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Guyana’s oil may worth US$160B by 2020- Surveys

May 23, 2017 News

By Abena Rockcliffe-Campbell
If Guyana were to begin oil production now, the oil found so far would be worth anywhere between US$100B and US$108B. That calculation is based on the recent range of oil prices which bounce between US$50 and US$54 per barrel with consideration of the fact that ExxonMobil estimated Guyana’s oil found so far to be about two billion barrels.
However, with the figures being projected by experts, it seems as if the productions in the year 2020 augers well for Guyana.
According to a new survey done by Wood Mackenzie, oil will bounce to within the US$60-80 per barrel range by 2020. Wood Mackenzie is a global energy, chemicals, renewable, metals and mining, research and consultancy group with an international reputation for supplying comprehensive data, written analysis and consultancy advice. It is based in the United Kingdom.
The survey being quoted analyzed the responses of 170 industry professionals.
Further to that survey, in its latest World Energy Outlook, the International Energy Agency (IEA) central scenario for oil prices forecast that the oil market would rebalance at $80 a barrel in 2020, “with further increases in price thereafter.”
The IEA is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD.
ExxonMobil has found an estimated two billion barrels of high quality crude in Guyana.
At the projected price of $80 per barrel, this would give the crude discovered so far a value of US$160B.
IEA concluded that if oil investment remains stagnant over the next few years, by 2020 the world will see a significant increase in the price of oil as global demand continues to climb.
Oil prices are set for a slow recovery, according to the latest report which cautioned against the deep investment cutbacks in the industry.
The IEA forecasts that demand would pick up slowly to 2020, adding an average of 900,000 barrels a day per year, gradually rising to a demand for 103.5 million barrels per day by in 2040. That compares with 94.5 million barrels per day in 2015.
If oil prices were to stay in a rut for longer, a scenario which the IEA said could not be ruled out, the oil price in this scenario in this case would remain close to $50/bbl until the end of 2020 before rising gradually back to $85/bbl in 2040.

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