Bharrat Jagdeo has repeatedly stated that the government intends for the country to produce oil in a net zero world. The crude blends encountered offshore Guyana are also among the lightest and sweetest in the world. Guyana’s oil is set to outlast that of many other deepwater producers because of two main factors – quality and cost to produce.īreakevens for the projects ExxonMobil has brought onstream are all between US$25 and US$35 per barrel. The only deepwater producer Rystad Energy expects to be above Guyana by then is Brazil, with close to 5 million barrels of oil per day. In 2035, where the projection ends, Guyana is still shooting upward at about 1.7 million barrels per day. “By 2033, we see Guyana overcoming the US Gulf of Mexico’s output and becoming the second largest deepwater crude producer in the world,” the analyst said.īy then, Rystad Energy also projects that all but three deepwater producers will have production levels below a million barrels a day. Guyana’s deepwater development projects at the ExxonMobil-operated Stabroek Block will reach a combined capacity of 340,000 barrels of oil per day (bpd) this year.įorestieri explains that by 2031, the country is expected to soar beyond one million barrels per day, already overtaking Norway and Angola to be the third largest deepwater producer in the world. She said, “As projects come online, we see Guyana and Suriname ramping up production in a very important, very successful way.” This is according to analysis from Sofia Forestieri, Latin America analyst for Rystad Energy, during the Caribbean Oil & Gas Virtual Summit last week.ĭuring her presentation of the Caribbean oil & gas industry’s competitive landscape, Forestieri compared the prospects of Guyana and Suriname to the leading deepwater producers around the world, including countries like Norway, the United Kingdom, Mexico and the United States. It is also that, while Guyana’s production grows in the 2030s, most leading offshore deepwater producers will see their production levels wane. But it isn’t just the likely longevity of Guyana’s oil industry that is striking. West Texas Intermediate dropping to around $48 a barrel, while Brent crude oil dipped to around just above $50 a barrel in the last week.Authorities in Guyana say the country is committed to supporting an aggressive exploration and production programme off of its coast since it sees revenues coming in from the oil and gas sector as playing a key role in the transformation of the South American nation.Īnd according to Norway-based Rystad Energy, that may very well be the case. While oil prices rose as much as 20 percent solidly above $50 a barrel when the deal was struck in November of last year to curb output, they have come off this year with U.S. "Deep-water remains a big boys' game, it's not for everyone," said Rodger. "The majors are showing signs they are looking at this resource class again," he said, citing examples of BP's M&A transactions in Egypt and Senegal, and Statoil and Total's deals in Brazil.īecause of the long project timeline and large investment capital involved, the market can expect large companies to dominate deep-water exploration as medium-size players have all but gotten out of the space to put their money into lower cost shale instead, Rodger said. With three big deep-water projects approved so far this year, Rodger says he expects a total of eight projects overall in 2017 - the same as combined total for 20. "Over time, we see much more of a leveling of the playing field than we've seen in the last few years ," Rodger said. shale oil producers to an average $35 per barrel, Reuters reported. Shale oil is competitive in the current price environment around $50 a barrel as OPEC and non-OPEC producers work to curb output by almost 1.8 million barrels per day (bpd) in the first half of this year.Ī report from consultancy Rystad Energy issued in February pegged the break-even price for U.S. Projects in the Gulf of Mexico are leading the way, with breakeven likely moving below $50 per barrel of oil equivalent, down from above $70, potentially giving shale oil a run for its money. Producers are reducing the cost of their deep-water projects by making them smaller and producing fewer barrels while trying to remain profitable, he told CNBC's " Squawk Box". "It's not so much innovation, it's more a change in mind-set," said Wood Mackenzie's upstream oil and gas research director, Angus Rodger. The U.S. shale boom shaking the oil industry is changing the way deep-water oil exploration projects are carried out as producers move to scale down these mega-operations, a researcher said Thursday.
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