THE Inter-American Development Bank (IDB) predicts, in its 2024 Latin American and Caribbean Macroeconomic Report, that Guyana’s fast-paced oil production, among other factors, could contribute to the stabilisation of global oil prices.

Despite decreasing production in Organization of the Petroleum Exporting Countries (OPEC) countries, oil prices are predicted to remain steady because of a mix of factors including a bigger supply of crude oil from record output from the United States, Guyana, and Brazil, and lower demand from slower-than-expected growth in 2024.
The report read: “The combination of lower demand due to slower expected growth in 2024 and a greater supply of crude oil, thanks to record output from the United States, Guyana, and Brazil, will likely keep oil prices stable despite lower production in OPEC countries.”

Earlier this year, the Director of Economics at the Caribbean Development Bank (CDB), Ian Durant, said that the Caribbean region’s economy is well on its way to making a full rebound from the shocks brought on by the global COVID-19 pandemic and other international crises, and Guyana’s increased production of its oil and gas resources has been “a significant driver” of regional growth.

He related that global trade and supply challenges compounded by international geopolitical crises, such as the Russia and Ukraine war and the most recent conflict in Palestine, saw the increase in international commodity prices; however, the Caribbean region has remained resilient and continue to rebound from the economic shocks.
According to Durant, the CDB estimated that the region grew by 6.7 per cent with higher oil production in Guyana being a large contributor to the average regional growth in 2023.
According to the CDB, the country’s production increased by 35.2 per cent, and this influenced growth in non-oil sectors, contributing to the overall expansion of the country’s economy by roughly 32.9 per cent.

Economic activities in other oil-producing Caribbean nations such as Suriname and Trinidad and Tobago also expanded.
“By the end of 2023, 11 of borrowing members had overtaken pre-pandemic output levels …higher oil production in Guyana was a significant driver in average regional growth in 2023,” Durant told the news conference.

The CDB forecasts that an average growth of 8.6 per cent for its 19 borrowing countries in 2024, increases in commodity exports by 18.2 per cent, and an increase in service exporters by 2.1 per cent will contribute to further growth.
The further growth of the region, Durant said, will be “largely attributable to increased oil production in Guyana and continued expansion of the [regions’] tourism industry.”

The CDB’s Director of Projects, Therese Turner-Jones, in an invited comment to this publication, said the institution shares an excellent relationship with the Government of Guyana, and will be open to developing projects in renewable energy
“We are keen on investing in energy projects once we are invited…,” Turner-Jones said.