While there may be many among us who would welcome the drive for greater freedom and some movement toward democracy in the Middle East, the fallout from the uprisings in that area may bring a certain degree of grief to our economy. The latest indications are that the cost a barrel of the precious commodity is getting perilously close to US$120.
Given the sluggish recovery from the international recession, this must be unwelcome news for the technocrats and policymakers who watch and mind our economy. Prices are likely to increase, however slightly, and in the usual pattern these increases will be passed on to the consumer, which will not be an easy prospect given other recent price increases.
We shall have to redouble our efforts to maximize our foreign exchange-earning capacities because higher oil prices is a two-edged sword – it costs more money and more foreign exchange too, to satisfy the demands of our current consumption patterns of oil-based fuel.
Undoubtedly, great care and attention will have to be paid to using renewable energy wherever possible; and perhaps personal conservation measures in the home and in offices will help to alleviate the extra burden that may come in the wake of this conflict, even if it is resolved shortly.
It has been said so often, that repetition may be unnecessary; but we urge all to support the national policy of adopting renewable energy solutions and the conservation of oil-based fuel where it cannot be avoided. We must as a nation put every shoulder to the wheel, for a chain is only as strong as its weakest link.
Of continuing and even more immediate interest must now be the exploration of our possible oil and gas fields which may be lying offshore in our waters. Admittedly the process will take time, but the likely economic significance of any such finds almost dictate that we must urgently examine the process of exploration.
Our economy would be transformed if large enough finds are unearthed, and without counting our chickens before they are hatched, geological surveys suggest that there may be some scope for cautious optimism.
Minister of Finance Chris Sinckler has obviously been giving this matter his attention, as is evident from a recent interview with Tony Best in New York, when he announced that the Government had chosen BHP Billiton to explore for oil or gas. He also explained that some adjustments had to be made to the legislation which should be in Parliament soon.
Recent developments, apart from anything else, would dictate that this is an opportune time to restart the process of getting exploration under way. The Middle East crisis may be an ill wind, but if the rise in the price of crude oil makes it even more likely that exploration should begin, then it will be an ill wind that blows us some good, especially if oil or gas is found.
Whatever is done, we urge the Government to ensure that the strictest protection for our environment is observed. Legislation is the first barrier of protection in this regard, but as we have seen only too recently, some industry operations may well fall short of best practice, and environmental disaster may follow as night follows day.
So that in exploring, our enabling legislation must be very careful, at all times, to protect and preserve the attractive conditions of our beaches and marine environment. We expect that the Government will do all in its power, in this regard, to discourage any industry practices that may lead to environmental accidents.
Needless to say, the training and engagement of local expertise wherever possible must be part and parcel of any venture, for exposure to higher training in gas and oil exploration, and in the relevant law, has been undertaken by Barbadians in recent years. And every chance to improve local skills for the national benefit should be made available.
