Among the oil and gas jurisdictions in the world, Guyana has done so well in its management of the industry that it is ranked 10th for competitiveness in exploration and production by internationally respected business intelligence firm, IHS Markit.
Markit’s Vice President, energy expert, Daniel Yergin, revealed this during last week’s International Energy Conference and Expo, in a remote address.
“Guyana today, is in a competitive position. IHS Markit [Petroleum Economics and Policy Solutions] PEPS analysis ranks it as the 10th most competitive jurisdiction for upstream [Exploration & Production] investment out of 45 countries, and I hasten to add, ahead of Brazil and ahead of Argentina. That’s a position that Guyana should strive to maintain.”
Guyana, Yergin said, is proving to be a model for how to get things done, and for developing institutions that the times require.
“A regulatory system that meets the need of the people and an environment of standards that will provide sustained revenues for development and rising standards of living. A framework for the development of the country’s resources in an appropriate way and in an environmentally responsible way that will work for the people of Guyana.”
He added that an important message is being sent to companies around the world that Guyana has a trustworthy investment climate which will bring investment and partners into other sectors.
Markit’s assessment is that the main challenge for Guyana is managing the flow of money to the country to prevent overheating and distortions of the economy. Vice President Dr. Bharrat Jagdeo has said that while overheating is a fair concern, the Government is keeping careful watch.
This caution will be especially pertinent as Guyana’s revenues balloon. With current production, Guyana is already expecting almost US$1 billion this year. Its recoverable resource, according to analysts, is also expected to balloon.
Yergin said, “We estimate currently that it’s in excess of 13.5 billion barrels of oil equivalent with another yet to find potential 9.3 billion of oil equivalent remaining. That makes the ultimate recovery total something like 23 billion of oil recovery…”
Yergin said he expects this number to rise even further as companies test new geological plays and sub-plays.
