Venezuela criticizes Guyana; Trinidad supports US actions

Venezuela criticizes Guyana; Trinidad supports US actions

Guyana's upcoming general election, scheduled for September 1, is set to be a pivotal moment for the country's oil and gas future. The election will determine whether President Irfaan Ali's ruling People's Progressive Party (PPP/C) maintains its parliamentary majority amid the country's unprecedented oil-driven economic transformation and an escalating territorial dispute with Venezuela.

Ali's party has centered its campaign on energy sector expansion, unveiling ambitious plans anchored by the Gas-to-Energy project, which promises up to 50% reductions in electricity costs. The manifesto includes a second 300MW power plant at Wales and a ship-loading terminal for cooking gas exports to Caribbean Community markets. Powered by ExxonMobil's offshore discoveries since 2015, Guyana has achieved five consecutive years of double-digit economic growth, including a staggering 43.6% expansion last year [1].

However, the oil windfall has attracted unwanted attention from neighboring Venezuela, which has revived its historical claims to the Essequibo region. President Nicolas Maduro raised the stakes in May by staging elections for an Essequibo governorship within Venezuela's borders. Ali, who enjoys US backing, has responded forcefully to these provocations, taking the matter to the International Court of Justice [1].

Meanwhile, opposition parties argue that the infrastructure-heavy spending has failed to address everyday cost pressures or improve living standards for most citizens. 'A lot of our oil money is being wasted on projects that aren't achieving their objectives,' opposition leader Aubrey Norton told The Guardian [1].

The soaring cost of living remains a central grievance, with market vendors reporting that basic commodities such as rice have seen prices double within two years. Speaking to AFP, legal scholar Neville Bissember from the University of Guyana pointed out the distinction between economic growth figures and genuine development, arguing that infrastructure projects must be balanced with investments in housing, power generation, and healthcare to prevent Guyana from falling victim to the familiar trap of resource-rich nations that fail to prosper [1].

The PPP/C, which secured 33 of 65 National Assembly seats in 2020, remains favored due to strong support among Indo-Guyanese voters and opposition fragmentation. A recent WIC News poll suggests 60% voter support for the ruling party among over 200 respondents. Adding unpredictability to the race is mining magnate Azruddin Mohamed, who has entered as an independent challenger despite facing US sanctions for alleged corruption, gold smuggling, and tax violations [1].

If the ruling party is unable to secure a comfortable victory as projected, the country's hydrocarbons future may head down a notably different path. Three opposition parties have pledged to renegotiate Guyana's ExxonMobil contract for larger revenue shares, potentially altering the country's energy trajectory [1].

The election represents a crucial test of whether Guyana's oil wealth can translate into broader prosperity or remain concentrated among elites, with public sentiment on the hydrocarbons sector and the government's handling of the Essequibo dispute with Venezuela expected to have significant implications for the election outcome [1].

In a related development, Venezuela has criticized Guyana over the election, with reports of gunshots being fired from Venezuela at a boat carrying materials for Guyana's election. The incident occurred on the Cuyuni River in the contested and oil-rich Essequibo region, prompting a patrol boat to return fire [2].

Meanwhile, Trinidad and Tobago has expressed support for US actions in the region, with Prime Minister Keith Rowley stating that the US's stance on the territorial dispute is "in the best interest of the Caribbean community" [2].

References:
[1] https://www.marketscreener.com/news/guyana-election-on-september-1-set-to-shape-oil-and-gas-future-ce7c50d2d98cff21
[2] https://www.trtworld.com/world/article/ac7bb99848a4