Oil giants ExxonMobil, Shell, TotalEnergies and others are fast-tracking billions of dollars of upstream investments to develop deepwater offshore blocks in South American countries
Guyana and Suriname have emerged as the ultra-deepwater frontiers for offshore oil and gas, backed by significant investment in recent years from the world’s biggest oil companies. Since oil was first discovered in Guyana some 10 years ago, more than 13Bn barrels of oil equivalent (boe) of recoverable volumes have been uncovered in the country. Exploiting those vast fossil fuel resources, particularly in the ultra-deepwater Stabroek Block, has led to an economic boom in the country, with GDP per capita growing from US$6,477 in 2019 to US$18,199 in 2022, according to the World Bank. Oil accounted for 88% of exports in 2022.
But Guyana’s newfound prosperity has not pleased everyone. The country’s vast natural resources have attracted the attention of neighbouring Venezuela and its president Nicolás Maduro, who lay claim to the Essequibo region, and the Stabroek Block, which lies within the region. The territorial dispute between the two countries remains unresolved.
Climate critics, meanwhile, say oil and gas development threatens the country’s vast protected rain forests and natural beauty, and its low-lying coastline is vulnerable to rising sea levels and flooding.
Balancing the “world’s fastest growing economy” and environmental sustainability is Guyana’s president, Dr Irfaan Ali. He believes billions of dollars of revenues from oil and gas production can provide a better way of life for his country’s citizens, while still meeting the country’s ambitions to be net zero. He emphasises the country’s low-carbon development strategy is “a holistic approach to finding that balance, in terms of managing the environment, ensuring the livelihood of the people, promoting economic wealth.”
His beliefs will be put to the test when Guyanese voters go to the ballot box for the general election on 1 September 2025.
