyana’s GDP per capita expected to increase from US$6,953 per capita in 2020 to US$15,153 per capita in 2023, and the country could become the world’s largest oil producer in per capita terms by 2030. However, if the benefits are to be equitably distributed, significant investment in human capital and physical infrastructure is required, including within the hinterland and rural areas.-Dr. Justin Ram.
How do we catalyze the role of the Guyanese Diaspora in this journey?
Terrence Blackman, Ph.D.
Founder & CEO Guyana Business Journal
Email: terrence.blackman@guyanabusinessjournal.com
Dr. David E. Lewis
Founder and Co-Chair, Caribbean Policy Consortium
Vice President
Manchester Trade Ltd. Inc.
International Business Advisors
2200 Pennsylvania Avenue NW – 4th Floor
Washington, DC 20037
Email: DavidLewis@ManchesterTrade.com
Web: http://www.ManchesterTrade.com
Skype: ManchesterTrade.Lewi
To Charrandas, or not to Charrandas? The Socio-economic & Political Forecast for Guyana 2019: Economic Growth & Political Uncertainty.
To Charrandas, or not to Charrandas?
by
Dr. Carolyn Walcott & Dr. Terrence Blackman
This weekend the GBJ looks at the prospects for Guyana in 2019. Two weeks ago, GBJ writer Dr. Carolyn Walcott visited Guyana for a few days to take the temperature of Christmas at home before the big day. As expected, the city was abuzz with activity; traffic was jammed at almost every corner, and business seemed bright! GBJ walked down Regent Street, beginning our trek from Albert Street and ending at the corner of Orange Walk. There was scarcely room to walk. Merchandise spilled onto the pavements, and shoppers deluged vendors with purchases and inquiries. Pedestrians and motorists seemed to merge into a single mass consumed with the hype that is often associated with Guyanese Christmas. There were many bargains to be had, and businesses, particularly the retail businesses, seemed to be doing well.
Christmas is typically the largest economic stimulus for many nations worldwide, as sales increase dramatically in almost all retail areas. The GBJ, in a future report, will quantify the monies generated during the 2018 holidays. It will also estimate the percentage of the retail industry’s total sales in the year that is generated at Christmas, and the increase in employment typically needed to support the Christmas season.
On our walk through the city, the GBJ noted a few striking social changes to the city’s holiday atmosphere. Spanish is now a language frequently spoken by store attendants, and we noted, with interest, the deluge of Chinese enterprises that permeate the fabric of the new business landscape of Guyana. However, business appeared good for everyone as the Guyanese prepared for the Christmas holidays.
On Thursday, December 13, the GBJ attended the University of Guyana’s Press launch of its first publication. Entitled “Dynamics of Caribbean Diaspora Engagement: People, Policy, Practice,” the book is an output of the Diaspora Conference, which was held in June 2017. During the discussions, the issue of a business takeover by non-Guyanese emerged as both a question and a concern. However, it was quickly addressed by the Head, Office of Migration, Department of Citizenship, at the Ministry of the Presidency, Aubrey Norton. Norton assured the audience that Government was conscious of this phenomenon and remained committed to ensuring that Guyanese, including those abroad, received the appropriate incentives and the necessary support to develop and grow businesses.
The GBJ also noted, during its visit, the evident increase in international business interest in Guyana. Guyana’s impending oil future largely drives this activity. To assess the level of engagement of the citizenry in this regard, the GBJ held several brief conversations with a range of citizens, in particular, with those engaged in small businesses. Our conversations reveal a mix of optimism and uncertainty as many citizens remain unaware of how they can tap into the oil business. Many lack the expertise or access to expertise to develop their products and services to target inbound investors and external markets. One hairdresser opined that while Guyana’s business environment will likely receive a significant boost with oil, she doubts that ordinary citizens will reap any real socioeconomic benefits. Another citizen, a taxi driver frequented by GBJ reporter Carolyn Walcott, is no longer plying the Stabroek Market area for passengers. He now relies exclusively on driving Exxon Mobil employees to and from one of the worksites daily for substantially more than what he received waiting for passengers daily. “Life is better for me already,” the taxi driver beamed as he boasted of making over GYD 200,000 per month using far less effort. An academic, however, was less optimistic about the future. She shared that while the country was likely to advance economically, she was concerned that allocating resources toward basic infrastructure would likely not be prioritized. In a subsequent conversation with an official within Guyana’s energy sector, they noted that such infrastructure, i.e., improved education, roads, and hospitals, are all essential components of an emerging national strategic plan. That plan, according to the official, will be a blueprint for forecasting and visioning not only for the business environment but for Guyana’s sustainable development beyond oil.
GBJ returned to NYC on Dec 17. As we were preparing this story, news broke on Friday, December 21, 2018, that Guyana’s APNU/AFC coalition government had fallen after the success of a no-confidence vote in the National Assembly. A general election is likely in ninety (90) days. This was almost two years before President David A. Granger’s constitutional term is complete.
