oil guyana pressEarlier this week at an Energy Chamber Conference being held in Port of Spain, Guyana’s Minister of Natural Resources, Mr. Raphael Trotman made the startlingrevelation that a massive offshore column of oil, which may hold 700 million barrels or more was discovered by Exxon Mobil.
Up to this point, Guyana was a poor nation saddled with a sizable external debt with which it has been struggling. It is still relatively under-developed with over 80%
of its land area still under forests. Its GDP has remained positive through the export of: Rice, Sugar, Gold, Timber, Bauxite, Diamonds, Shrimp and Minerals.
Provided that all continues to remains calm, the royalties from this oil find will dwarf Guyana’s roughly $3 billion gross domestic product. The windfall of these
royalties as it enters the energy industry, in spite of the present low oil prices, will dramatically transform this nation. For a country of less than a million
people, the find changes everything. Within a decade Guyana could be completely upgraded by the find, going from unpaved roads and sporadic power to being a developed nation.
Guyana will become a significant oil exporter, and Exxon’s proven reserves and production will be greatly bolstered. Guyana’s GDP is therefore expected to rise
sharply, and may be the highest in the Caribbean. This is the type of find that also helps bolster the beleaguered offshore drilling industry which has been hammered
first by an oversupply of capacity, and then by a glut of oil.
Apart from the potential threat from Venezuela, only corruption and wastage can hinder Guyana’s now very bright and prosperous future. With continued prudent
management a very much transformed Guyana will be showcased in the coming years. Mr. Trotman has indicated that where possible, expertise from T&T will be used to
accelerate their development plans.