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- [00:00]
A
From Tokyo, Japan and New Plymouth, New Zealand, this is down to business English with your hosts, Skip Montreux and Samantha Vega.
- [00:20]
B
I know our listeners cannot see what I'm holding here, but Samantha, have you seen any of these black and white Calbi potato chip bags? Have you seen them online or anything? I bought this package I'm holding here last night at a convenience store.
- [00:36]
A
Ah, okay. I haven't seen anything. That's. That's the biggest. That's the most up close version of it that I've seen. I have seen a story on it. Yeah, I like that kind of monochrome look.
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B
You do?
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A
I think it looks good. Yeah.
- [00:47]
B
It's interesting.
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A
Initially I thought that it was just a marketing ploy, but then I also read about it being an issue of getting some of the color on the package. Had to do with the conflict in the Middle East.
- [00:58]
B
Yeah. So Kalbi is saying that because of the high oil prices that they want to save money. And one way they can save money is by removing the color packaging, which I guess takes a lot more energy or a lot more oil. But a lot of people are saying it is just a marketing ploy.
- [01:17]
A
Well, either way, it seems to be working. It does point out to how incredibly sensitive the global economy is to Middle east conflicts, especially around the strait.
- [01:25]
B
Yes, and because the global economy is so reliant on oil, that industry, the fossil fuel industry, remains incredibly essential and highly lucrative. And discovering a new reserve of oil can completely transform a country's national economy.
- [01:46]
A
Ah, yes, liquid gold. Texas tea, as the Beverly Hillbillies used to say. Now I'm dating myself. But if you don't know what that is, you can look it up on YouTube. I understand that yeah, it is highly lucrative to find new oil reserves, but I still have my green hat on. And I'm hoping that this will show countries that they do need to ramp up their transitions to green energy solutions. Instead of relying so heavily on fossil fuels, we do need to keep moving forward toward alternative energy sources. But I do understand that striking oil is also the equivalent to winning the lottery, especially for global south countries.
- [02:20]
B
Is your rant over?
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A
Okay, my green hat's off now.
- [02:23]
B
Okay, well, today on down to business English, I want to talk about one of those South American countries that is home to an economic miracle. All based on a recent discovery of offshore oil.
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South American country, Which one we are
- [02:42]
B
going to be reporting on? The cooperative Republic of Guyana.
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A
Not to be confused with French Guiana. Guyana is right next door to Venezuela.
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B
That's right. French Guiana is a Couple more countries over. Now, Guyana in the past has had an economy traditionally based on mining and agriculture and a little bit of tourism. But today, currently it is one of the world's fastest growing economies, all driven by offshore oil.
- [03:13]
A
Okay, did a quick google Guyana. Its reputation is for biodiversity, which that's not necessarily going to blend that well with oil discovery. But 80 to 90% of its land is covered in untouched rainforest. Would be beautiful for ecotourism. Home to the Booker Prize, which is a huge literary award, and the birthplace of Eddie Grant. Rock down to Electric Avenue.
- [03:40]
B
I'm not going to sing it.
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A
No, it's not karaoke night.
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B
Well, here's another fun fact you can add to your list about Guyana. It is the South American country where English is the official language. It is a legacy of their past British colonial rule.
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A
Okay, so we're talking about Guyana today.
- [03:58]
B
That's right. So let's do it. Let's get D2B down to business with Guyana's oil boom.
- [04:20]
A
So how much oil did Guyana actually find to kick off this boom?
- [04:24]
B
Well, let's take a look at the whole timeline. This all started back in 2015 when ExxonMobil discovered oil, their Lisa 1 offshore oil well about 120 miles off of Guyana's coast. And since then, there have been an additional 30 discoveries of oil fields. Experts estimate that there is about 11 billion barrels of recoverable oil under the ocean floor.
- [04:53]
A
11 billion barrels. Pretty significant.
