Guyana ranks in oil discoveries, challenges remain ensuring sustainable development for Guyanese

Since 2015, Guyana has solidified its position as a global leader in oil discoveries, with a surge in exploration results that have elevated its standing in the energy sector. According to Rystad Energy, the Norway-based energy intelligence firm, Guyana has surpassed 13 billion barrels of oil equivalent (boe) in recoverable resources, making it one of the most significant players in the industry.

Rystad’s estimates highlight Guyana’s remarkable rise as an oil-rich nation, with its total discovered resources positioning it ahead of 19 other countries, including heavyweights like Canada and Russia. Although official figures from the Guyanese government and ExxonMobil—operator of the country’s largest block—report approximately 11 billion boe, the overall recoverable resources remain substantial.

In Rystad’s global ranking, Russia comes in second with larger volumes of oil and gas reserves, followed by Canada. When considering both oil and gas reserves, Guyana ranks just behind Russia, with China, Mexico, and the United States rounding out the top five.

Guyana’s Oil and Gas Boom

Since the initial Liza discovery in 2015, Guyana has attracted global attention for its exceptional offshore reserves, particularly in the Stabroek Block. ExxonMobil, in partnership with Hess Corporation and CNOOC, has led exploration in the area, making over 30 discoveries to date, with the most recent being the Bluefin find. There have also been notable discoveries in the Corentyne Block, further solidifying the country’s position as an energy powerhouse in the making.

As of early 2024, ExxonMobil has flagged 30 wells for drilling in three major developments in the Stabroek Block: Yellowtail, Uaru, and Whiptail. These projects are expected to significantly increase production capacity and further boost the country’s status as an oil giant.

Comparing Global Reserves

While Guyana’s rapid growth in oil production has drawn attention, it is important to compare its reserves with other major oil-producing countries. According to the U.S. Energy Information Administration (EIA), Russia’s proven oil reserves stood at 80 billion barrels as of January 1, 2024. Russia also holds the largest proven natural gas reserves globally, with 1,688 trillion cubic feet (Tcf) of gas, largely controlled by Gazprom, the state-owned natural gas giant.

Guyana’s natural gas reserves, although far smaller, are also noteworthy, with an estimated 17 Tcf. This positions the country as a rising player not just in oil but in natural gas as well, further enhancing its appeal for future energy investments.

A Bright Future for Guyana’s Energy Sector

Guyana’s emergence as a major oil producer in just under a decade is a testament to the country’s resource potential and ExxonMobil’s extensive exploration efforts. With the anticipated drilling projects in 2024 and beyond, the country’s oil and gas industry is poised for continued expansion, likely bringing even greater economic benefits to the nation.

As the country leverages its growing oil wealth, positioning itself as a key player on the global energy stage, challenges remain in ensuring that the benefits of its newfound resources translate into long-term, sustainable development for the Guyanese people.