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A tiny rainforest country is growing into a petrostate. A US oil company could reap the biggest rewards
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Guyana’s destiny changed in 2015. US fossil fuel giant Exxon discovered nearly 11 billion barrels of oil in the deep water off the coast of this tiny, rainforested country.

It was one of the most spectacular oil discoveries of recent decades. By 2019, Exxon and its partners, US oil company Hess and China-headquartered CNOOC, had started producing the fossil fuel.? They now pump around 650,000 barrels of oil a day, with plans to more than double this to 1.3 million by 2027.

Guyana now has the world’s highest expected oil production growth through 2035.

This country — sandwiched between Brazil, Venezuela and Suriname — has been hailed as a climate champion for the lush, well-preserved forests that carpet nearly 90% of its land. It is on the path to becoming a petrostate at the same time as the impacts of the fossil fuel-driven climate crisis escalate.

While the government says environmental protection and an oil industry can go hand-in-hand, and low-income countries must be allowed to exploit their own resources, critics say it’s a dangerous path in a warming world, and the benefits may ultimately skew toward Exxon — not Guyana.
Since Exxon’s transformative discovery, Guyana’s government has tightly embraced oil as a route to prosperity. In December 2019, then-President David Granger said in a speech, “petroleum resources will be utilized to provide the good life for all … Every Guyanese will benefit.�

It’s a narrative that has continued under current President Mohamed Irfaan Ali, who says new oil wealth will allow Guyana to develop better infrastructure, healthcare and climate adaptation.

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