Guyana’s Record-Breaking Oil Boom

Core Insights - Guyana has rapidly developed its oil production capabilities, reaching 900,000 barrels per day by November 2025, making it South America's third-largest oil producer [1][4][5] - The Stabroek Block, covering 6.6 million acres, is key to this growth, with ExxonMobil leading operations and significant recoverable oil resources estimated at around 11 billion barrels [3][4][6] - The production sharing agreement (PSA) between Exxon and the Guyanese government has been highly favorable for the consortium, allowing for a low royalty rate and a significant portion of revenue classified as cost oil [7][9] Production Developments - ExxonMobil's Yellowtail project came online in August 2025, contributing to the overall production increase [1] - Guyana's oil production has grown from zero to nearly one million barrels per day in just a decade, surpassing Ecuador, Colombia, and Argentina [5] - Future production is expected to rise to 1.7 million barrels per day by 2030, driven by four additional projects under development by Exxon [5] Geopolitical and Economic Context - Guyana's emergence as a top oil producer has transformed its economy, elevating it among the wealthiest nations in South America [4] - The favorable PSA was initially offered to attract investment after decades of unsuccessful exploration [8] - Recent revisions to the PSA have increased the government's share of profits, reflecting a response to global criticism [9] Exploration and Future Prospects - Exxon continues to explore additional prospects within the Stabroek Block, including the Hamlet-1 and Lukanani-2 wells [6] - Chevron, a partner in the Stabroek Block, has indicated that the oil reserves may exceed the current estimates of 11 billion barrels [6] - The average breakeven price for oil production in the Stabroek Block is approximately $30 per barrel, one of the lowest in South America [9]