Guyana, once among South America's most impoverished nations, is experiencing an epic oil boom. In a mere four years, the country of less than one million went from first discovery to first oil and is now lifting over 900,000 barrels per day. There are signs of significant production growth ahead. This is occurring at a crucial time for a world experiencing an energy crisis after oil spiked to well-over $110 per barrel after Iran closed the Strait of Hormuz in retaliation for U.S. and Israeli airstrikes.

Guyana's oil boom is significantly reducing the Americas' traditional dependence on Middle East petroleum. By February 28, 2026, Guyana was lifting 926,550 barrels per day, securing the former British colony's place as South America's second largest oil producer behind Brazil and ahead of Venezuela. There is significant growth ahead for a country described by analysts as a major non-OPEC contributor to global oil supply growth.

An ExxonMobil led consortium has made over 30 major discoveries in the prolific offshore 6.6-million-acre Stabroek Block, where the supermajor is the operator holding a 45% working interest. Chevron, through its 2025 acquisition of Hess, controls 30% with the remaining 25% held by Beijing controlled CNOOC. To date Exxon's discoveries are estimated to hold at least 11 billion barrels of crude oil.

The consortium has developed four facilities in the block, Liza Phase 1, Liza Phase 2, Payara, and Yellowtail, with a further four projects in varying stages of development. The $12.7 billion 250,000 barrel per day Uaru facility is nearing the end of construction and is expected to come online late this year. This will lift Guyana's petroleum output to over 1.1 million barrels per day. A sixth project, Whiptail, will commence operations in 2027 adding 250,000 barrels per day to the tiny country's oil production lifting output to nearly 1.4 million barrels daily.

The seventh development to be sanctioned in the Stabroek Block is the Hammerhead facility. If construction goes to plan, this project will come online in 2029 adding 150,000 barrels per day to Guyana's petroleum output. An eighth major project Longtail is in the planning stage with Exxon recently submitting an environmental impact assessment study. The Longtail development will receive a final investment decision (FID) this year with a planned start-up during 2030.

This operation is different from earlier projects because it is targeting natural gas and condensate reservoirs. Longtail will have capacity to lift 250,000 barrels of condensate and 1.2 billion cubic feet of natural gas per day. This is a crucial development for a region where natural gas supply is dwindling, particularly in the Caribbean where Trinidad and Tobago's dwindling reserves caused natural gas export to plummet by 40%.

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By 2030, it is anticipated Guyana will be pumping around 1.7 million barrels of oil per day, cementing the former British colony's place as South America's second largest oil producer. This will go some way to addressing the energy security risks facing the United States and other countries in the Americas, particularly those which arose after Israeli and U.S. strikes on Iran. Tehran in response to airstrikes closed the Strait of Hormuz which is a major choke point for world energy supply with around a quarter of all oil consumed globally passing through the waterway daily.

Already, around a third of Guyana's oil exports are destined for the U.S. with another two thirds bound for Europe. During 2025, the U.S. imported an average of 208,000 barrels per day from Guyana, which despite being the largest quantity from any South American country, only represents 3.4% of all petroleum imported that year. As Guyana's oil production grows with the completion of the facilities currently under development the country will provide additional oil shipments to the United States, reducing dependence on the Middle East.

U.S. President Trump's intervention in Venezuela, which saw illegitimate President Nicolas Maduro captured in a daring night raid, eliminated the main threat to Guyana's flourishing oil boom. You see, during 2023 Maduro escalated his aggressive campaign against Guyana in an attempt to seize control of the Essequibo. Venezuela's illegitimate leader was even threatening to use the military to annex the territory.

This dispute, which dates back to the 19th century, threatened Guyana's territorial integrity. You see, the mineral rich Essequibo accounts for around 70% of the former British colony's landmass. Maduro's aggressive saber-rattling endangered Guyana's thriving oil boom. The Essequibo's territorial waters contain the prolific Stabroek Block. As part of Caracas' aggressive saber-rattling, Venezuela's coastguard was making threatening incursions into the Stabroek Block, while land forces were amassing along the border with Guyana.

The tiny South American country of less than one million is now one of the fastest growing non-OPEC contributors to global petroleum supply. Guyana's oil production is forecast to reach 1.7 million barrels by 2030, with most of that output destined for export. With Guyana less than 3,000 miles (4,828 kilometers) from U.S. Gulf Coast refineries this will enhance energy security for the world's largest economy by reducing dependence on oil shipped through the Middle East.

By Matthew Smith for Oilprice.com

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