How tiny Caribbean island transforms the global energy market

A little island in the Caribbean with a population of around 800,000 is thought to be sitting on a goldmine following the discovery of several billion barrels of offshore oil reserves, which is now changing the global energy landscape.

Since the discovery in 2015, Guyana’s oil industry has attracted billions in international investment. New legislation passed by Guyana’s parliament is expected to encourage new production and ensure that the small country earns a significant share of its oil revenues in the coming decades.

As reported by the expert portal Oil Price, the overall value of the discovered crude oil reserves is valued at around half a trillion dollars. By 2028 the island plans to increase its production outputs to around 1.2 million barrels per day (bpd), which would be 1.1% of global supply.

American Exxon Mobil has been the biggest investor in Guyana’s oil industry, dominating the exploration and drilling activities, with another 35 new offshore exploration and appraisal wells to be set up. They will be leading those activities and co-operating with US oil company Hess and China’s China National Offshore Oil Corporation.

The island managed to capture a larger share of the European market than before, increasing exports to the continent to 215,000 bpd in the first trimester, which is equal to around 63% of the country’s total exports. Other markets include Asia, where Guyana exports around 90,000 bpd and Brazil, 22,000 bpd.

This rise in exports reflects the changing geopolitical structure of the global oil industry, with many European refiners looking for new crude suppliers following the sanctions introduced on Russian oil in 2022. The ongoing war between Russia and Ukraine forced many refiners to establish new partnerships in alternative oil markets, with Guyana’s strong oil potential over the coming decades looking highly attractive.