- [04:56]
B
Now, if you put that in the context of world oil supplies. The world uses about 33 billion barrels of oil every year. So if the rest of the world suddenly stopped producing oil. Guyana has enough oil to supply energy to the world for about four or five months.
- [05:13]
A
I'm guessing most of it's still in the ground now, though.
- [05:16]
B
Yes, it's still under the ground. Currently they're pumping about 900,000 barrels per day. And they have a target of increasing that production to about 1.7 million barrels per day by 2030.
- [05:30]
A
Okay, so this must create immense potential for economic transformation. I'm just looking at an article here and they're using catchphrases. The new Qatar or the next Dubai.
- [05:41]
B
I have heard that.
- [05:42]
A
So what is the actual economic impact?
- [05:44]
B
Well, if you look at it in terms of GDP, growth has been massive. In 2024, Guyana's national GDP stood at 43.6%. I mean, you just don't hear growth rates like that. And the government is doing some smart things. They are taking their share of the royalties and putting it into a natural resource fund. And that fund has amassed $3.6 billion already. It's kind of like a sovereign wealth fund.
- [06:15]
A
So that's for the public betterment. What about the private sector? What about, you know, local workforce and local businesses? How is it helping the people on the ground? Are they seeing any financial benefits?
- [06:28]
B
Well, in this area, there are some pros and cons. On the pro side, they have put in a law that mandates companies to use local labor, which is a good thing. But on the con side, it's creating a bit of a labor shortage because, you know, Guyana only has a population of about 900,000 people. So their workforce is very small. They don't have enough workers to fill all of these oil related jobs. On top of that, oil related jobs pay a much higher salary. So traditional sectors like agriculture and tourism and mining, they can't compete on the salary side. So they don't have enough workers to fill all those positions.
- [07:14]
A
And I would imagine some of the skills needed are quite highly technical for offshore drilling. And maybe they don't have the education to be able to fulfill those positions.
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B
That adds to the problem as well. They don't have enough trained people for these technical jobs.
- [07:29]
A
So let me put my green hat back on. Guyana makes a lot of money off of ecotourism each year. So how does a country which is famous for its pristine rainforests reconcile that green image while pumping millions of barrels of crude oil offshore?
- [07:47]
B
That's a very good question, Samantha. And there is a lot of controversy about this. But the government does have a strategy that deals with this paradox. And specifically they are pushing what they call the Low carbon Development Strategy, 2030 or LCDS. This is a way they can monetize their rainforests through selling carbon credits on carbon markets at the same time they are expanding oil production.
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A
Ah, yes, green credits or greenwashing maybe. So they sell carbon credits to offset. That's great. As long as they're not cutting down the rainforest to create those carbon credits.
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B
No, they're not cutting down the rainforest. They are producing oil.
- [08:31]
A
Well, that does sound promising. So zooming back out to the global stage, I would imagine that this current crisis in the Middle east is actually a windfall for Guyana. With the Strait of Hormuz closure causing global supply chain shock. It must be a huge economic boon for the people of Guyana and perfect timing at that.
- [08:53]
B
Well, you're absolutely right, Samantha. It has been a historic windfall. With crude oil prices skyrocketing, I think they peaked at $150 per barrel back in March. Guyana's natural Resource Fund has seen record inflows. And these higher global prices are allowing oil companies like ExxonMobil to recover their investment costs much faster. And the sooner they pay off their investments, which they have spent on oil infrastructure, the sooner they can start sharing their revenues with the Guyanese government. And of course, strategically, Western and Asian markets are now relying much more on Guyana as a vital, stable alternative to Middle Eastern oil.
- [09:41]
A
Okay, I see. So that's great that they're pumping it out of the ground, but what about the refining of the crude oil? Where's that happening?
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B
Hmm. There's another paradox. Despite pumping millions of barrels a day, Guyana lacks their own domestic refining capacity. So this leaves them completely vulnerable to that same volatility that is enriching the government's treasury.
