Guyana has rapidly transformed into a major player in the oil industry, with Exxon and its partners discovering over 11 billion barrels of oil in the Stabroek Block. The country's crude oil exports are now exceeding 1 million barrels daily, a remarkable achievement considering it started from zero production just a decade ago. The swift development, driven by four floating production vessels, has already yielded 1 billion barrels of oil by September 2023. Exxon, along with Chevron and CNOOC, plans to expand production to 1.7 million barrels daily by 2030, further boosting Guyana's oil output.
Amid this oil boom, Guyana's plans to export liquefied natural gas (LNG) are facing challenges. The government initially launched a tender for LNG development, selecting Fulcrum LNG, a company founded by a former Exxon executive, over established market players. However, the project's progress has stalled due to insufficient natural gas supply. Exxon requires 2 billion cubic feet of gas daily to support its oil production, leaving little for LNG exports.
The Guyanese government now faces a decision: either keep the available gas for domestic use, such as power generation and petrochemicals, or reduce the planned LNG facility's capacity from 6 million to 3 million tons annually. The current gas production comes from associated gas in Exxon's fields, and the company is working with the government to maximize resource recovery and align gas supply with demand. Exxon emphasized the need for gas supply to develop alongside demand, highlighting the complex balancing act required in Guyana's energy sector.