Caribbean Community (CARICOM), Caribbean Energy Security Summit 2015, Goldman Sachs, Oil debt, Oil dependency, PetroCaribe, Small island economies, Venezuela
Caribbean Energy Security Summit – Washington D.C. – USA
January 26-27, 2015
Photo Credit: Caribbean News
Global oil prices rise and fall for all kinds of reasons. Credit or blame for the current fall goes to increased shale oil production, led by the United States. Contrary to what one would imagine, for small developing nations like Guyana and other member states of the Caribbean Community (CARICOM) that depend on oil imports to fuel their economies, the current low price is cause for concern.
Guyana, together with nine other members of the Caribbean Community, buys oil from Venezuela, South America’s largest oil producer. Under the PetroCaribe preferential payment program, members pay from 40 to 60 percent of the invoice value in cash upfront. The balance can be converted to a 25-year loan with interest rates from 1 to 4 percent. Continue reading