Guyana’s real gross domestic product (GDP) soared by 49.7% in the first half of this year, fueled by a significant rise in oil and gas revenues, according to an official government report.
The oil and gas sector alone experienced a remarkable growth of 67.1% during this period, while the non-oil segments of the economy saw a 12.6% increase, as reported by local media.
Guyana’s GDP has tripled over the past three years, coinciding with the rapid expansion of its oil production. Commercial oil production began in 2019 and has since accelerated rapidly. Between 2019 and 2023, oil output grew at an average annual rate of 98,000 barrels per day, with total production reaching 645,000 barrels per day by last year.
All of Guyana’s oil is currently sourced from the Stabroek Block, operated by a consortium of ExxonMobil, Hess Corporation, and China’s CNOOC. Since operations began, the consortium has made 30 discoveries, uncovering over 11 billion barrels in reserves. ExxonMobil projects that production from the Stabroek Block will reach 1 million barrels per day by 2027.
These developments have transformed Guyana into a major player in global oil supply, with some analysts predicting it could become the second-largest oil producer in South America.
Looking ahead, Guyana’s oil output is expected to exceed 1.6 million barrels per day by 2030, as the government aims to maximize returns before the anticipated peak in global oil demand. If these peak demand predictions do not materialize, the prospects for Guyana’s oil industry could be even more promising.
Meanwhile, the oil industry continues to generate substantial profits for both Guyana and the companies involved in production. Last year, ExxonMobil earned a net $2.9 billion from its operations in Guyana, Hess Corporation made $1.88 billion, and CNOOC recorded profits of $1.52 billion from the Stabroek Block.
Despite receiving less than 20% of the oil revenues, the Guyanese government’s share has been sufficient to drive economic growth to nearly 50% in the first half of this year.