Guyana’s Oil Riches Are Transforming Its Economy at Breakneck Speed
Guyana is starting to see significant profits from its rapidly expanding oil operations, with much more expected to come. Oil was first discovered in the offshore Stabroek Block in 2015, with development commencing soon after, and production starting in December 2019. This has transformed Guyana into South America’s third-largest oil producer, after Brazil and neighbouring Venezuela. Guyana’s oil…
Guyana's oil sector is rapidly transforming its economy, with production expected to surpass one million barrels per day by the end of 2025. Oil was first discovered in the offshore Stabroek Block in 2015, with development beginning soon after and production commencing in December 2019. Guyana is now the third-largest oil producer in South America, behind Brazil and Venezuela.
The government projects oil production to reach 1.3 million barrels per day by 2027 and 1.7 million barrels per day by 2030. The Guyana Revenue Authority estimates that the country will earn around $6.5 billion in oil revenues in 2026, contributing to a projected GDP growth of 20.8 percent. This growth is expected to propel Guyana towards becoming a high-income economy and raise the country's per capita income to the second highest in the world, after Kuwait.
Investments in construction, logistics, engineering, manufacturing, transport, and financial services have spurred broader economic growth. Between 2019 and 2025, investors spent an estimated $3.6 billion with local businesses, leading to an impressive 33 percent growth in the first half of 2026, making Guyana the world's fastest-growing economy.
However, concerns persist about the equitable distribution of oil revenues. The economist Richard Rambarran noted that Guyana's 14.5 percent share from Exxon's operations is a "terribly bad deal" compared to other countries' higher cuts. Exxon's Alistair Routledge, however, highlighted that an escalation mechanism is in place to boost Guyana's share of revenues.
The government has unveiled plans to spend the oil profits on various initiatives, including building 40,000 homes, investing in infrastructure, healthcare, education, and transportation. While living standards are improving thanks to oil revenues, challenges remain, such as inadequate housing, sewage issues, and crime in Georgetown.
Despite these concerns, Guyana holds the potential to invest its oil revenues wisely and accelerate improvements in living standards, setting a positive example for other Latin American countries grappling with the economic potential of their natural resources.
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