Guyana and Aberdeen: Lessons from Both, to Both

Energy (not just oil and gas) and agriculture link the North-East of Scotland and Guyana; let's make use of those links.

On 10 September this year I chaired the 6^th Aberdeen-Guyana Gateway, organised by Granite PR at the Norwood Hotel. I’ve been involved in these from the first one in 2018 when I was the British High Commissioner to Guyana and Brett Jackson from Granite PR proposed we do a Gateway to see where things might go. The goal was to show Aberdeen the opportunities that existed in what was then the new oil and gas market of Guyana – and to highlight to Guyanese companies the potential for partnerships in Europe’s energy capital.

6 years on from the first Gateway Guyana is a major oil producer, home of over 11bn barrels of oil equivalent, and on track to produce a barrel of oil per day, per citizen by 2026. Meanwhile the North Sea is going in the opposite direction – pushed that way by a Government that fails to understand what a ‘just’ transition means and how a drive to unrealistic ‘Net Zero’ goals risks economic problems for the UK. There is also the danger of a collapse in our energy security – something which should be front and centre of any government’s minds in current global circumstances.

This year’s Gateway used market updates to highlight the ongoing opportunities for Aberdeen and North-East companies in these times when export markets are ever more important. Companies based in this part of the world must explore these. Many already are – either as subcontractors to the big players such as Exxon, SBM and Technip, or on their own having set up joint ventures with Guyanese companies – as case studies presented at the Gateway showed.

But there is so much more that could, and should, be done. I know from my own interactions that there is a desire to link up with Aberdeen to use the region’s experience in the oil and gas sector to help – and to provide lessons learned (both good and bad). Aberdeen has, in my view, a clear role to play in Guyana’s future.

A Twinning arrangement already exists between Aberdeen and Guyana’s capital Georgetown. The Aberdeen and Grampian Chamber of Commerce has signed a MoU with its counterpart – the Georgetown Chamber of Commerce and Industry. These are small foundations that can, with some time and effort on both sides, be built on.

It is also important to note that it is not all about oil and gas. High on Guyana’s list of priority areas is agriculture and aquaculture. Guyana’s President – Dr Irfaan Ali – is determined to make Guyana the breadbasket of the Caribbean. What better place to help with this than the North-East? Indeed during the Gateway the Guyanese High Commissioner to the UK, Dr Raj Singh, held discussions with Scotland’s Rural College, The Hutton Institute, and the University of Aberdeen. Work is ongoing to follow-up on this with potential visits in both directions in the early stages of planning.

Guyana also recognises oil and gas has a finite future and that there is a need to support transition to renewables. In this regard the country (80% of which is covered by rainforest) is already a huge carbon sink.

Aberdeen can help here too – but only if there is a stable and just transition to allow the city and region to keep (and develop) skills. Making investment in the North Sea more difficult, punishing energy companies, and risking thousands of jobs is not the way to go. This is not what is happening elsewhere – Norway is the perfect example of that.

It is hugely welcome news that there has been a record number of bidders in the latest offshore wind round and that GB Energy will be headquartered in Aberdeen (although it is unclear exactly what that will bring – we have already seen talk of 1,000 jobs being reduced to 300). These are small positives, but are they enough?

Government actions risk the loss of 40,000 direct jobs, reducing tax income and impacting our supply chain – so vital for ensuring the delivery of energy transition.

We know that change needs to be made – climate change is real – and I certainly don’t dispute it is. But it needs to be done right and we shouldn’t assume others will follow our virtuous lead. Idealism does not overcome realism I’m afraid.

We do not enhance our own energy security by becoming dependent on those who may (or may not) remain our friends and we do not safeguard thousands of highly skilled jobs.

We need a pragmatic approach. One which sees the goal but also recognises we cannot get there tomorrow. Sometimes it is necessary to leave ideological dogma to one side when considering what is best.

The strength of Aberdeen and the North-East (and it’s ability to support a transition) will also be dependent on export markets such as Guyana. Luckily companies in Aberdeen have a potential head start here (as the Gateway showed).

However, there is always room for more such activity and there are, undoubtedly, opportunities.