THE global offshore oil industry has seen a major resurgence the past few years, as more spending is put towards new offshore oil projects and investment is slated to reach new levels over the next two years.

Offshore drilling is one of the most technically challenging parts of the oil and gas industry, especially in deep waters, but these areas like Guyana and Brazil have been the site of some of the biggest discoveries in the last few decades.

According to Rystad Energy, offshore spending will account for 68 percent of spending on newly sanctioned projects over the next two years, and “will eclipse $100 billion in 2023 and 2024.”

With Guyana as a prime example of the investments being made in offshore oil, the country is also on a rapid growth trajectory and, according to analysts, is one of the countries driving the global market for floating, production, storage and offloading (FPSO) ships this decade.

FPSOs are some of the largest, most sophisticated vessels in existence and form a key element of oil production in deepwater offshore areas like those in the Stabroek Block.

The FPSO market is on track to close 50 awards for new ships this decade, with Guyana and Brazil accounting for an outsize share of those awards. Of these awards, 12 units will be for Brazil and six units will be for Guyana.

Earlier this month it was announced that Guyana’s Prosperity FPSO vessel will arrive from Singapore by mid-April this year for the Payara project.

Then, in 2024, ExxonMobil’s fourth FPSO vessel ONE GUYANA will come online and is projected to begin production in late 2025. ExxonMobil has indicated that there could be as many as ten floating production storage and offloading vessels (FPSOs) operating offshore Guyana eventually.

Despite many legacy producers of oil and gas calling for a transition away from fossil fuels, new oil producing countries like Guyana are pushing back and pressing ahead with development. In Guyana’s case, the government strongly believes that oil represents the best chance to earn the capital needed to grow the economy, improve the standard of living, and build stronger and more resilient infrastructure.

In May 2022, President, Dr. Irfaan Ali participated in the CARICOM – U.S. forum hosted by Vice President, Kamala Harris for heads of states from 15 Caribbean nations, to discuss the US commitment to advancing co-operation for economic recovery, mitigating the climate crisis, and other areas of concern.

President Ali asserted the view that Guyana retains the sovereign right to develop its natural resources, especially considering the development challenges the country faces and the growing impacts of climate change largely caused by developed countries.

President Ali asked attendees a poignant question: “If you’re locking out new suppliers, it is to whose advantage? We can very well be creating a monopoly for those who are already in the business, who have already extracted this natural resource and developed their own jurisdiction,” he said.

These remarks underscore the position of regional leaders: that developing countries should not be unfairly blocked from development by long-time oil producers in the developed world. Regions that historically have not had the same opportunities, from Sub-Saharan Africa to the Caribbean, are bucking this pressure and putting themselves at the centre of new investments.

Since first oil in 2015, ExxonMobil Guyana has invested billions into several projects offshore Guyana. The country has since progressed on a path towards growth as a nation and an emerging oil producer—in the region and globally.

Guyanese leaders have recognised that the timeline to reap the full benefits of oil and gas development will not last forever and have made it a priority to proceed with development and use the revenues from its oil production to fund key socio-economic priorities such as schools, roads, bridges, and healthcare.

With offshore oil investments skyrocketing and the global offshore industry FPSOs market booming, Guyana is at the centre of meeting demand, providing supply, and reinvesting back into both oil and non-oil sectors.

More oil production should hopefully yield even more investments into the country, and now more than ever Guyana is solidifying its future.