With two projects producing, two more approved and a fifth being planned, Guyana’s rapid development of its oil and gas resources is positioning the country as a major non-OPEC player among heavyweights such as Norway, Brazil and Canada.
OPEC said in its most recent monthly market report that oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties.
Non-OPEC liquids supply growth will be 2.1 million b/d this year and 1.73 million b/d in 2023, up from 1.71 million b/d estimated last month.
According to OPEC, the main drivers for growth next year are expected to be the US, Norway, Brazil, Canada and Guyana while oil production declines for 2023 are projected mainly in Russia and Azerbaijan.
“Guyana production through 2025 is set to exceed estimated growth from Mozambique, Iraq and Brazil combined,” said CEO of Hess Corporation, John Hess, during the 50th Annual Scotia Howard Weil Energy Conference held earlier this year.
Guyana’s rise is fuelled by the unparalleled success of ExxonMobil at the prolific Stabroek Block which Norway’s Rystad Energy said has turned the once frontier basin into a hotbed of exploration in just five years.
“During this period, explorers have become pickier when choosing exploration prospects with a stronger focus on chance of success, deliverability and costs – factors that all favor the up-and-coming basin as a core area for exploration and development globally,” Rystad Energy said.
The US oil major has made over 30 discoveries offshore Guyana since 2015 and estimates reserves to be around 11 billion barrels of oil equivalent at Stabroek.
The International Monetary Fund has said these reserves could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs.
The IMF pointed out that oil production is expected to increase significantly with the coming on stream of two large oil fields in the Stabroek Block over the next four years. These include the Payara and Yellowtail Projects.