Vice President Bharrat Jagdeo has dismissed concerns that U.S. President Donald Trump’s energy policies could threaten Guyana’s oil industry. Speaking at the Guyana Energy Conference, Jagdeo said ExxonMobil’s continued investment signals confidence in future fossil fuel demand.
“Exxon is just starting to submit documents for the approval process of their seventh and eight projects,” Jagdeo said. “Clearly, they see in the future a demand for fossil fuel, and we have a unique opportunity to supply that at low breakeven costs,” he stated.
He added: “ExxonMobil is a very big and complex corporation. They study the oil market. They probably know the oil markets more than any government official, and they’re willing to expand their production here.”
In essence, Jagdeo is saying that Guyana remains well positioned regardless of U.S. policy changes. “I’m not worried too much about the new environment or the U.S. position in relation to the oil and gas industry,” he said.
He noted that while Trump has indicated plans to make the U.S. regulatory environment more favorable for oil and gas, it will not cause a major shift in supply. Jagdeo also pointed out that U.S. fracking operations could be affected if oil prices decline under Trump’s policies.
“If prices come down, as President Trump wants, it could make some existing operations in the US, particularly fracking, not feasible,” he reasoned.
Jagdeo believes that, despite global discussions on energy transition, demand for fossil fuels will remain strong. “Growth in demand is not going to be displaced in a major way by renewable energy,” he said.
But despite Guyana’s heavy focus on oil, Jagdeo reiterated the country is not putting all its eggs in the oil basket. His government has championed diversification throughout its oil story and he reminded that Guyana will continue along this route.
