Archive · 19 Jun 2025
Guyana Balances Oil Wealth, Environmental Impact, and Growth
Guyana, a country mostly covered in rainforest, found a lot of oil in 2015.
This has made their economy grow very fast.
However, prices for food and other things have gone up too.
The government and a company called Exxon have an agreement about how to share the money from the oil.
Even though they are using oil, Guyana's forests absorb a lot of pollution, meaning they clean the air more than they pollute it.
Guyana is a heavily forested country with significant oil reserves discovered in 2015.
ExxonMobil and partners are developing oil projects, leading to rapid economic growth.
Guyana's GDP has averaged 47% yearly since 2022, but the country faces inflation and high food prices.
The existing agreement between Guyana and Exxon allows for significant cost recovery by the company.
Despite oil production, Guyana is estimated to absorb far more greenhouse gases than it emits.
- Who
- Guyanese government, ExxonMobil and its partners.
- What
- Guyana's economic transformation due to oil discovery and its environmental status.
- When
- Oil discovery in 2015, with significant GDP growth since 2022.
- Where
- Guyana, South America.
- Why
- Guyana's shift toward oil production driven by oil discovery and its effect on economic development and environmental impact.
Concerns over the PSA
Government Stance
Environmental Concerns vs. Contractual Obligations
Concerns over the PSA
Guyana has seemingly compromised its exceptional environmental track record.
Government Stance
The government respects existing contracts.
Revenue Sharing Agreement
Concerns over the PSA
The current agreement between Guyana and Exxon allows extractors to use up to 75% of the monthly revenue to recover their costs.
Government Stance
The split of revenue is fair.
- Land Area (Forest)
- 85%
- Oil Discovery Year
- 2015
- Current Production
- 660,000 barrels/day
- GDP Growth (Average, since 2022)
- 47% yearly
- Emissions (2025 estimate)
- 11,015 kilotons of CO2e
- Carbon Sequestration (2025 estimate)
- 154,060 kilotons