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A
Ah, so they're producing all this crude, but they still have to import their own actual gasoline, petrol, diesel, so that they can drive their own cars and run their industries.
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B
That is exactly what has happened and has caused a major issue. In fact, since April, Guyana has been experiencing widespread fuel shortages. Since the cost of importing refined products like petrol, diesel and aviation fuel has skyrocketed, that has driven the national fuel import bill to up around $45 million per month.
- [10:43]
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And high energy costs trickle down into transportation, agriculture, manufacturing. And all that of course, leads to inflation.
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B
Inflation and black and white kalbi potato chip packaging.
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A
So Guyana is the ultimate modern test case for managing the so called resource curse. Balancing overnight wealth with stable economic growth.
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B
Yes, but even though they are facing some challenges, it does seem that Guyana has learned some lessons from other countries where that resource curse has taken place.
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A
We would hope so. And on that note, I think it's time for us to get D2V down to vocabulary.
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B
The first item on today's D2V list is the collocation or word pair. A marketing ploy. A marketing ploy is a strategy or action designed to attract attention, create interest, or persuade people to buy something.
- [11:56]
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And the word ploy often has a slight negative feeling. It can suggest that the company is being clever, maybe even a little manipulative.
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B
That is very true. A marketing ploy is not just ordinary marketing. It may feel like a trick or a way to get attention without being 100% completely honest.
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A
And that's how we used it in today's introduction.
- [12:23]
B
Yes, it is. We were talking about Calbi's black and white potato chip pattern packaging. Samantha said that at first she thought the new packaging was just a marketing ploy.
- [12:35]
A
In other words, I thought Calbi may have changed their packaging mainly to get people talking about the product and attract attention, not because of high oil prices or higher packaging costs.
- [12:46]
B
And I also commented that a lot of people were saying the same thing, that the black and white packaging might just be a marketing ploy.
- [12:56]
A
In business, we often use this expression when a company does something unusual to get publicity or customer attention.
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B
What would be another example of a marketing ploy?
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A
Samantha, you know how in a B2B context, a company might offer something useful for free, but the real purpose is to attract potential customers and create a sales opportunity?
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B
Sure, I see that all the time. The offer may look helpful on the surface, but it is also a clever marketing tactic.
- [13:27]
A
Exactly. For example, a software company might offer a free cybersecurity audit to large manufacturers. The audit helps the manufacturer find security risks, but it is also a marketing ploy to introduce the company's paid security platform.
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B
The free audit is useful, but the bigger goal is to get access to potential customers and sell them a paid service later. Yeah, very nice example.
- [13:55]
A
The next item on our list is the phrasal verb to ramp something up. When we ramp something up, we increase it, strengthen it, or make it happen faster, right?
- [14:05]
B
We often use ramp up when we talk about business activity, production, investment, hiring, or just effort. If a company ramps something up, it does more of it or does it more quickly.
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A
And in today's introduction, I used this expression when I was talking about green energy. I said that countries need to ramp up their transitions to green energy solutions instead of relying so heavily on fossil fuels.
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B
In other words, Samantha was saying that countries should move faster and make a stronger effort to develop and use alternative
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energy sources, especially if oil prices and global supply chains are so sensitive to political conflict.
- [14:49]
B
This expression is very useful when a company increases activity because demand is rising or because there is a new opportunity. For example, after winning a major contract with a large automaker, a parts supplier might have to ramp up parts production. That could mean adding a second shift or ordering more raw materials.
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That's a very clear example. The company did not just continue producing at the same level. It increased production because the new customer needed more parts.
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B
Moving on, let's talk about the verb amass. When we amass something, we collect or build up a large amount of it over time.
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A
A mass is commonly used when talking about money, wealth, data, or resources. It usually suggests that the amount has become very large.
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B
In today's report, I said that the Guyanese government is putting some of its oil money into the Natural Resource Fund, and that fund has already amassed $3.6 billion.
