The absence of major American companies operating in Guyana could create a vacuum that would allow for other players, such as Chinese-backed enterprises, to fill the gap. So says six-time Emmy Award-winning TV producer, Arick Wierson, in a November 1 op-ed published in Newsweek.
The largest U.S. companies operating in the South American country are mainly in the oil and gas sector, led by megamajor, ExxonMobil. The company has found over 11 billion barrels of oil equivalent offshore Guyana since 2015 and currently produces close to 400,000 barrels of oil per day at the prolific Stabroek Block, where it is the operator.
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With not many more U.S companies with large-scale operations in the country, Wierson said, “Ceding ground to China in this strategically important economy could prove to be a major problem for U.S. geopolitical interests in the region.” He cited Dr. Tenpao Lee, the professor emeritus of economics at Niagara University, who closely tracks Chinese global economic expansion across the developing world. “Guyana is not only on China’s radar, but the country is a major focal point of its Caribbean and Latin American investment strategy,” Lee explained to Newsweek. “And although the United States ought to be its preferred natural business partner given that they are both English-speaking and so close geographically, I expect China to be very competitive, investing in key sectors by offering terms and conditions that many American companies may find tough to match.”
Lee believes the U.S. should be doing more to educate and incentivize American companies about opportunities in Guyana and the need to move quickly and seize first-mover advantage.
Former U.S. Ambassador to Guyana, Sarah-Ann Lynch, told a gathering of private sector representatives in Georgetown last year that in the first three quarters of 2022 alone, trade between Guyana and the US totaled US$1.6 billion. “And we’re just getting started. US companies are ready to partner in a number of areas, not just in the oil and gas sector, but also infrastructure, agriculture, healthcare, services, tourism, etc. which to me, in a way, represents a positive shift in the narrative we are promoting when it comes to economic cooperation with US companies,” Lynch said.
But Wierson believes the Biden administration could be doing a lot more when it comes to Guyana, especially given that it is poised to join the U.N. Security Council as a non-permanent member in 2024.
“Although the U.S. military is engaged around the geopolitical importance the country holds, outside of the energy sector, the CEOs of many major American companies are still seemingly asleep at the wheel,” he noted. “And this void is creating an opening for foreign interests, namely Chinese state-backed enterprises, to gain an important foothold in the country.”
Guyana’s President, Dr. Mohamed Irfaan Ali, told Wierson that the country is open for business.
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“We invite the world to invest in our land of untapped potential. But American investors must seize this opportunity before it slips through their fingers,” Ali is quoted as saying. “With vast natural resources, an educated workforce, and a commitment to democracy, we offer stability, legal protections, and the convenience of being just a four-hour flight from Miami. Guyana, however, is not waiting on anyone. The United States needs to intensify its efforts to encourage American businesses to invest in Guyana.”
Alistair Routledge, President of ExxonMobil Guyana, told Newsweek that, “Every chance we get, we encourage other American companies—especially those outside of the energy sector—to come to Guyana and see for themselves what’s going on…”
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Like former Ambassador Lynch, Routledge cited trade between the U.S. and Guyana in 2022, which he noted reached nearly $4 billion by the end of the year and is expected to grow.
