Guyana is putting measures in place to prevent its rapidly expanding petroleum sector from creating excessive dependence on oil and weakening the wider economy, Senior Petroleum Coordinator at the Ministry of Natural Resources Dr. Bobby Gossai Jr. has said.
Gossai raised the issue during the Energy Perspectives podcast while discussing Guyana’s economic transformation and the need to ensure that petroleum wealth is used to develop the country beyond the oil industry.
He pointed to the International Monetary Fund’s (IMF) preliminary Article IV report, which examined developments in Guyana’s economy, including the continued growth of the non-oil sector.
Gossai said the report’s recognition of Guyana’s efforts was significant, particularly as the country continues to receive substantial revenues from petroleum production.
He said the Government is implementing systems and programmes aimed at ensuring Guyana does not become overly reliant on its natural resources.
Gossai said these measures are intended to prevent Guyana from becoming what he described as a resource-dependent economy that is “susceptible to the Dutch disease.”
Dutch disease is an economic condition in which a major boom in one sector, particularly oil, gas or another natural resource, causes other parts of the economy to become less competitive.
Large inflows of foreign currency from resource exports can strengthen a country’s currency, making locally produced goods and services more expensive relative to imports and potentially drawing investment and workers away from sectors such as agriculture and manufacturing.
For Guyana, the concern is that rapid growth in the petroleum sector could overshadow the non-oil economy if oil revenues are not strategically managed.
Gossai, however, said the Government’s intention is not to allow petroleum to become the country’s permanent economic foundation.
He stressed that Guyana’s hydrocarbons should instead be used to create opportunities and resources for development across other sectors.
“Oil is not the end product. The hydrocarbon sector is not what we will depend on. It is the catalyst,” Gossai said.
According to him, petroleum wealth should provide the “momentum, the drive and the resources” needed to expand the wider economy.
He identified agriculture, tourism, housing and infrastructure among the areas that can benefit from the revenues generated by the petroleum sector.
Gossai also pointed to newer areas of economic activity that Guyana can develop, including the orange economy, blue economy, data-driven economy, artificial intelligence and information and communications technology.
His comments reflect the Government’s stated objective of using petroleum revenues to build economic capacity beyond oil production.
The Senior Petroleum Coordinator said the country must also recognise that its petroleum resources are finite.
“It is a finite resource,” he said, noting that while Guyana will continue to explore for additional resources within its geographic zone, the existing petroleum wealth should be used strategically.
Gossai said the objective is to use petroleum as a “pillar of growth and development”, rather than allowing the economy to become dependent on the sector.
He also pointed to agriculture as a particularly important non-oil sector.
When asked which industry outside of oil excites him most, Gossai identified agriculture, drawing on his previous experience working at the Ministry of Agriculture and his understanding of the sector.
He described agriculture in terms of both power and food, highlighting its importance to Guyana’s broader economic development.
Gossai’s comments come as Guyana continues to expand its petroleum production while simultaneously pursuing investment and development across other sectors.