The collapse comes less than four years after the APNU/AFC Coalition, promising a new style of inclusive politics, defeated the PPP/Civic party that had held power for almost a quarter of a century. The ruling APNU/AFC coalition lost the no-confidence vote after the switch in the allegiance of a single lawmaker, Charandass Persaud, an Indo-Guyanese MP, belonging to the junior party, The AFC, in the coalition.
The APNU/AFC coalition had indeed been very slow in putting together a cohesive and coordinated framework to prepare the country for the first commercial production of oil, scheduled in 2020. Still, the success of the no-confidence vote has shocked all stakeholders, and it has completely rearranged the political landscape of Guyana.
This vote is likely to exacerbate the ethnic and racial insecurities that are endemic to the Guyanese socioeconomic, political, and cultural landscape. The two main political parties in Guyana, the PNC and the PPP, have traditionally and continue to be based along racial lines: one, the PNC, drawing support from the descendants of Africans brought to Guyana by the Dutch in the 17th century, and the other, the PPP, from the descendants of the Indians brought by the British a couple of centuries later.
Guyana gained its independence from Britain in 1966. In the first three decades of independence, the Afro-Guyanese-based PNC political party controlled the government. In 1992, the Indo-Guyanese party, PPP, gained the upper hand in the country’s elections. It controlled Parliament and the presidency until it lost elections to the APNU/AFC coalition in 2015. The PNC is the major party in the APNU/AFC coalition. This period of Indo-Guyanes rule led to widespread resentment among Afro-Guyanese, who were shut out of government and business, just as the Indo-Guyanese said they were before coming to power in 1992. Many Afro-Guyanese see this no-confidence vote as an unfair and to some extent, an underhanded attack on the Afro-Guyanese government. These feelings are being amplified because of its timing which coincides with the treatment for Non-Hodgkin Lymphoma in Cuba of the seventy-three-year-old President Granger.
There are deeper issues here that will be explored in future contributions to the journal. How does Guyana escape its racial insecurity trap? Evidently, both the Afro and Indo Guyanese and other communities, most notably the Amerindian community, need to be more effectively integrated into the governing apparatus. At the core, is our unchallenged but as yet unproven assumption that our political arrangement, i.e., (the British model of) parliamentary democracy, best serves developing countries in general and Guyana in particular. The literature reveals very scant evidence of its success in multi-racial and multi-ethnic contexts.
“Most experts on divided societies and constitutional engineering agree on several points. First, they agree that deep ethnic and other societal divisions pose a grave problem for democracy and that, ceteris paribus, it is more difficult to establish and maintain democracy in divided than homogenous societies. Second, the experts agree that the problem of ethnic and other deep divisions is greater in countries that are not yet democratic or not fully democratic than in well-established democracies.” — Arend Lijphart[1]
[1] Lijphart, Arend. 2002. “The Wave of Power-Sharing Democracy” in Andrew Reynolds, ed., The Architecture of Democracy. Oxford: Oxford University Press, p. 37.
We note here that the class-based commonality that allowed Cheddi Jagan and Linden Forbes Sampson Burnham to form the PPP quickly collapsed at its first test. The same is true of the political arrangements of Fiji, Malaysia, Indonesia, etc. The steady line of doomed third parties, essentially class-based structures, suggests that addressing ethnic insecurity is the predominant political obstacle to harmonious development. It is unlikely that political arrangements that fail to confront this dimension will succeed. We observe that Malaysia, and to a lesser extent Singapore, have explicit ethnic quotas and references in their constitution, institutional structures, and political representations arrangements.
We are reminded at this juncture of the mythical, last “grand bargain,” which was rumored to have been under very serious consideration between Dr. Cheddi Jagan and President Linden Forbes Sampson Burnham at the time of his death in August of 1985. The rumored deal was supposed to have resulted in the appointment of Dr. Jagan and others in a Government of National Unity, which would have extended for an indefinite period. It should be noted for the record that Dr. Jagan had consistently made calls for a government of National Unity.
The GBJ strongly believes that the success of the no-confidence motion and its aftermath, coupled with the emerging oil economy, has once again provided the key stakeholders with the opportunity to act boldly to seize a “grand bargain” that would see a genuine Government of National Unity preside over the emerging oil economy for the next six years. The broad outlines of the marriage of the economic, security, and environmental bonafides of the three key ethnic groups and their potential impact on Guyana’s social cohesion are clear. The GBJ believes that a movement of this type in the political sector now would provide the impetus for robust economic growth in 2019.
In closing, we are encouraged by the many appeals for calm among all parties involved in moving Guyana forward. The GBJ believes that Guyana’s national stability is paramount. We believe that political instability leads to a climate of uncertainty which undermines possibilities for business growth in Guyana. We believe that the Guyanese institutions, in particular its courts, are strong and that they will rise to the challenge of adjudicating the matters which will come before them during this period. We urge the leadership on both sides of the aisle to maintain a spirit of dialogue and respect for our democratic practices and the rule of law. Finally, we wish you and your families a peaceful, productive, and above all, prosperous 2019.
