The world of oil leaves very curious data. A good example of this is Guyana, a small country of just over 800,000 inhabitantslocated between Venezuela, Brazil and Suriname, which produces large quantities of oil and does not surprise the markets by beating all production expectations. The latest September data published by ExxonMobil reveals that Guyana alone produced enough oil, for example, to satisfy the entire demand of Spain (48 million inhabitants) for 20 days. Or what is the same, Guyana produces more than 50% of the crude oil needs of all of Spain every day.
ExxonMobil, the oil company that is exploiting Guyana’s treasure, is gradually increasing deepwater production to an average of 660,000 barrels per day (b/d). Liza blocks 1 and 2 averaged approximately 160,000 b/d and 251,000 b/d, while Payara averaged 249,000 b/d, all belonging to the giant Stabroek block. These production levels resulted in a pumping of almost 19.79 million barrels in Septemberthe highest monthly production in its history.
In the first three quarters of 2024, ExxonMobil produced more than 165 million barrels of crude oil at an average rate of 604,000 b/d in the Stabroek block. All projects have produced above their planned objectives, thanks to the success of the decongestion activities. Liza 1 and 2 averaged 146,000 b/d and 227,000 b/d, while Payara averaged 231,000 b/d.
ExxonMobil continues to perform additional optimization work on the Liza 2 project since it partially closed in July. The company is expected to increase production in that block after getting the regulatory green light. The government projects that production in 2024 will total about 228 million barrels per day. This requires average production of 680,000 b/d in the fourth quarter, a new record.
This doesn’t end here. Next year, Exxon is expected to bring the Yellowtail project online, increasing production capacity to more than 900,000 barrels per day (b/d). Guyana’s oil boom is unmatched. Every forecast made by experts about future production levels is surpassed by ExxonMobil thanks to investment in innovation and the permissiveness of the Government of Guyana to operate in the country’s large field.
In a matter of three or four years, Guyana has become one of South America’s largest oil producers and the world’s largest per capita producer of crude oil. ExxonMobil, the company that works closely with Guyana to extract its most precious treasure, has pumped 660,000 barrels of crude oil every day at its recent peak, almost one barrel per inhabitant.
Furthermore, this oil has become a blessing for a Europe (even surpassing Venezuela in exports) that has had to look for new partners after the sanctions applied to Russia. Now, Guyana’s crude oil will be one of the few that will add to global supply amid OPEC cuts and growing tensions in a market threatened on several fronts.
“Guyana has markedly increased its oil production in its very short history as a major producer. After first discovering crude oil in 2015 and commencing production in late 2019, the rapid development of the Liza project and, more recently, the Payara increased Guyana’s crude oil production to 660,000 per barrel by the end of 2024. We anticipate that the commissioning of the Yellowtail project will help increase Guyana’s petroleum liquids production by an additional 100,000 b/d in 2025, and that the Guyana’s total petroleum liquids production will exceed 800,000 barrels per day in the fourth quarter of 2025,” the EIA says.
One of the elements that has had the greatest relevance is that the discoveries are located in the mar, which significantly streamlines administrative procedures, which are supported by the Government of Guyana, which encourages and facilitates this type of work and investment, sector experts explain to elEconomista.es.
This 2024, Guyana’s oil will become more important than ever. Although the EIA estimates that its production contributes 300,000 ‘new’ barrels per day, this small country could even surprise on the upside. Unlike Venezuela, Nigeria or Libya (countries that always seem to surprise with rising production that never arrives), Guyana when it publishes data usually surprises with actual production that exceeds the ‘scheduled’.
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