–supports oil production thrust, sees renewable energy as a complement not substitute, US official says

WITH rapidly growing oil production, Guyana is on the verge of becoming the world’s largest oil producer per capita, surpassing Qatar and Kuwait.
“It’s probably one of the greatest stories of the last five years. It’s seen as some of the greatest offshore opportunities in the world,” US Special Envoy for Latin America, Mauricio Claver-Carone, told a Tuesday press briefing ahead of US Secretary of State Marco Rubio’s visit to Guyana.

Claver-Carone said that the US administration is keen on supporting countries like Guyana, recognising the immense potential of its oil development.
He related: “We saw in the previous administration, in the Biden administration, that countries like Guyana were asked to almost halt their development and progress in favour of renewables.”
While the US acknowledges the importance of renewables, it views them as complementary to oil production rather than a replacement.

The administration is focused on helping Guyana succeed while also safeguarding it from emerging threats to its energy sector.
Claver-Carone said: “We want to see Guyana succeed. We want to see it develop. We believe renewables are complementary in that regards and are not a substitute. So, we want to support Guyana in this development but protect it also from the threats being posed.”
He related that Guyana’s security too remains a ‘key priority’ as the country continues to face aggressions from Venezuela, which is attempting to assert claims to the country’s territory.

The US official referenced the Bolivarian Republic’s recent incursion into Guyana’s water.
A Venezuelan naval vessel, the ABV Guaiqueiri PO-11-IMO 469552, entered Guyana’s Exclusive Economic Zone, coming dangerously close — approximately 700 metres—to the FPSO PROSPERITY, which was operating lawfully under a licence issued by Guyana.
The Venezuelan vessel made threatening radio communications, falsely claiming that the FPSO PROSPERITY was operating in Venezuela’s Exclusive Economic Zone.

It then proceeded southwest, repeating the same aggressive message to other FPSOs operating in the region.
Claver-Carone said: “We’ve seen the threats from Venezuela. We’ve seen the approaches towards Exxon facilities. Obviously, that’s unacceptable and we want to work together to ensure binding – and find an agreement towards binding security co-operation.”
December 19, 2024 marked five years since Guyana joined the ranks of oil-producing nations.

ExxonMobil’s operations, in partnership with Hess and CNOOC, have reached a production capacity of approximately 650,000 barrels per day (b/d), accumulating over 500 million barrels of oil produced.
These achievements were built on the foundation of strategic investments and operational learnings across three key developments: Liza One, Liza Two, and Payara.
The ripple effects of the oil boom are evident across various sectors. From infrastructure to public services, the government has prioritised ensuring that oil revenues translate into tangible benefits for the population.
Key among these is the revolutionary gas-to-energy project, slated for completion in 2025. This project will utilise offshore natural gas to replace heavy fuel oil for power generation, reducing electricity costs, cutting emissions and contributing to the stabilisation of the country’s energy supply.

REGIONAL GROWTH
Guyana has also emerged as a “significant influence” on the Caribbean economic growth, with the region reporting an 8.8 per cent growth in 2024.
Examining the region’s key economic trends, the Caribbean Development Bank’s (CDB’s) Director of Economics, Ian Durant, last week, stated that Guyana was a standout performer with its economy surging by 43 per cent.

“When we include Guyana’s performance, regional growth rises to 8.8 per cent in 2024, up from 6.6 per cent in 2023,” Durant said.
Guyana’s growth is fuelled by the country’s increased oil production and continued expansion in its non-energy sector. Further, regional growth is expected to remain moderate in the year 2025.
“The country’s (Guyana) performance will remain a key contributor to the region’s economic growth. The region is forecasted to grow by 4.6 per cent.,” Durant said.