• 4 minutes Blackouts in Australia
  • 7 minutes Big Oil Costs Can't Go Much Lower
  • 14 minutes The moves toward 'zero-manning' in oil & gas
  • 8 hours Jan's Electric bike replaces electric cars
  • 16 hours gas lines set 70 houses on fire simultaneously in Massachusetts, live now.
  • 22 hours Tesla Will Fix Its Cars In-House
  • 2 hours Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory
  • 1 day Meeting For Better Peninsula: Kim Jong Un Will Meet Moon Jae In Pyongyang
  • 17 hours 100% Renewables will Fuel the Growth of Poverty and Homelessness
  • 1 day Coca-Cola eyes cannabis
  • 7 hours Bezos Rips Trump For ‘Dangerous’ Attacks on The Media
  • 1 hour Making Safe Nuclear Power from Thorium
  • 1 day Taller Is Better: A Race for Windmills
  • 12 hours Senate cancels postal service hearing
  • 15 hours Germany Should have Gone with Nuclear
  • 1 day Oil Higher As U.S. Iran Sanctions Raise Supply Concerns
Alt Text

The Downside For Oil Is Limited

Oil prices ended the week…

Alt Text

Norway’s Offshore Oil Boom Is Back On

The race for the no.1…

Alt Text

Texas Oil Production Continues To Soar

Texas’ Permian Basin crude production…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

ExxonMobil Could Turn Guyana Into A Major Oil Producer

ExxonMobil Could Turn Guyana Into A Major Oil Producer

Not typically thought of when considering major oil exporters, one small country holds significant potential to join the ranks of some of South America’s much larger oil producing powers.

Guyana, located along the northern coast of South America, is not an oil producer of any significance. But that could change if the large reserves of oil and gas located offshore are successfully produced.

ExxonMobil drilled one well that is causing quite a stir. In May 2015, the company announced that it had encountered oil at its Liza-1 well in the Stabroek Block, about 120 miles off of the coast of Guyana. Related: Forget Media Hype. Oil Set To Rebound

ExxonMobil now thinks that its discovery could hold as much as 700 million barrels of crude. Although it may be too early to tell if ExxonMobil can ultimately recover that much oil, the discovery in the Stabroek Block could be worth as much as $40 billion at current prices. Related: Is This Quietly Becoming The World's Best Place To Drill For Oil?

That is the equivalent to more than 12 times Guyana’s entire GDP. Needless to say, if all goes according to plan, such a volume of oil would change the fortunes of the country. “A find of this magnitude for a country like ours, which sits on the lower end of the scale of countries in this hemisphere, this could be transformational,” Raphael Trotman, Guyana’s minister of governance, said in an interview on July 20. “From my sense, from speaking to experts outside of Exxon, it has to be something excess of 700 million barrels.” Related: Natural Gas Needs To Clean Up Its Act

There are other companies that have acreage off the coast of Guyana, which will undoubtedly see the value of their assets rise after ExxonMobil’s discovery. Hess and China’s Cnooc are working with Exxon on the Liza-1 well. Anadarko and Tullow Oil are sitting on some of the largest acreage off the coast of Guyana. And a small Canadian company, CGX Energy, along with Pacific Rubiales, another Canadian operator, have acreage close to the Liza-1 well. All of these companies stand to benefit as their assets are now more attractive following ExxonMobil’s success.

For now a lot will depend on what ExxonMobil is able to do with the Liza-1 well. The company is optimistic – it says that it may be able to begin production within five years.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Tess on August 26 2015 said:
    As a Guyanese expat who gets saddened when reading how my nation in A World Health Organization study in 2012 found Guyana to have the highest suicide rate in the world, four times the global average, I'm ecstatic about this and pray that my country will see prosperity that will enrich every citizens livelihood

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News