Even as Guyana, a still, substantively underdeveloped country, impatiently awaits the envisaged returns from what is now universally referred to as a ‘world class’ oil and gas sector, analysts are proffering their own separate prognoses of the extent to which the energy sector could shift the material foundations of a country that had, at one time, been characterised as a “Banana Republic.”
These days, the perspectives of the global analysts have shifted, their prognoses placing what is still, in many respects, an underdeveloped country, in what they now describe as a ‘world class’ category, in the period ahead.
The latest, arguably most stunning prospects proffered for the country’s oil and gas sector, have reportedly come from ExxonMobil Chief Executive Officer, Darren Woods, who is quoted in an April 26 Oil Now report as saying that Guyana is heading to become the most successful deepwater development in history.
Given the imponderables that have, over the years, come to be associated with oil as a factor in countries’ socio- economic development, Woods’ prognosis could mean anything ranging from the country leaving the oil-rich Arab countries trailing in its wake, to a condition of ‘non-starter’ in the oil and gas industry on account of one of two factors. The first is the possibility that, sooner or later, oil could become the villain of the piece insofar as the environmental bona fides of the planet are concerned. On the other hand, there is nothing to say that Guyana, recklessly managed, could not become reduced to a wealth-induced socio-political meltdown that could transform the country into a ‘filthy rich’ geographic free-for-all space.
From a petro perspective, Woods says that he believes “Guyana will go down as one of the most successful deepwater developments in the history of the industry.” This was one of the standout remarks which he made recently during the company’s 2024 first-quarter earnings call.
If what Woods reportedly had to say may, in the short-term, make an enticing sound bite to a country that is still decidedly wet behind the ears insofar as the vicissitudes of the oil and gas sector is concerned, the imponderables that inhere therein still make what the Exxon boss said, a pronouncement that can hardly, on its own, be said to be ‘bankable’ as far as the future socio-economic development of Guyana is concerned.
In what was, in effect, a pointed ‘PR piece’ for the Guyana/Exxon ‘team’, Woods reportedly alluded to the “tremendous value” which Exxon had created in Guyana as operator of the Stabroek Block, which he reportedly described as “the world’s most premier deep-water development.”
The ExxonMobil CEO according to the report, said in his presentation that the company had commenced production in 2019, with production upping to more than 600,000 barrels per day within the first quarter, an assignment which he reportedly said had been completed ahead of schedule and below cost, and, moreover, that the project had “reached its target production of 220,000 barrels per day (b/d) in January, two months after start-up and well ahead of the industry average of 15 months.”
“All three FPSOs are now producing above their funding basis, helping to drive record gross production in the first quarter, all with an emissions intensity amongst the lowest in our Upstream portfolio,” Woods is quoted as saying.
The Exxon Executive, in his presentation, also reportedly undertook an image-burnishing assignment on behalf of the global oil giant, asserting that its work in Guyana “delivers tangible benefits for the Guyanese people, including driving the highest growth in real gross domestic product (GDP) in the world.”
Noting that production, which commenced back in 2019 had reached “more than 600,000 barrels per day (b/d) in the first quarter,” the Exxon CEO is reported as saying that this accomplishment was attributable to “the start-up of the Floating Production, Storage and Offloading (FPSO) vessel,” which, he asserted, had been completed ahead of schedule and below cost.
In terms of Exxon’s contribution to the Guyana economy, Woods is quoted in the report as saying that “Exxon’s work in Guyana delivers tangible benefits for the Guyanese people, including driving the highest growth in real gross domestic product (GDP) in the world. He also expressed that the oil and gas industry directly supports thousands of local suppliers and Guyanese workers.”
