The economic fortunes of Guyana, with a population of only 800,000, are poised for a major transformation after its first-ever oil development commenced production two months ago. Offshore oil production is expected to grow rapidly in the years to come and will generate unprecedented revenues for the Guyanese government. Billions of dollars will be added to the economy from the oil.
“Since the initial discovery in 2015 of the giant Liza oil field in the prolific Stabroek block, Guyana has discovered more than eight billion barrels of oil resources,” said Sonya Boodoo, vice-president of Upstream Research at Rystad Energy. “Liza was brought on stream in December and many more fields will follow suit in due course. Guyana’s rising oil revenues will make a huge difference in the continued development of the country.”
Rystad Energy forecasts that Guyana’s oil production could reach 1.2 million barrels per day by the end of the decade, lifting total annual oil revenues to about $28 billion, assuming an oil price of about $65 per barrel. Government income in the country – projected to be a modest $270 million or so in 2020 – is forecast to grow rapidly. Putting that figure into context, Guyana’s gross domestic product currently stands at about $3.7 billion.