DURING the first half of this year alone, Guyana produced some 20.2 million barrels of oil, which represents an increase of 65.4 per cent from the corresponding period last year. This was outlined in the half-year report recently released by the Bank of Guyana.

The report said that the “petroleum and gas and support services industry expanded by 32.3 per cent,” and that the monthly average output per day ranged from as low as 84,026 barrels, which was largely due to the malfunction of a gas compressor on the Liza Destiny Floating Production Storage and Offloading (FPSO), and surpassed capacity at over 124,941 barrels during the review period.

Further, the report said that this performance averaged 4.1 per cent higher than the 120,000 barrels per day target during the first quarter, but was 30.0 per cent lower in the second quarter.

The petroleum and gas industry also saw an increase in oil prices from higher net demand, as major oil-producing countries limit supply to world markets, while demand increased from the lifting of COVID restrictions in developed countries. “This move is intended to help oil prices recover after the drastic decline one year earlier,” the report noted.

Moreover, the report outlined that Guyana’s crude oil export earnings amounted to almost US$1.3 billion, which is US$858.2 million higher than the same period one year ago.

Added to that, the report said that the volume of crude oil exported during the first half of the year increased by 60 per cent. More specifically, to 20 million barrels, due to production reaching its maximum.

The report also indicated that the average export price received for crude oil increased by 84.9 per cent, or US$29.74 to US$64.78 per barrel from its previous price of US$35.04 per barrel, for which it was sold only one year ago.

A similar report released by the Ministry of Finance indicated that Guyana’s oil exports helped to cushion the country’s export earnings, which suffered a dip due to the novel coronavirus, and the pandemic that it caused.

Because of this, Guyana is one of the few countries that have managed to record positive economic growth, even amid the global tragedies of 2020 that have continued in 2021.