Latest update October 12th, 2026 10:26 AM
Mar 15, 2026 News
When oil is produced offshore, natural gas often comes up with it. Much of this gas is compressed and injected back underground to maintain reservoir pressure.
But over time, each production cycle tends to bring up more gas relative to oil.
If there is no pipeline to take the gas away, the system must compress and re-inject larger and larger volumes, increasing operating costs and sometimes limiting how fast oil can be produced.
In many oil reservoirs, natural gas sits on top of the oil underground. This is called a gas cap.
That gas helps maintain pressure in the reservoir, pushing oil toward the wells so it can be produced.
If gas is removed too quickly, the pressure underground can fall, which may reduce how much oil can ultimately be recovered.
Gas decisions are therefore not just commercial decisions. They are also reservoir management decisions that can affect the total value of the resource.
Many people ask: If the gas is there, why not sell it right away?
The answer is two-fold.
First, there may not be a way to get it to a user (no pipeline, for instance) or there may not be a user to take it (no power plant, for instance)
Second, underground reservoirs behave according to physics, not politics.
In some reservoirs, producing gas too early can cause liquids such as condensate to become trapped underground, reducing the total amount that can be recovered.
For this reason, engineers sometimes delay gas production while managing pressure carefully to maximise overall recovery.
What may appear to be delay from the outside may actually be careful reservoir management.
Large energy companies do not make decisions about one country in isolation.
A company operating in Guyana may also be developing projects in other parts of the world at the same time, and each project competes internally for investment.
This means the timing of developments can depend on factors such as:
Understanding this helps explain why development timelines do not always move as quickly as governments or citizens might expect.
Gas development is not just about pipelines or power plants.
Every decision — how fast to produce gas, when to export it, or how much infrastructure to build — can affect:
Some consequences may only become visible many years later.
Governments, not multinational companies, should manage their country’s portfolio and so must be prepared, to ensure the best outcome for their citizens. That is why sound policy must be based on a clear understanding of the technical behaviour of oil and gas reservoirs.
Subscribe to get the latest posts sent to your email.
Oct 12, 2026
(Kaieteur News) – President’s College produced the biggest victory of the day with a commanding 10-0 win over Hope Secondary in the girls’ division as the ExxonMobil Under-18 Schools Football...Oct 12, 2026
(Kaieteur News) – Thirty-three years ago, the death of Monica Reece sent shockwaves throughout Guyana. Today, we can look back and say that Monica’s death marked a turning point for violent crime in the country. Guyanese were so shocked by her death and the dumping of her body in the middle...Oct 11, 2026
By Sir Ronald Sanders (Kaieteur News) – Who speaks for Haiti? It is a question the international community can no longer avoid. For years, governments and international organisations have insisted that the country’s deepening crisis must have a “Haitian-led solution”. The principle is...Oct 12, 2026
(Kaieteur News) – Exxon’s Guyana head, Mr. Alistair Routledge, created a firestorm in Guyana with an unyielding expression of his company’s position. Though he said much, he was careful to steer clear of certain circumstances, disciplined to silence. What Mr. Routledge didn’t say, I...Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: glennlall2000@gmail.com / kaieteurnews@yahoo.com