Guyana is having an Oil Boom and that is a Global Game-Changer

Guyana achieved a remarkable milestone by increasing its oil exports by 54%, reaching 582,000 barrels per day (bpd), according to Reuters. 

This surge has firmly positioned the country as a significant player in Latin America, ranking fifth among crude exporters in the region. 

Unlike the heavy, sour crudes traditionally exported by its regional peers, Guyana's sweet, light crude grades have carved out a growing market, especially in Europe.

Why Europe prefers guyanese crude

European refiners have increasingly turned to Guyana for its lighter crude grades, such as Liza, Unity Gold, and Payara Gold. 

These grades are particularly suited for European refineries, which are less complex compared to facilities in Latin America and the U.S. Gulf Coast. 

In 2024, two-thirds of Guyana’s oil exports, equivalent to 388,000 bpd, were destined for Europe, surpassing the previous year’s share. 

This growth reflects Guyana’s strategic advantage of proximity, superior quality, and efficient market access.

Geopolitical dynamics shaping demand

Global geopolitical events have played a significant role in boosting Guyana’s oil market share. 

Following Russia's invasion of Ukraine in 2022, many refiners sought alternatives to Russian crude, propelling Guyana into the spotlight. 

Additionally, disruptions in Middle Eastern oil flows, coupled with rising freight costs for shipping from the Persian Gulf, made Guyana’s crude an appealing choice for European refiners.

Guyana's rapid growth in oil export

Diversifying markets across the globe

While Europe remains the primary destination, Guyana has successfully expanded its reach. Exports to the United States nearly doubled to 23,000 bpd, while shipments to Asia climbed to 139,000 bpd. 

This diversification underscores Guyana's strategic approach to market development, ensuring resilience and adaptability in fluctuating global markets.

Strengthening production and market reach

Guyana’s rapid growth is driven by a consortium led by Exxon Mobil, which has significantly ramped up production through three floating production storage and offloading (FPSO) units. 

With a fourth facility set to add 250,000 bpd of capacity in 2025, Guyana is poised for even greater output. 

Key trading firms, including BB Energy and JE Energy, have successfully marketed Guyana’s crude in Europe, securing competitive premiums.

Looking ahead: a bright future for Guyana

As Guyana continues to increase production and diversify its export markets, the country is becoming a cornerstone in the global energy landscape. 

With strategic investments, geopolitical agility, and a commitment to quality, Guyana is well-positioned to sustain its growth and cement its role as a reliable supplier of premium crude.