Even as the world transitions to renewable energy, demand for fossil fuels will remain robust over the next 20-30 years. Guyana’s low cost, low carbon barrels are best positioned to meet this demand and the South American country has every intention of ensuring it plays a key role in this regard.
President Irfaan Ali has made it clear that Guyana remains committed to a low carbon development model, but this objective will in no way prevent the country, already a net zero emitter, from developing its vast oil resources.
Mr. Ali has made it clear that the South American country has a right to develop its oil resources to the benefit of the more than 700,000 Guyanese. “By exercising that fundamental right, we are saying to the world, ‘We will do it in a different way; in a sustainable way; in a way in which we secure the environment; in a way in which we keep that forest cover; in a way in which we continue to contribute to the global fight against climate change.”
“The world needs the oil, and I think more people should accelerate [exploration and production],” says John Hess, Chief Executive Officer of Hess Corporation, a 30% stakeholder in the Stabroek Block offshore Guyana.
Supply is having a hard time keeping up with demand. World demand is now about 98 million b/d, and “we think by year-end it will be 101 million b/d,” Hess said.
Hess, Stabroek Block operator ExxonMobil, and co-venturer CNOOC, have found around 11 billion barrels of oil equivalent offshore Guyana since 2015 making it the third largest in Latin America and Caribbean, and one of the highest levels of oil reserves per capita in the world.
“This could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs,” the International Monetary Fund said in a recent statement.
The Stabroek Block consortium has two projects producing oil – Liza Phase 1 and 2, and two more under construction – Payara and Yellowtail. A fifth at Uaru is being planned and the con-venturers have line of sight on several more developments.
Total production is expected to exceed 1 million barrels per day by 2027.