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Energy consultant vouches for ExxonMobil-Guyana deal

January 30, 2021


Much has been written in recent years about the sweeping environmental benefits natural gas has provided to the United States since the advent of the Shale Revolution at the end of the 20th century. While renewables like wind and solar have played a role, there is no question that the U.S. has been able to turn back the clock on its greenhouse gas emissions to levels not seen since the early 1990s thanks mainly to the ability of the country’s abundant and cheap natural gas to displace coal in power generation.

Indeed, according to the U.S. Energy Information Administration, coal-fired power generation has been cut in half since 2010, while power generated by natural gas generation has risen by about 70%. The result is that, as the Biden Administration takes the U.S. back into participation in the Paris Climate Accords, the country has already met its goals under that agreement through 2025. 

Understanding that they have little case to be made related to the environment, opponents of oil development in the country have focused their opposition to the Wales project by making specious claims about the finances of the country, which stands to benefit immensely from Stabroek and other offshore oil developments. Tom Sanzillo, Director of financial analysis at the Institute for Energy Economics and Financial Analysis (IEEFA) recently told a public hearing that “…I have to be frank about this, the way the contracts were negotiated for this oil endeavour gives me no confidence that the country has any ability to negotiate the best price for a pipeline and other infrastructure to bring gas to shore.” 

[David Blackmon]

More: ExxonMobil Natural Gas Will Help Guyana Meet Its Climate Goals

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