If Guyana is to truly make her mark on the global oil market, and survive the implications of the energy transition, she must accelerate her rate of production. Guyana currently produces approximately 650,000 barrels of oil per day (bpd) via three FPSOs in the Stabroek Block. Stacked against giants such as Russia, China, and Saudi Arabia, whose production are within the range of 5 to 19 million bpd, Guyana’s output does not equate to market strength.
Even with titles such as the world’s fastest growing economy for the past five years, Guyana must increase production to be in the big leagues; to have greater influence and for that to translate into real economic power.
This poignant perspective was offered on Tuesday during the budget 2025 debates by Minister of Culture, Youth, and Sport, Charles Ramson Jnr.
The official was at the time, delivering a gut wrenching rebuttal to arguments made by his opposition colleagues. Not only did Ramson lay bare some of the most appalling transgressions of the APNU+AFC legacy during the 2015 to 2020 period, but he also schooled them on the importance of accelerated production in the ExxonMobil-operated Stabroek Block.
Ramson noted that while Guyana’s reserves are touted to be among the best in the world, what really matters is timely production.
The minister, who holds a master’s degree in Oil and Gas Enterprise Management from the prestigious University of Aberdeen, outlined that at 650,000 bpd, Guyana is not even part of the top 25 producers list. “America currently produces 22 million barrels of oil. Russia produces 10 million barrels of oil per day. Saudi Arabia, 11 million barrels a day. We are at 650,000 barrels a day. We have to rapidly increase our production, otherwise, we are not in the big leagues,” the minister said.
With Guyana poised to hit over 1.3 million barrels of oil by 2027, Ramson made another critical point–now is the time for Guyana to take the loans it can in order to finance its development needs. The implicit understanding is that as production soars, it becomes harder for Guyana to take loans, the interest rates would also not be as concessional. Also compounding this state of affairs is the well accepted forecast that the energy transition will force oil prices to decline in later years.
Ramson said, “This is what the parochial thinkers on the other side don’t understand… we are competing with other countries. Countries like the United States that are making major investments in development today…they are making a renovation investment on their airport worth US$18 billion.”
The minister said this is a concept that leaders within many other nations understand, but sadly, Guyana’s opposition remains far out at sea.
