The Tribune

EDITOR, The Tribune.

Methinks t’was Dante, that famous Italian satirist, who warned that –

“Fools rush in

Where angels fear to tread.”

Now whether this writer, in venturing into the arena of discussion on the above captioned “hot topic” may be conceived of an angel or a fool the reader may judge. Permit me then to make two caveats before proceeding to tackle it.

First and foremost, I have “no axe to grind”, and prospect of any benefit whatsoever from the development of a petroleum industry in The Bahamas. I know nothing about it or “BPC” other than what is published in the print media. In any event I am too poor to purchase shares in such a venture (even if made available to Bahamians) and, having long passed the biblical three score and ten, too old to be considered for any form of employment.

Secondly, while as a pastor of denominations which have been established for many years, this writer makes no attempt to speak on behalf of same as no statement has been made by its ecclesiastical officer.

Concisely, this communication is not to be construed as the lifting of a judge to defend the operation of foreign investors or advocacy for oil drilling in the pristine waters of The Bahamas, but the contribution of a Bahamian senior citizen to the ongoing debate re: “the pros and cons” of the development of a Bahamian Petroleum Industry. (Yes, it is a euphemism for “oil drilling”).

That tourism, financial services and fishing constitute the foundation of The Bahamian economy is well established. However, the ravages of hurricane Dorian and the devastating effects of COVID -19/ The Corona virus, have highlighted the fact that there is an urgent need for economic diversification. Without increasing population and major challenge, notary climate change, we cannot continue to put all of our “economic eggs” in the one basket of Tourism and fishing. It is in the light of this critical and urgent need for economic diversification that all debate on oil drilling in The Bahamas must be evaluated.

Now, it would appear that there are those who are so strongly opposed to an objective discussion that, in opposing same, overstate their case. For, it is submitted that an either/or sort of argument which pits the Tourism Industry in some economic conflict with a potential petroleum industry is neither realistic no reasonable!

Evidently, there are those who labour under the impression that it is virtually impossible for a small nation like The Bahamas to accommodate both a Tourism and Petroleum based economy.

There are, however, countries where this is the case. Two may be cited – the state of Louisiana and that most prospering northern nation, Norway. Much is to be learned by observing them.

For instance, it has been suggested that a single oil spill could virtually “wipe out” The Bahamian tourist industry. It is incredible that one oil spill could decimate tourism.

Several years ago there was a huge oil spill in the Gulf of Mexico, which was so extreme that it took three weeks to control it. That was off the coast of Louisiana. It did not prevent New Oregon from being a major tourist destination with major improvements in technology, oil pricing is not as dirty and polluting as in the past.

What is most disturbing is the fact that the exact conditions under which oil drilling is to take place are not known. It is essential that the people of The Bahamas know such details. This leads directly to the next topic – the potential economic benefit.

According to one of the advertisement contra oil drilling, it is suggested that the foreign investors and shareholders will get their share of the revenue first and then The Bahamas would get what’s left. WHAT? Suppose the price of oil were to sky rocket? Ya mean to tell me that these wealthy foreign investors with their already deep pockets would receive the lion’s share of these billions while the debt challenged Bahamian treasury would glean only the financial crumbs which fall from the rich man’s table? ( See Luke 16:19 - 31) GOD FORBID!

Now, in discussing the potential economic benefits of Bahamian petroleum, it is most instructive to look at the other economic unit cited – Norway.

When I studied in Aberdeen, Scotland, about thirty years ago, that city was prospering as a result of oil drilling in the North Sea. I learned that being close to the UK, Norway had greatly benefited from the oil industry.

It was explained to me that Norway had a strict, uncompromising policy – that 50 percent of the gross proceeds of the oil industry be paid to the nation. To put it plainly, the position may be stated thusly, “Yes, you can go ahead and invest in petroleum production. But remember half of whatever amount is earned, half is ours!” As a result of this policy, Norway is experiencing prosperity with many billions of dollars in reserve. Indeed, it is estimated that this mountain of money, constantly growing, will continue to earn financial dividends for the nation long after the offshore oil wells are exhausted or have become uneconomic. The development of this oil rich industry has not negatively impacted Norway’s traditional Tourism Industry. Now, coming back to The Bahamas as pointed out, let us consider the economic aspect using The Norwegian module. Let us suppose that a petroleum industry were to earn gross revenue of one billion dollars per annum (several years ago, EXXON, largest oil company in the world announced a profit of ten billion dollars. So, a billion dollars is a conservative estimate).

Well, using the Norwegian method five hundred million dollars would go straight into The Bahamian Treasury. With that kind of economic windfall, the economy of our nation could benefit in four significant ways:

I. Provide funding to help in the payment of the salaries of its huge company of civil or public servants and capital protects – roads, bridges, harbour, etc.

II. Increase reserves of hard currency, assuring the stability and parity of The Bahamian dollar with The U.S. dollar.

III. Reduction of the burgeoning national debt.

IV. Development of a national emergency insurance budget to prove funding for repairing damages caused by hurricane waves or oil spills!

It is submitted, therefor that the challenges facing The Bahamas is NOT whether we can have a tourism or petroleum economy, but whether it is possible for us to have a tourism AND petroleum industry!

The position advocators have may be simply stated. “While ideally speaking, The Bahamas should be able to survive without oil drilling; in view of several economic challenges of Hurricane Dorian and COVID-19, the demonstrated fragile nature of Tourism, and most of all, the urgent need for a fresh source of revenue; the development of a Bahamian petroleum industry, neither in competition with or substitutionary to our foundational tourist industry, but compatible with and complementary to it, certainly merits most careful considerations. QED!”

With every earnest prayer and good will as we prepare to celebrate the birth of Christ, our Saviour and brace for the challenges of the New Year.

The Rev Dr Joseph Emmette Weir, DM

Freeport, Grand Bahama

December 22, 2020