GUYANA is now producing around 900,000 barrels of oil per day. What is meaningful about this development lies in how rising production impacts revenues for the state and the government’s ability to improve people’s lives through its expanding public investment program.
The step-up has direct implications for public finances. The government has projected that oil sales and royalties would deliver about US$2.5 billion in 2025. With Yellowtail entering its first full year of production in 2026, annual inflows are expected to rise above US$3 billion, even with global crude prices somewhat dampened by oversupply. Higher volumes give the state a more predictable revenue stream, allowing for robust medium-term budgeting, as it has since oil production began.
The administration is currently preparing its 2026 national budget, and the size of the spending program will reflect the impact of this year’s additional revenue. Guyana will see consecutive increases in the funds available for public investment as production climbs. This fiscal space is already shaping the country’s development. Major infrastructure projects have accelerated, supported by an increase in government spending and spillover economic activity linked to the petroleum sector.
This transformation is visible through the construction of new hospitals, schools, roads, and bridges across the country. Both private and public investments have risen to meet the demands of a quickly growing economy. The construction boom, driven in part by confidence in long-term oil-driven economic growth, continues to reshape the face of the country.
Oil revenues have also catalysed growth beyond the petroleum industry, with expansion observed, and expected to continue in sectors like services, logistics, agriculture and manufacturing. The government has also been investing and stimulating investment in diversification, targeting agriculture, tourism, manufacturing and renewable energy as sectors capable of generating broad-based development. While oil remains the main growth engine, these sectors benefit from its spillover effects.
Guyana’s growing global profile is another outcome of its rising production. International companies have been drawn to the country, and interest in its crude continues to grow. Europe has been the largest buyer of Guyanese oil for years, making the country an important supplier. Guyana’s new production milestone is important for supplying crude oil to the world, but also for the way it gives a small economy the means to remake itself.
DISCLAIMER: The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of the Guyana National Newspapers Limited.