2023 – OPEC

non-OPEC producers

While Guyana is already producing over 300,000 barrels of oil per day in just the Stabroek Block, the Organisation of Petroleum Exporting Countries (OPEC) is projecting that Guyana will add another 90,000 barrels of oil per day (bpd) production in 2023.

This is contained in OPEC’s first monthly report for 2023. In that report, OPEC lists Guyana among the company of six leading non-OPEC countries - the United States (1.15 million bpd), Norway (270,000 bpd), Brazil (200,000 bpd), Canada (190,000 bpd), Kazakhstan (160,000) and Guyana.

These countries, according to OPEC, will be the key drivers in the growth of oil supply from non-OPEC states. In the case of Mexico and Russia, who were included on the list, OPEC actually projected a drop in the barrels of oil per day being produced.

In particular, OPEC noted that “the main drivers of liquids supply growth for 2022 are expected to be the US, Russia, Canada, Guyana, China and Brazil, while production is expected to see the largest declines in Norway and Thailand.”

Lottery Numbers

Guyana, with US oil giant ExxonMobil as the operator, began producing oil on December 20, 2019, in the Stabroek Block. Guyana’s oil revenues are being held in the Natural Resource Fund (NRF) at the New York Federal Reserve Bank, where it is earning interest.

The oil rich Stabroek Block, which is producing the oil, is 6.6 million acres (26,800 square kilometres). Exxon, through its local subsidiary Esso Exploration and Production Guyana Limited (EEPGL), is the operator and holds 45 per cent interest in the Block.

Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.

Last month, the United States-based Hess Corporation announced yet another oil discovery offshore Guyana in the oilrich Stabroek Block, where there is an estimated 11 billion-plus barrels of oil equivalent (boe) recoverable resource.

The discovery was made at the Fangtooth Southeast-1 (Fangtooth SE1) well located approximately eight miles southeast of the original Fangtooth-1 discovery. The new discovery also came on the heels of a January 2022 oil find at the Fangtooth-1 well.

Currently, the Liza phase 1 and phase 2 developments in the Stabroek Block are operating at a combined gross production capacity of more than 360,000 barrels of oil per day (bpd) using the Liza Destiny and Liza Unity floating production, storage and offloading (FPSO) vessels, respectively.

The third development in the Stabroek Block –Payara – is on track to come online by the end of 2023 with a gross production capacity of approximately 220,000 bpd. While this may be the gross production capacity, it is expected that the start-up will see a much smaller number of oil barrels being produced. For instance, when the Liza Phase two started in 2022, it was producing significantly less than its current production.

Meanwhile the Yellowtail – the fourth development – is slated for 2025 with a production capacity of some 250,000 bpd. Both these development projects have been approved by the Guyana Government.

Uaru is the fifth development and is expected to come online at the end of 2026 with a gross production capacity of approximately 250,000 bpd with first oil anticipated at the end of 2026. The development plan for Uaru was submitted for Government approval in November 2022 and final approval is expected by the end of the first quarter of this year.

ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027. They are meanwhile seeking project approval for their sixth oil development in Guyana’s waters, approaching the Environmental Protection Agency (EPA) for environmental authorisation for its Whiptail Project.

The move to seek approval for the Whiptail development comes even as Environmental Protection Agency (EPA) is also considering whether to approve the Uaru oil development in the Stabroek Block. (G3)

Editor: Tusika Martin

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Another deadly week on our roadways

Yet again, Guyana experienced another deadly week on the country’s roads with several fatalities occurring. This is in addition to the numerous other persons who lost their lives already in a year which is only one month old. These accidents are all due to some form of recklessness by drivers, or in some cases carelessness by motorists and pedestrians themselves.

We are indeed convinced that the efforts being made by law enforcement and other authorities to reduce the alarming rate of road accidents are not achieving the desired results. This year will go down as yet another year when Guyana experienced some of the most horrific road accidents resulting in the loss of lives and injuries to countless others. We are very much concerned about the number of persons losing their lives on our roadways. Too many families have been broken as a result of losing a loved one due to a road accident, most of which could have been avoided.

The reasons for the high rates of road accidents are well known, and there is no need to rehash them here except to say that, while there are various factors which impact on road safety, there is little doubt that the single most important in a general sense is enforcement of the traffic laws. The Government has enacted the relevant legislation in relation to driving under the influence, loud music in vehicles, overloading, speeding, etc, but if the laws are not adequately implemented, they become useless. It would be interesting to find out how many of the drivers/ conductors who are stopped for breaking a traffic law/s are actually charged and brought before the courts. It should also be mentioned here that in some cases, police officers themselves are engaged in breaking the traffic rules; eg, by speeding or driving the influence and hence are the source of some of the accidents we currently experience.

While it is not our intention to paint the entire Police Force with the same brush, as there are many professional and honest officers within the Force, we are convinced that unless what is perceived as the endemic corruption in the organisation, and the traffic section in particular, is addressed in a systematic way, we will not achieve the desired results.

Further, in addition to enforcement of the traffic laws, there are several actions which could be taken immediately to reduce the number of road accidents here. Additionally, the authorities should start fixing all the potholes in our streets and highways which no doubt pose a serious threat to people’s lives.

Additionally, the authorities should immediately start clearing the parapets and roadways of all encumbrances such as old, abandoned vehicles, tractor trailers, carts, etc, as these have been known to contribute to accidents. At the same time, tougher action should be taken against persons who are bent on encumbering the roadways.

We had also made the point before that Guyanese need to move away from the culture of disregard and irresponsibility in relation to using the roadways. The Education Ministry and other relevant stakeholders should examine the possibility of strengthening the school’s curriculum with the aim of increasing knowledge, skills and understanding among children and young people about the responsible use of our roadways. Similar efforts should also be made targeting the adult population as they, too, are sometimes found to be irresponsible when using our roadways.

We believe the time has come for all stakeholders to return to the drawing board and re-examine their approach to road accidents since what currently obtains has failed the nation.

For a small country such as ours, we cannot afford to continue along this path. The number of deaths and disabilities as a result of road accidents is indeed very worrying, and something must be done urgently to bring a halt to the level of irresponsibility and recklessness on our roadways.