With the surge in fuel prices globally, well-established oil producing countries around the world have been looking to boost output, even as groups and climate lobbyists continue to push for new producers like Guyana, to slow down development of its oil fields, or abandoned this pursuit altogether.
The South American country’s Vice President, Dr. Bharrat Jagdeo, said during a press conference in May that civil society groups and even celebrities in countries like the US are targeting Guyana, but can’t find a voice in their home countries.
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The revenue from Guyana’s oil resources is set to transform its economy and the lives of its people. Guyana’s massive oil discoveries to date – nearly 11 billion barrels of oil equivalent – have already placed the country among the top 20 for oil reserves. It is the world’s fastest-growing economy, and that growth is only expected to increase in the next 10 years.
Just recently, United States President Joe Biden, while saying the high profit margins oil companies are currently seeing is unacceptable, issued a call to US producers to ramp up output as Americans grapple with rising costs at the pump.
The global price surge is a direct result of Russia’s war on Ukraine.
According to a CNN report, President Biden recently dispatched a letter to seven companies. In it, he outlined, “There is no question that Vladimir Putin is principally responsible for the intense financial pain the American people and their families are bearing but amid a war that has raised gasoline prices more than $1.70 per gallon (US), historically high refinery profit margins are worsening that pain.”
In Guyana, ExxonMobil, operator of the Stabroek Block, is forging ahead with the development of multiple oil fields. The oil major has made over 30 discoveries in the Stabroek Block; five already for 2022. Four projects have so far been approved by the government, and authorities have made it clear they intend to support the continued expansion of exploration and production operations offshore.
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Guyana is using the much-needed oil revenues to fuel a massive transformation, with works already underway on major infrastructure projects and programmes aimed at bringing relief to those hit hardest by the economic fallout from the COVID-19 pandemic, and now the war in the Ukraine.
Rapid development of oil resources will deliver benefits to Guyana now, say academics
President Irfaan Ali has said the new oil producing country has a right to improve the standard of living of its people and see oil production as a key means of achieving this goal. The country will spend 60% of oil revenues on development projects over the next four years.