Exxon and oil companies are in the news again as government recently passed a bill on oil insurance – liability for pollution and spills. So far, there has not been any oil spill. And Exxon has committed to combating pollution and clean up should there be a spill. New technology on drilling and production have reduced if not altogether eliminated pollution.
It is not forgotten that Guyana’s recent economy has been fueled by oil, which accounts for over half its GDP as well as exports. Guyana has become a major energy player. Exxon Mobil is the main (only) producer of oil. Exxon’s production of oil has been a boon for all sectors of the economy and the population in general. The country has been the fastest growing over the last five years and likely to remain in this category for the next several years.
Huge revenues have been pouring in since oil was first produced and sold in the international market in December 2019. Oil was discovered in 2015. Initially there was 65K bpd. Oil output increased from a mere 100K barrels daily six years ago to 660 bpd two years ago and has remained about the same today. Exxon just received approval for additional production that will lead to greater revenues that will further boost revenues. Production will increase to 800K later this year, and over a million bpd in 2027. In addition, gas will be carried on shore for energy production later this year at Whales. Government is also thinking about to monetize huge gas reserves. So an incredible amount of revenues will be pouring into the country from Exxon alone, not to mention those from other investors.
The economy has been booming. One can visually see progress in the country with massive roadways and other infrastructure work including drainage. There are beautiful modern glossy buildings all over the city of Georgetown and even in rural areas. Families are expanding homes. Almost every home has at least one vehicle; some have multiple vehicles. Even Exxon has been putting up a modern office building.
A proper ecosystem to boost economic diversification is being undertaken. This is no doubt a result of Exxon’s investment and the revenues generated. Guyana has the potential to be a major investment and trading hub all because of investment from Exxon Mobil. Depots or harbors are being considered that will attract major ships for cargoes to other parts of the Caribbean region and Northern South America.
A government reform mission has been underway over the last five years to attract private investment to further transform the economy. Increased private investment has created new jobs and is helping to address inequality. Companies are growing as are profits for most of them. Repatriation of proceeds from investment has not been an issue in Guyana.
As a result of revenues from oil, the country is modernizing its energy and transportation sectors as well as clearing land for housing projects. Whales will begin producing electricity by year end. A brand new spanking modern high bridge over the Demerara River will also be ready by September. More and more housing projects are coming on stream to meet rising demand from locals and the diaspora.
The country’s transformation over the last five years and the oil liability bill are a result of Exxon’s investment.
