Guyana’s oil helping to prevent price manipulation – US official

By Vishani Ragobeer in La Jolla, San Diego

vishani@newsroom.gy 

Oil produced in the Stabroek Block offshore the tiny South American nation, Guyana is helping to stabilise oil markets and prevent price manipulation, a US State Department official said Thursday.

“The extra oil capacity that Guyana, along with Brazil, Argentina, and the US is adding to the global energy market is already playing a huge role in stabilising the market and making it harder for those manipulating energy prices to harm consumers,” Laura Lochman, the Prime Deputy Assistant Secretary, Bureau of Energy Resources at the United States Department of State, said at the La Jolla Energy Conference in San Diego.

According to her, oil production in Guyana has been fast-growing.

Because of the swift expansion of oil production undertaken by an ExxonMobil-led consortium, Lochman believes the country has already established itself as a major oil producer in the Americas.

Oil production in the 83,000 square miles country only started in December 2019. Production quickly increased to more than 660,000 barrels daily and with additional projects already sanctioned, daily production is likely to increase to about 1.3 million barrels by 2027.

Lochman said these developments are significant.

“In Guyana, the fast-growing oil production is reshaping energy markets and positioning the country as a major oil producer in the Americas,” she said.

Lochman’s comments on Guyana came as she stated that the US wants to be the “partner of choice” for countries in the Latin America and Caribbean region to build and modernise their energy systems. This aspiration, she said, has been a crucial part of the country’s diplomatic outreach.

Outside of the focus on oil production, Lochman also highlighted that the US is also supporting the clean energy goals of Guyana and other Caribbean countries through the U.S.-Caribbean Partnership to Address the Climate Crisis 2030.