Suriname may be the smallest country in Latin America in terms of population and area. However, it is the largest in terms of natural resources. The government has a rich history of gold and bauxite mining. However, the recent discovery of vast offshore oil fields has the potential to bring prosperity from a new resource.

The Surinamese government has been in conversations with global oil companies that could fetch as much as $9 billion for rights to develop the area. This income could provide an instrumental opportunity for the country as 26% of its population lives in extreme poverty. Suriname President Chandrikapersad Santokhi added that this opportunity could “end global energy poverty.”

However, a lack of energy and power severely challenges poverty reduction as services like health care and education become limited. Nonetheless, Suriname has had some successful ventures in combating energy poverty and the current situation can provide the opportunity to make an impact on a larger level.

Overview of Energy in Suriname

Suriname is one of three net-zero countries in the world. Its expanse of dense forests helps it absorb more carbon than it emits, but it has also made progress in using green energy, with 38% of its overall electricity coming from hydropower. The use of multiple energy sources has helped Suriname provide power to 98% of its population. However, there are still challenges for those living in dense forest areas, primarily indigenous communities. Historically, these people relied upon old gas-powered generators for electricity, which could limit power to only four hours per day.

To address this, the government, the International Development Bank and the Caribbean Investment Facility rolled out a Sustainable Energy Framework in Suriname. This program helped bring more than 20,000 people reliable electricity through sustainable methods, including mini solar grids. The increase in power access is a key advantage for these populations in improving living conditions.

In Suriname, most of the energy is still produced from oil. Staatsolie, a state-owned organization, manages the majority of oil and gas operations in the country. It has collaborated with the government to establish sustainable standards and practices that aim to maintain its net-zero rating. The company also hosts the Suriname Energy Oil and Gas Summit and donates the event’s revenues to communities in need. This includes renovating schools for children living in poverty. Despite these positives, inequitable energy, inflation and government subsidies contribute to high power and fuel prices. The impending oil boom can address this key area.

Opportunities With Oil and Gas

Staatsolie has recently signed an agreement with two other companies to increase production in offshore oil fields. This increase is expected to begin later this year and continue until 2025. Government officials have previously declared their commitment to utilizing the influx of oil and its respective revenue for economic development.

There is an increased demand for various goods and services associated with the impending production, which will benefit Surinamese businesses and citizens. Rather than outsourcing employment, Suriname can award opportunities to its vulnerable populations and empower entrepreneurs. Investing in economic development is the key to addressing the challenges of inflation and insurmountable energy costs. In addition to employment, this is a perfect driver for organizations like Staatsolie to increase their humanitarian work to address poverty in the nation.

– William Galante

William is based in Southbury, CT, USA  and focuses on Good News for The Borgen Project.

Photo: Wikimedia Commons