- [15:59]
A
In other words, Guyana's oil fund has already collected a huge amount of money. That money is being saved and managed for the country's future.
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B
Exactly. And because $3.6 billion is such a large amount, amassed is a good word for us to use here.
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A
In a business context, we can use amass when a company builds up a large amount of something valuable, such as customer data or cash reserves. Listen to this example. Over several years, the logistics company amassed a large database of delivery time data from its corporate clients. It then used that data to improve its route planning so that they could offer faster delivery services.
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That is a very realistic example. The company did not collect just a little data. It built up a large and valuable amount of data over time and then used the data they had amassed to improve their business.
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A very smart move on their part.
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B
What's next on the list?
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A
Our final item on today's D2V list is the expression the pros and cons.
- [17:08]
B
Great choice. You always hear business people using this phrase.
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A
You do? The pros are the good points of a decision, a situation or a plan. The cons are the bad points.
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B
That's right. Another way of thinking about it is the pros are the advantages or the reasons in favor of something. The cons are the disadvantages or the reasons against it.
- [17:35]
A
And in today's report, Skip used this expression. When I asked how Guyana's oil boom was helping local workers and businesses, he said there were some pros and cons. On the pro side, Guyana had put in a law that required companies to use local labour. But on the con side, Guyana had a small population, so there were not enough workers to fill all the new oil related jobs. And because oil related jobs paid much higher salaries, other industries were having trouble competing for workers.
- [18:10]
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In simpler terms, the oil boom is creating new opportunities, but it is also creating new problems for the local economy. The boom has some advantages, but also some disadvantages.
- [18:24]
A
In business, we often discuss the pros and cons of something before making an important decision. For example, a company might discuss the pros and cons of outsourcing its customer support to an outside company, a third party.
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B
One pro might be that outsourcing reduces costs and gives customers 24 hour support. A con might be that the company has less control over service quality, so
- [18:52]
A
the company has to look at both the good side and the bad side before making a final decision. Would you like to help down to Business English Reach more people wanting to improve their business English skills. Follow down to Business English on Apple Podcasts, YouTube, Music, Spotify, or any place podcasts are found. Leave a rating and a review and tell everyone how much you enjoy the show. Thanks for the report on Guyana's oil boom Skip, and for unpacking the situation for us.
- [19:35]
B
My pleasure, Samantha. I have to say, in terms of a business news story, this report has offshore oil, rapid economic growth, environmental questions, and more than just a few difficult trade offs.
- [19:51]
A
It really does. Guyana may be a small country, but its oil discovery has put it right in the middle of some very big global business and energy conversations.
- [20:03]
B
Absolutely, DTB members and Apple Podcast subscribers. The bonus down to Vocabulary episode for today's report will be coming out very soon. In that bonus episode, we will take a closer look at five useful words and expressions from today's story to be reliant to reconcile a paradox, a windfall, and the phrasal verb to trickle down.
- [20:32]
A
That's a very practical list of business vocabulary.
- [20:34]
B
Yes, I think so. If you are already a D2B member, remember to copy your Members Only podcast feed URL from your account page on the D2B website and paste it into your preferred podcast app.
- [20:50]
A
Once you do that, the bonus D2B episodes will appear in your feed as soon as they are released.
- [20:56]
B
And if you subscribe through Apple Podcasts, you don't need to do anything. The bonus down to Vocabulary episode will show up automatically in your Apple Podcasts feed.
- [21:08]
A
And if you are not yet a D2B member or an Apple Podcast subscriber but you find these episodes useful, please do consider supporting down to Business English to become a D2B member, go to d2benglish.com membership and sign up today.
- [21:27]
B
That's D the number two benglish.com forward/membership. And to subscribe through Apple Podcasts, all you need to do is just open the down to Business English show page in Apple Podcasts and tap the subscribe button. Thanks for listening everyone. See you next time.
- [21:50]
A
Take care. Down to Business English Business News to improve your Business English.