Guyana to help drive growth in oil industry this year

Jul 10, 2025 News

…OPEC, oil majors say markets are thirsty for more oil

Kaieteur News – Guyana has been listed as one of four countries that will help drive growth in the oil industry this year, the International Energy Agency (IEA) has said.

Global supplies are set to rise by 1.6 million bpd to an average of 104.6 million bpd in 2025 and an additional 970,000 bpd next year, outstripping the expected increase in demand over that period, according to IEA forecasts. The IEA said most of the supply growth is expected to be driven by non-OPEC+ producers such as the United States, Brazil, Argentina, Guyana and Canada.

A seventh development offshore Guyana in the Stabroek Block is scheduled to be sanctioned this year by ExxonMobil Guyana Limited (EMGL) pending regulatory approval. IEA said this milestone is part of ExxonMobil’s broader plan to sustain production growth in one of the world’s fastest-emerging oil provinces. The agency highlighted that the ExxonMobil-led consortium continues to make new discoveries in the prolific Stabroek Block, with estimated recoverable resources nearing 12 billion barrels of oil equivalent.

The IEA noted that following the anticipated sanctioning of the seventh development phase called Hammerhead in 2025, an eighth project, Longtail, is projected for approval by 2027. IEA forecasts that, with its current pipeline of sanctioned projects, production from the Stabroek Block will double from about 600,000 barrels per day (bpd) in 2024 to 1.2 million bpd by 2029. The agency stated that Guyana’s oil output is a key driver of the Americas’ non-OPEC+ supply growth, which is projected to rise by 3.1 million barrels per day (mb/d) by 2030. It was underscored that production from Guyana, alongside Brazil and Argentina, will continue to offset declining output from mature fields across Latin America.

Meanwhile, Reuters news agency reported on Wednesday that output increases from oil producer group OPEC+ are not leading to higher inventories, showing that markets are thirsty for more oil, ministers and executives from OPEC nations and bosses of Western oil majors have said. OPEC+, which pumps about half of the world’s oil, has been curtailing production for several years to support the market, Reuters reported. But it has reversed course this year to regain market share and as U.S. President Donald Trump demanded the group pump more to help keep a lid on gasoline prices.

OPEC+, comprising the Organisation of the Petroleum Exporting Countries and allies such as Russia, began to unwind cuts of 2.17 million barrels per day in April with a production boost of 138,000 bpd. Hikes of 411,000 bpd followed each month in May, June and July.

On Saturday, the group approved a 548,000-bpd jump for August and will likely approve a large hike for September when it meets again in August, sources told Reuters.

“You can see that even with the increases for several months we haven’t seen a major buildup in inventories, which means the market needed those barrels,” United Arab Emirates’ Energy Minister Suhail al-Mazrouei told reporters.

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International Energy Agency, Oil majors, OPEC, Stabroek Block

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