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By Mark DaCosta- As Guyana’s oil production surges to new heights, multinational oil giant ExxonMobil has reported unprecedented profits. The company, in its recent second-quarter earnings call, announced that it had achieved its highest oil production since the landmark merger between Exxon and Mobil in 1998. This announcement raises critical questions about the tangible benefits for the people of Guyana, many of whom continue to struggle with poverty and hunger.
ExxonMobil’s net production for the second quarter of 2024 was an impressive 4.4 million oil-equivalent barrels per day, marking a 15 percent increase from the previous quarter. This surge is attributed to growth in production from its assets in Pioneer, Guyana, and the Permian Basin. Darren Woods, ExxonMobil’s Chairman and CEO, stated, “We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger.”
These record-breaking production figures have translated into significant financial gains for ExxonMobil. The company recorded $9.2 billion in profits for the second quarter of 2024, describing its performance as “industry-leading.” This remarkable growth has been largely driven by increased oil output from the Stabroek Block, operated by ExxonMobil Guyana Limited (EMGL). The Payara development, which added a third major project to the Stabroek Block portfolio last November, reached its peak production earlier this year, contributing over 220,000 barrels of oil per day. This is in addition to the substantial outputs from the Liza One and Liza Two projects, which produce an average of 160,000 and 250,000 barrels per day, respectively.
Despite these impressive figures and the profits they generate, the reality on the ground in Guyana tells a different story. According to the World Bank, 39 percent of Guyanese live in poverty, and many children go to bed hungry. The question on the minds of many citizens is: where is the money going?
While ExxonMobil boasts about its financial successes, including a 10 percent growth in high-value product sales compared to the first half of the previous year, the benefits for the average Guyanese remain elusive. The company has submitted an application to Guyana’s Environmental Protection Agency (EPA) for its seventh proposed development in the Stabroek Block, named Hammerhead. This project, expected to start production between 2029, promises a capacity of 120,000 to 180,000 barrels per day, pending government approval.
However, as oil production and profits soar, the Guyanese population sees little improvement in their daily lives. The wealth generated from our nation’s natural resources seems to bypass the very people who should be its primary beneficiaries. The disparity between ExxonMobil’s record earnings and the persistent poverty in Guyana raises concerns about the distribution of wealth and the effectiveness of governmental policies in ensuring that the nation’s oil wealth benefits all its citizens.
ExxonMobil’s projects in Guyana have indeed exceeded expectations. The Liza One and Liza Two projects, along with the Payara development, have all surpassed their initial design capacities. For instance, the Payara project, initially designed to produce 220,000 barrels per day, now outputs between 230,000 and 240,000 barrels per day, as reported by the Ministry of Natural Resources. These developments highlight the technical and operational successes of ExxonMobil in Guyana.
Yet, the pressing issue remains: how can these successes translate into real, measurable benefits for the Guyanese people? The significant profits and increased production capacities must be matched with investments in local communities, healthcare, education, and infrastructure to uplift those living in poverty.
As our nation continues to emerge as a major player in the global oil market, it is imperative that the wealth generated from our natural resources is used to improve the lives of all Guyanese. The government and ExxonMobil must work together to ensure that the benefits of oil production are felt by every citizen, addressing the pressing issues of poverty and hunger that continue to afflict our country. The promise of prosperity from our oil wealth must become a reality for the people of Guyana, not just a statistic in a corporate earnings report.
