Guyana’s Oil and Gas Industry: Boon, Bane, and the Road to Renewables

The Rise of an Oil Superpower

Guyana has rapidly transformed from a quiet, resource-rich nation into one of the world’s fastest-growing oil producers. Since ExxonMobil’s 2015 discovery of an estimated 11 billion barrels of oil offshore, production has soared. By May 2025, Guyana’s oil output reached a record 667,000 barrels per day, with projections to hit 1.3 million barrels per day by 2027 and potentially 1.7 million by 2030. This makes Guyana one of the largest oil producers per capita globally.

Oil has fueled an economic boom—Guyana’s GDP growth topped 40% last year, and government revenues from oil are expected to reach $2.5 billion in 2025. The influx of wealth offers opportunities for infrastructure, education, and poverty reduction in a country of just 800,000 people. However, rapid growth brings risks:

• Governance and Regulation: Critics warn that Guyana lacks the legal and institutional frameworks to manage oil wealth, risking corruption and inequality, as seen in other resource-rich nations.

• Environmental Threats: Offshore drilling increases the risk of oil spills, threatening fisheries and biodiversity. Rising sea levels also endanger the low-lying capital, Georgetown.

Guyana’s oil sector is dominated by a consortium of ExxonMobil (U.S.), Hess (U.S.), and CNOOC (China), which control all current production. Other major companies—including BP, Shell, Total, PetroChina, and trading giants like Vitol and Glencore—have been shortlisted to market Guyana’s crude.

Despite its oil boom, Guyana is making tentative steps toward renewables:

• Solar Initiatives: The Leguan solar farm, set to launch in May 2025, will provide 600 kW of clean power to 3,000 residents, reducing reliance on diesel and stabilizing local energy costs.

• Policy Efforts: The government is engaging oil majors on integrating renewables and green hydrogen into operations. It has also implemented a carbon tax on flaring emissions, signaling a commitment to lower-carbon development.

• Carbon Credits: Guyana has sold $250 million in carbon credits, leveraging its vast rainforests to remain carbon negative even as oil production rises.

To ensure oil wealth benefits all Guyanese and future generations, the country must:

• Strengthen Governance: Build transparent institutions to manage oil revenues and avoid the “resource curse”.

• Invest in Diversification: Expand renewable energy and other sectors to reduce dependence on oil and foster sustainable growth.

• Protect the Environment: Enforce strict environmental safeguards and invest in climate resilience, especially for vulnerable coastal regions.

• Promote Social Equity: Use oil revenues to improve education, healthcare, and infrastructure, ensuring benefits reach all communities.

Guyana’s oil industry has catapulted the country onto the global stage, offering unprecedented economic opportunities. However, balancing fossil fuel development with environmental stewardship and social equity will be crucial. Continued investment in renewables, transparent governance, and climate resilience will determine whether oil is a blessing or a burden for future generations.

African & Caribbean Energy Network (ACEN)