According to a recent S&P Global Platts Report, Guyana is expected to produce 700,000 barrels of oil per day by 2025.
Guyana currently produces 120,000 barrels of oil per day, with experts noting that if the country continues on its current trajectory, it will out produce neighbouring state Venezuela, who was once an oil-producing powerhouse.
“I believe we can see Guyana producing more than 700,000 b/d by 2025. If Guyana continues this trend, it is going to surpass Venezuela […] of course Venezuela has its own problems right now,” said Inter-American Development Bank (IDB) Energy Economist Lenin Balza, who was quoted in the report.
Some analysts predict that Guyana could be producing as much as 1.5 million barrels of oil per day by 2030.
Political tensions intensify
Tensions have been rising between Guyana and Venezuela, as the Caribbean nation ramps up its oil production capacity.
Political tensions have also risen, with the Essequibo region being the site of a boundary dispute.
While the Essequibo region is controlled by Guyana, increasingly the Venezuelans have been claiming it as theirs.
The battle for the oil rich region has resulted in the Guyanese complaining of an elevation in aggressive tactics by their Spanish speaking neighbours, who they note have been carrying out incursions in the region.
Most recently, they noted that Venezuela flew two Russian-made Sukhoi SU-30 fighter jets over the region seven village of Eteringbang.
The Guyanese also made reference to an earlier incident in which 12 local fishermen were intercepted by a Venezuelan naval vessel and were detained, while they were operating off the coast of Waini Point in Guyana’s Exclusive Economic Zone (EEZ).
After regional pressure, which included Venezuela being summoned to the Organisation of American States (OAS) Permanent Council, the fishermen were later released and returned home.