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Guyana’s oil wealth may be short lived

Regional 05 Jun, 2024 Follow News

Guyana’s oil wealth has improved the population’s lives

Guyana has emerged as a significant contributor to growth in the global supply of crude oil. Since starting production in 2019, Guyana has increased its crude oil production to 645,000 barrels per day (b/d) since early 2024, all from the Stabroek block.

Guyana increased crude oil production by an annual average of 98,000 b/d from 2020 to 2023, making it one of the fastest growing non-OPEC producing country during this period. Crude oil production has been the largest contributor to Guyana’s economic growth in recent years. In 2022, Guyana’s GDP grew by 62.3%, the highest real GDP growth in the world that year, according to the International Monetary Fund.

Guyana’s most recent estimate of recoverable oil and natural gas resources is more than 11 billion oil-equivalent barrels, and developers are still exploring the country’s offshore waters.

Despite the new-found riches, Guyana President Irfaan Ali has admitted that “time is not on our side” as the country scrambles to make the most of its newfound oil wealth before it is too late.

The oil and gas revenue puts Guyana’s economy in the world’s top 20 in terms of its potential, on a par with countries such as Norway, Brazil and Algeria.

The tiny country of 800,000, which borders Venezuela, Brazil and Suriname in South America’s north-east corner, actually boasts the fastest-growing economy in the world.

But the discoveries come as the planet is trying to wean off fossil fuels to tackle climate change. Under the 2015 Paris Agreement, countries have vowed to reduce their greenhouse gas emissions to net zero by 2050. That means trying to cut down on oil use.

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