'Black gold' for Guyana and Suriname, a blessing or curse?

'Black gold' for Guyana and Suriname, a blessing or curse?

Leaders of Suriname and Guyana say newly-discovered oil reserves must be tapped to help better living conditions in their countries, among the poorest in South America
Leaders of Suriname and Guyana say newly-discovered oil reserves must be tapped to help better living conditions in their countries, among the poorest in South America. Photo: Patrick FORT / AFP
Source: AFP

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Emerging as potential oil powers while the world seeks to wean itself off planet-warming fossil fuels, poverty-stricken South American neighbors Guyana and Suriname say they have to cash in while they can.

The former Dutch colonies are among the world's most tree-covered countries, hosts to the so-called forest "lungs" that sequester massive amounts of planet-warming carbon dioxide.

Their economies and populations small, the countries have traditionally emitted little CO2 or other greenhouse gasses from fossil fuel use -- in fact Suriname is one of only three carbon-negative countries in the world and Guyana claims carbon neutrality.

But some fear this could change with the recent discovery of rich offshore oil deposits in an area known as the Guyana-Suriname Basin.

Read also

Lesotho's mountain jockeys race in the mist

Guyana, a country of 800,000 people, was recently found to have proven reserves of at least 10 billion barrels of oil, likely much more according to experts.

This makes it the country with the highest reserves per capita in the world -- which consumes 99.4 million barrels of oil per day.

PAY ATTENTION: Follow Briefly News on Twitter and never miss the hottest topics! Find us at @brieflyza!

Guyana claims to already be carbon neutral, due to its small population and economy coupled with lush forests, such as in Kaieteur National Park
Guyana claims to already be carbon neutral, due to its small population and economy coupled with lush forests, such as in Kaieteur National Park. Photo: Patrick FORT / AFP
Source: AFP

Early assessments suggest the reserves of Suriname, a country of 600,000 people, may not be far behind.

"It will be hard to remain carbon neutral as a country (involved in the) petroleum sector," economist Steven Debipersad of the Anton de Kom University in Suriname's capital Paramaribo, told AFP.

The projected $10 billion Suriname stands to make in the next 10 to 20 years, will likely bring economic growth at the cost of the environment, he said.

The country's GDP today is about $3 billion.

Read also

Thugs and tolls burden beekeepers in war-scarred C.Africa

Hungry 'every day'

Their presidents insist Guyana and Suriname cannot be expected to turn their backs on a chance to fill their countries' coffers and raise the quality of life for their people.

The countries are among the poorest in South America, with vast swathes of their populations living without electricity, clean water or access to adequate health services.

In a Paramaribo ghetto named Texas, dirty sewer water flows among dilapidated wooden homes.

Recent surveys have shown that oil fields off the coast of Suriname and Guyana could contain some of the highest per capita reserves in the world
Recent surveys have shown that oil fields off the coast of Suriname and Guyana could contain some of the highest per capita reserves in the world. Photo: Ranu Abhelakh / AFP
Source: AFP

Resident Edison Poekitie, a 23-year-old musician, scrapes by on no more than $50 a week. Does he go hungry?

"Every day!" he told AFP. "It's hard out here, really hard."

The community, he added, needs "water pipes, cables, new roads without potholes, schools, better houses, playgrounds..."

Poekitie said he hoped the government would spend the oil money "wisely," a sentiment echoed by 45-year-old food truck owner Brian Braithwaite in a poor neighborhood of the Guyanese capital Georgetown.

Read also

The coups, the Judge and 'The Trial': Burkinabe bar pokes fun at chaos

"Hopefully they do something so that... people (who) live on the street can do better," Braithwaite said.

'Oil curse'

Both presidents have vowed to make judicious use of their windfall petroleum profits, though some are worried that will undercut the sovereign wealth funds set up to guard some money for future generations.

"We are quite aware of the oil curse," Suriname President Chan Santokhi told AFP, alluding to neighbor Venezuela and other resource-rich countries such as Angola and Algeria that were unable to turn oil wealth into social and economic progress.

Local economists say the projected $10 billion Suriname stands to make will likely bring economic growth at the cost of the local environment and global emissions goals
Local economists say the projected $10 billion Suriname stands to make will likely bring economic growth at the cost of the local environment and global emissions goals. Photo: Patrick FORT / AFP
Source: AFP

"We... should also get the opportunity to benefit from the production of oil and gas and its income" to address a biting economic crisis "and help our people to have better lives," he insisted.

For his part, Guyanese President Mohamed Irfaan Ali wants to use the oil income to "create wealth for now, and future generations."

Both speak of using the money to diversify their economies with investments in agriculture, tourism, housing, education and health care.

Read also

Living in darkness: Poverty and pollution in oil-rich Congo

Eventually, "the oil and gas will be gone, but the food security should be guaranteed," said Santokhi.

Oil money for green energy

Oil extraction and refining are major contributors to greenhouse gas emissions.

Though they have historically emitted little, Suriname and Guyana are both deeply affected by global warming -- in the crosshairs of worsening tropical storms and of flooding from rising sea levels.

Presidents Santokhi and Irfaan Ali believe they can maintain their countries' carbon balances by using oil money to protect their forests and invest in green energy.

Defending the forests that cover about 87 percent of Guyana and 93 percent of Suriname is also economically sage: both countries can sell so-called carbon credits to polluters who need to offset emissions.

For Guyana, carbon credits are worth about $190 million per year, said Irfaan Ali.

Though they have historically emitted little, Suriname and Guyana are both deeply affected by global warming -- in the crosshairs of worsening tropical storms and of flooding from rising sea levels
Though they have historically emitted little, Suriname and Guyana are both deeply affected by global warming -- in the crosshairs of worsening tropical storms and of flooding from rising sea levels. Photo: Patrick FORT / AFP
Source: AFP

Monique Pool, director of the Green Heritage Fund of Suriname, is not convinced by the two-pronged approach.

Read also

Idled plants fuel German angst about de-industrialisation

"Carbon credit will give us more money faster than oil and gas and for longer because it will be sustainable," she told AFP.

In Georgetown, activist Christopher Ram agreed the oil should be left in the ground, expressing fear of exploitation by ruthless companies in the absence of "good governance."

Instead, "I would go to the international community and say: 'We are a small country, we've always been good to the environment, we want to stay that way... help us get the benefits we would have got with oil'."

But 53-year-old Cynthia Neel, who sent her daughter from Suriname to the Netherlands at the age of six for education and a chance at a better life, is hopeful of positive change.

"I hope that with the oil the children will no longer have to leave," she told AFP.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.