Guyana's emergence as one of the world's fastest-growing oil
producers has collided with a harsh operational reality: the
country cannot refine its own crude, leaving it vulnerable to fuel
shortages even as production hits record levels.
Gas stations across Georgetown closed or rationed supplies in
recent weeks as disruptions linked to the Iran war constrained
imports. The shortage exposed a fundamental gap in Guyana's energy
infrastructure despite crude production from ExxonMobil's Stabroek
Block averaging a national record of 918,000 barrels per day (bpd) in February.
The approximately 25.7mn barrels produced across the month were
distributed across four projects: Liza 1 at 129,000 bpd, Liza 2 at
261,000 bpd, Payara at 264,000 bpd and Yellowtail at 264,000 bpd.
Yellowtail, which reached its initial 250,000 bpd target in late
2025, is now running at roughly 263,000 bpd, with ExxonMobil
awaiting government approval to study whether output could be
lifted further to 290,000 bpd.
President Irfaan Ali convened fuel importers on April 13 to
secure additional shipments. 'I've been assured that shipments are
expected as early as tonight, with additional supplies already
being sourced to meet national demand,' Ali said in a press
statement, adding that the government is monitoring supply levels
to maintain stability.
The Guyana Energy Agency reported gasoline import costs surged
38.5% between February 22 and March 17, amid disruptions in global
oil markets linked to the Iran conflict. Tensions in the Middle
East have affected shipments through the Strait of Hormuz, a route
carrying approximately one-fifth of global oil trade, contributing
to supply constraints.
The episode has reignited debate over domestic refining
capacity. Nicholas Deygoo-Boyer, Director of Vreed-en-Hoop
Shorebase Inc., argued for local refining infrastructure.
'We are a large producer of crude oil. Still, we do not control
our fate or our destiny in terms of refined products,' he told
OilNOW. 'Having a refinery definitely gives you far more
control over your fate in terms of, well, not being subject to
shocks.'
The strategic calculus now centres on whether Guyana should
invest in refining capacity or continue relying on imports whilst
building strategic reserves. As production continues climbing and
geopolitical disruptions remain persistent, the country faces a
fundamental question about energy sovereignty: whether pumping
nearly a million barrels daily provides genuine economic security
without the infrastructure to convert that crude into usable
fuel.
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