Guyana: The tiny country with big ambitions fast emerging as a global oil producer
A tiny South American country is emerging as a reliable oil supplier globally as flows from the Middle East face disruptions and European nations seek alternatives to Russia. Guyana's rapid increase in crude production, from zero in 2019 to about 90,000 barrels per day in the first half of the year, is catapulting the country to one of the world's fastest-growing economies, lifting thousands of…
Guyana, a small South American nation, is rapidly becoming an influential player in the global oil market as it faces disruptions in the Middle East and European nations seek alternative sources to Russia. The country's crude production has surged from zero in 2019 to approximately 90,000 barrels per day (bpd) in the first half of the year, catapulting it into one of the world's fastest-growing economies.
Guyana's non-OPEC oil output is projected to reach 1 million bpd soon and could potentially surpass 1.7 million bpd by 2030.
According to Stephanie Rivera, a research analyst at S&P Global Energy, the Middle East conflict has made Guyana's oil more strategically important to global markets. The country's light-to-medium, low-sulfur crude oil is not affected by Middle Eastern shipping chokepoints, offering refiners an attractive alternative to diversify their supply.
With its favorable low sulfur content, high yields of middle distillates like diesel and jet fuel, and competitive break-even costs of $30–$40 per barrel, Guyana's crude oil is particularly appealing to refiners, especially in Europe.
Guyana's oil boom began seven years ago when oil was discovered in 2015, thanks to ExxonMobil-led consortiums such as Chevron and CNOOC. The group has invested an estimated $55 billion to $60 billion in the Stabroek Block, which recently reached a significant milestone by producing its billionth barrel of oil less than seven years after production started in 2019.
With an estimated resource base of nearly 11 billion oil-equivalent barrels and plans for up to eight offshore developments by 2030, the Stabroek Block is set to meet demand in the Americas, Europe, and Asia, enhancing global energy security and market stability.
As oil revenue continues to soar due to increased production and rising crude prices, Guyana has transformed from a small, agriculture and services-based economy into one of the world's fastest-growing economies. From a 5.4% annual growth rate in 2019, the country's economy expanded by 43.5% in 2020, 20.1% in 2021, 63.3% in 2022, 33.8% in 2023, 43.8% in 2024, and 19.3% in 2025, according to the International Monetary Fund.
Guyana's GDP is projected to grow by 16.2% in 2026, the highest rate globally, as oil revenue continues to increase.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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