Introduction
Last week’s column displayed, in brief, the crucial macroeconomic foundations to my assertion that, recently, Guyana has become the newest Petrostate in the Americas. The data reveal a historically unprecedented explosive growth of crude oil activities in Guyana’s economy-wide aggregates, such as income growth, export earnings, import spending, fiscal revenues, and so on. As promised last week, today’s column will display the microeconomic – supply demand, markets prices and decision making foundations on which this assertion rests.
Microeconomic Indicators
DROP 2021-2023
Combined, the Guyana National Budgets 2023 and 2024 report in some detail the official data on the performance of the microeconomic behaviour of its rapidly emerging oil and gas sector. Basically, as reported, crude oil output had expanded from 43 million barrels in 2021 to 101 million barrels in 2022; that is an increase of 125 percent, when compared to just 43 million barrels in 2021.