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Saturday, February 22, 2014
Guyana is paying keen attention to the likely impact that political unrest in Venezuela might have on oil supplies under PetroCaribe, even as a renowned Economist warned about a spike in prices for poor Caribbean countries if the concessionary oil deal falters.
Foreign Minister, Carolyn Rodrigues-Birkett acknowledged that Guyanese authorities were keeping a close eye on the weeks of political upheaval against the administration of Nicolas Maduro and when asked whether Guyana has received assurances from Venezuela that oil supplies would remain intact despite the opposition-fuelled protests, she said this country was unlikely to be atop the agenda of the government at a time of unrest.
Currently, Guyana buys half of its fuel supplies from Venezuela and the remaining 50 percent from oil-rich sister Caricom nation, Trinidad and Tobago.
American Economics Professor, C. Fred Bergsten said the turmoil could negatively trickle down to Caribbean countries that have become dependent on cheaper oil in the short-term for long-term low-interest repayments. If PetroCaribe supplies are suspended or cancelled altogether, he warned that could spell doom for the virtually empty coffers of many tourism-dependent island nations.He recommended that Caribbean countries follow in the footsteps of Organisation for Economic Cooperation and Development (OECD) member states and establish an admittedly expensive fuel reserve.
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