New Oil Power Guyana On Pace To Surpass U.S. Offshore By 2035

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New Oil Power Guyana On Pace To Surpass U.S. Offshore By 2035

Published: November 23, 2022

New Oil Power Guyana On Pace To Surpass U.S. Offshore By 2035

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As the Biden administration focuses on its efforts to end new leasing and drilling for oil and gas in the Gulf of Mexico and other U.S. offshore provinces, investment continues to pour into projects offshore the tiny South American nation of Guyana. A new study by energy intelligence group Rystad Energy finds Guyanese oil production growing at such a rapid pace that it will surpass production levels in other big offshore basins, including the U.S., Norway and Mexico, by 2035 to become the world’s 4th-largest offshore producer.

Rystad reports that Guyana has been the global leader for new discoveries since 2015, with 11.2 billion barrels of oil equivalent, which amounts to 18% of total global discoveries and 32% of discovered oil. That growth has been driven by the prolific Stabroek block, where a consortium led by ExxonMobil has announced a series of major new discoveries since that time.

Coincidentally, the year 2015 was also when the global oil industry started to suffer from a chronic under-investment in the finding of new reserves ample enough to replace annual consumption. It’s an industry malady that still continues today, and has led to the current under-supplied market conditions. Exxon announced its initial Liza-1 discovery well in May of that year, and the number of new Guyana discoveries has now grown to 32, with two more announced this week.


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