Guyana remains one of the world’s lowest-cost oil producers with competitive breakeven price of US$36/bbl

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A new report from the International Energy Forum (IEF) and S&P Commodity Insights revealed that despite rising production costs, most new oil supplies can be produced at under US$60/bbl Brent. The “Upstream Oil and Gas Investment Outlook” report highlighted that this breakeven price is US$10/bbl higher than in 2021.

Among the lowest-cost producers, Guyana stands out with an average breakeven price of US$36/bbl Brent. The Middle East leads with US$30/bbl, while new wells in the U.S. require about US$57/bbl. 

According to the report, heavy crudes in Canada and Venezuela sit at the highest end of the cost curve. 

Guyana will be one of the most successful deepwater developments in history – Exxon CEO | OilNOW 

“Globally, the supply stack remains relatively flat, with most supplies expected to breakeven between US$50/bbl and US$60/bbl. Both conventional and tight oil projects, including higher-cost ones, will be necessary to meet demand and offset base declines over the next 10-15 years,” the report outlined. 

Oil production in Guyana is led by ExxonMobil. It currently has three projects running, Liza 1 and 2, and Payara. Two other projects, Yellowtail and Uaru, will be online by 2026. These projects have industry-leading breakevens in the range of US$25-35 per barrel Brent, according to Exxon’s Stabroek Block partner, Hess. 

Yellowtail is expected to deliver the second lowest breakeven for Exxon. 

The breakeven for the 250,000 b/d Yellowtail development is pegged at US$29/bbl Brent. In comparison, Liza Phase 1 is US$35/bbl, Liza Phase 2 is US$25/bbl and Payara is US$32/bbl. 

Low breakeven prices have made the Guyana basin one of the most competitive for exploration and production.  


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