As the world transitions to a low-carbon economy, international energy companies invest heavily in fossil fuel exploration and production in Guyana. Reinforced by favorable geology, escalating petroleum infrastructure, and low breakeven prices, Guyana’s oil is now enticing significant interest from major energy companies globally.
Indeed! Guyana is the most recent power oil play in Latin America and the world.
Although issues such as the impact of COVID-19, renewable energy, and economic studies pervade the reputation, according to Rystad Energy, “the facts are that, when you analyze Guyana’s oil sector, even with just a focus on the current 33 discoveries and the 11 billion recoverable barrels in the Stabroek Block, the projection is that only Saudi Arabia, Brazil, and the United Arab Emirates will produce more oil on an annual basis.”
Besides, prolific exploration and a steady pace of Final Investment Decisions [FID] will propel Guyana to be the world’s fourth offshore oil producer by 2025.
With Rystad predicting that Guyana will be pumping 1.7 million barrels daily by 2035 and Exxon Mobile forecasting that the Stabroek block will propel Guyana from a relatively small producer to a global leader in the coming years, Guyana’s position as a competitive and policy-friendly player for offshore production is further solidified.
Moreover, the International Monetary Fund further projects that Guyana’s economy grew by 86 percent last year, the fastest globally.
According to the U.S. Geological Survey, the Stabroek Block sedimentary basin could be the world’s last great offshore oil boom. As a result, economic analysts now predict that Guyana’s production will reach 1.2 million barrels daily by 2027, becoming the third largest oil producer in Latin America and the Caribbean, making it a top 20 oil-producing nation largest oil-producing nation per capita.
Geologists say Guyana’s sweet light and medium oil grades have a relatively low carbon cost to extract and refine, especially compared to the heavier sourer rates typically found in South America.
For these reasons, Georgetown’s inaugural oil auction now garnered extensive attention, chiefly with Guyana at the top of the leaderboard for yielding the most oil discovered globally since 2015.
Coupled with the fact that Guyana’s offshore oil fields are the most competitive supply sources outside of the Middle East and offshore Norway and are cheaper than the U.S. onshoU.S. heavyweight and the Permian and Russia sources, those characteristics further enhance the attractiveness of investing in offshore Guyana and is attracting considerable investment from international oil companies.
Aside from the fact that Guyana is one of the lowest-cost jurisdictions in Latin America for energy companies to operate in, the prolific Stabroek Block, where Exxon’s strip of world-class finds, has produced 11 billion barrels of recoverable oil resources, it is believed that another 25 billion barrels are waiting to be discovered.
With Rystad predicting Guyana will be pumping 1.7 million barrels daily by 2035, it seems that Guyana has emerged as an elite top-five global producer and that the sedimentary basin could be the world’s last great offshore oil boom.
Rebecca Theodore is an international journalist and syndicated op-ed columnist based in NYC. She now writes about oil, gas, and energy to promote the U.N. Sustainable Development Goal agenda. Follow her on Tw U.N.r @ Rebethd.