In a recent viral video clip, Guyana’s President Irfaan Ali asserts the nation’s stance on its newfound oil reserves, cutting short an interviewer’s inquiry about the impact on the country’s climate. Emphasizing Guyana’s commitment to environmental preservation, Ali highlights the significant carbon storage within the nation’s forests, totaling 19.5 gigatons. He firmly rebuffs any perceived condescension from developed nations regarding climate change policies.
Guyana finds itself amidst an energy boom, buoyed by the discovery of 11 billion barrels of oil-equivalent resources off its coastline. This newfound wealth holds the promise of prosperity for a nation that has historically grappled with poverty, with over 40% of its population living below the poverty line. Since commercial drilling commenced in 2019, Guyana has experienced rapid economic growth, emerging as one of the world’s fastest-growing economies.
With the potential to become one of the largest per-capita oil producers in the coming years, Guyana stands at a pivotal juncture in its economic trajectory. While the promise of newfound wealth is undeniable, President Ali’s assertion of Guyana’s environmental stewardship underscores the delicate balance between economic development and environmental sustainability on the global stage.
India shares a deep historical bond with Guyana, where nearly 40% of the population traces its roots back to Indian and South Asian origins. These communities are descendants of Indians who were once subjected to indentured labor by British colonizers. Hinduism has emerged as the nation’s second-largest religion, reflecting the cultural influence of its Indian heritage. Against the backdrop of Guyana’s newfound oil and gas wealth, President Ali has signaled a strong stance against perceived Western dominance over the nation’s resources.
Prime Minister Narendra Modi has positioned India as a leader within the ‘Global South’, seeking to strengthen ties with countries boasting significant expatriate populations. While major Western corporations like ExxonMobil, Halliburton, BP, and Royal Dutch Shell dominate much of the exploration and extraction in Guyana, India is making strides to engage more actively. In January, India and Guyana inked a five-year memorandum of understanding, paving the way for Indian companies such as ONGC Videsh to participate in various aspects of the oil industry, including exploration, production, and refining.
India’s involvement in Guyana extends beyond the energy sector, as evidenced by recent developments such as the delivery of two Dornier Do-228 aircraft by Hindustan Aeronautics Ltd to the Guyana Defence Forces. This initiative, part of a ‘line-of-credit’ agreement, underscores India’s commitment to fostering deeper bilateral ties beyond mere economic interests. As India seeks to satisfy its growing energy demands, it is imperative that it reciprocates by assisting Guyana in enhancing its healthcare, education, transportation infrastructure, and military capabilities. By leveraging their shared cultural and historical connections, Georgetown and New Delhi have the opportunity to evolve into true partners in progress, strengthening their relationship for mutual benefit and prosperity.