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Dr. Vishnu Bisram

Exxon’s Important Role in Green & Cheaper Energy in Guyana

December 17, 2024
Remembering Aunty Betty of Port Mourant, Guyana

Remembering Aunty Betty of Port Mourant, Guyana

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Dr. Vishnu Bisram

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    Dr. Vishnu Bisram

    Do Guyana Governments respond to Objective, fair, balanced editorials? The attack on Hindus and Hinduism in Guyana

    Dr. Vishnu Bisram

    Guyana must Seek American Assistance to deter Venezuela’s Aggression & Halt May 25 Election

    Dr. Vishnu Bisram

    Indian Caribbean Diaspora Support Surgical Strikes against terrorists; backs PM Modi’s tough response

    Dr. Vishnu Bisram

    Will Azruddin and Glenn Team up in Guyana?

    Dr. Jerry Jailall

    The Adrianna “scrapehead” riots must be a wake-up call to Indo-Guyanese as we race towards the 2025 elections

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    Dr. Vishnu Bisram

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    Dr. Vishnu Bisram

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Exxon’s Important Role in Green & Cheaper Energy in Guyana

by Dr. Vishnu Bisram
December 17, 2024
in Columns
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Dr. Vishnu Bisram

Dr. Vishnu Bisram

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Guyana has minimal carbon emissions – carbon emission is the outcome of using fossil fuels (petroleum or oil) to generate electricity and power vehicles and for cooking. Currently, almost all of Guyana’s electricity is produced from burning diesel and wood. Burning gas (for cooking or generating power) also emits carbon but significantly less than diesel, gasolene, kerosene, wood, and charcoal. The release of carbon from burning fossil fuels warms up the earth’s atmosphere and add to pollution and bad air quality. Every effort should be made by all countries to reduce their carbon footprint, the amount of carbon emitted.

Guyana can get to near zero emissions by turning to green energy (solar, wind, and gas) which is the pathway to decarbonise the country. Exxon Mobil (EM), which produces oil, has an important role in moving the country towards green energy by making available clean gas (from oil production) to fire electrical plants and even for domestic use. It is noted that gas driven energy is known to be cheaper than diesel generated electricity. And right now, high diesel and wood burning energy cost makes it challenging to drive domestic offtake industries. Cheaper gas generated electricity is urgently needed. This is where Exxon’s presence in producing oil off shore is so critical for generation of cheaper energy in Guyana to facilitate industrial development.

Currently, Exxon is producing about 650,000 bpd oil with an additional 200K next year and by 2027 some 1.2M bpd. Aside from earning revenues, production of oil necessarily involves gas which is trapped and re-inserted back into wells or the oil reservoir. The more oil produced, pulled up from under the ocean floor, the more gas is available, coming up with the oil. The gas can be monetized or used for other purposes or even sold. Exxon has agreed to capture and supply some of the gas to power an electrical plant at Wales to produce some 300 MW of energy. Exxon signed an agreement to transport the gas via pipe on the ocean floor to West Coast (Vreed-en-Hoop area) from where it is further transported by pipes on land to Wales to supply gas to the power station. The media reported that Exxon completed its part of the project to supply gas over six months ago, awaiting to tie in the gas to storage facilities at Wales that will supply the power station to generate cheaper power than currently obtains. Instead of abusing or attacking the oil giant and telling it to pack up and leave, Exxon should be encouraged to produce more gas for Guyana’s industrial development.

That gas fired power project at Wales was supposed to be up and running by end of 2024, but the completion of the project was mired in a dispute over US$50 M that is in arbitration. The dispute is expected to be settled early next year that would result in the completion of the power station. Once that is ready, Exxon will begin supplying gas to generate electricity. Gas powered energy produces significantly less carbon emission than diesel. The gas fired power plant does not mean that Guyana will end diesel generated power. As standard of living has increased over the years, demand for power has been growing while supply has not been keeping pace. That is why there has been blackouts or rolling supply of electricity. GPL has not been able to keep up with rising demand. Diesel plants and two heavy-oil fired power ships have been contracted to generate electricity to meet demand. And even that may not be sufficient. At any rate, ship floating power generating plants are not an efficient way to produce electricity. And they leave behind a lot of carbon footprint. Gas powered plants are more efficient with minimal carbon emission. It is also noted that gas energy cost is substantially less than diesel generated energy. Such gas-powered plants would lower the cost of energy that would make it attractive to private investment for petroleum and gas related products like fertilizer, creams, etc. That is why the Wales power generating plant and Exxon’s supply of gas is critically important to the economy.

Exxon can supply gas for multiple power generating plants and even for (bottling) of gas for domestic use (cooking) and perhaps even exporting gas if available in large quantity, keeping in mind that gas must also be re-injected into the oil reservoir. The daunting economics of financing such a project may be an impediment for Guyana but not for Exxon to finance such a green energy project. Government should consult with Exxon on this emerging sector (economics of bottling gas). And another gas-fired power generating plant, perhaps on the Corentyne, should be immediately considered. And the oil company should be nudged into increasing production of oil and gas that will result in greater revenues for Guyana.

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Dr. Vishnu Bisram

Dr. Vishnu Bisram

Dr. Vishnu Bisram is Guyanese born who received his primary and secondary education in Guyana and tertiary education in the US and India. He is a holder of multiple degrees in the natural sciences, social sciences, and education. He taught for over forty years in the US. He is a specialist on the Indian diaspora traveling globally to research and write about Indian communities. He was among a small group of freedom fighters in America that combated the dictatorship in Guyana. Dr. Bisram organized many conferences on the Indian diaspora and lectured at several universities. He has published extensively on the diaspora and on various other topics.

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