Guyana’s Oil Exports Soar 54% Amid European Demand
A New Player in the Global Oil Market
Guyana, a small South American nation, has emerged as a significant player in the global oil market. Its oil exports surged 54% last year, reaching an impressive 582,000 barrels per day (bpd). This remarkable growth is largely attributed to European refiners’ appetite for Guyana’s sweet and light crude grades, which are easier to process than the heavier grades from the Middle East.
A Shift in Global Oil Dynamics
Since Guyana began exporting oil in 2020, it has become the fifth-largest Latin American crude exporter, surpassing traditional heavyweights like Brazil, Mexico, Venezuela, and Colombia. However, unlike its Latin American counterparts, Guyana’s oil is characterized by its lighter and sweeter grades, making it an attractive option for European refineries.
Europe: The Ideal Market for Guyana’s Crudes
Guyana’s three crude grades – Liza, Unity Gold, and Payara Gold – have gained rapid acceptance in Europe due to their proximity, quality, and ease of access. In 2024, a staggering 66% of Guyana’s crude exports, or approximately 388,000 bpd, were shipped to Europe, up from 62% the previous year.
Russia’s Invasion of Ukraine: A Turning Point
The Russian invasion of Ukraine in 2022 marked a significant turning point for Guyana’s oil industry. As European refiners sought alternative supplies to sanctioned Russian crude, Guyana’s oil began to gain favor. Last year, attacks in the Red Sea further disrupted oil flows from the Middle East, giving Guyana and Brazil an opportunity to fill the gap.
Expanding Horizons
While Europe remains Guyana’s largest market, producers have also increased shipments to the United States, Asia, Latin America, and the Caribbean. The expansion of output through three floating production facilities, with a fourth expected to add 250,000 bpd of capacity this year, has enabled Guyana to diversify its export markets.
Marketing and Sales
Exxon Mobil, Hess, and CNOOC, the consortium controlling Guyana’s oil and gas output, individually sell their allocated barrels. The Guyanese government, meanwhile, awards a marketing contract annually to allocate its portion of output. For 2025, European trading firms BB Energy and JE Energy secured the contract, marking their second consecutive win.
A Bright Future Ahead
As Guyana’s oil industry continues to grow, the government remains committed to diversifying its export markets. With Exxon-led consortium’s next project, Yellowtail, set to start this year, Guyana is poised to become an even more significant player in the global oil market.
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