Guyana, a small South American country with a population of more than 800,000 people, made headlines in December.
reason? Neighboring country Venezuela.
Venezuelan dictator Nicolas Maduro has called for a referendum to be held in the first week of December 2023 to approve the annexation of Essequibo, which covers two-thirds of Guyana. Venezuelans recognized this even though the conflict had already been settled by an international tribunal in 1899.
“What happened was that the discovery of oil (in Guyana) made things even worse,” said Dr. Terence Blackman, founder and CEO of the Guyana Business Journal. he said. “This discovery makes it seem more attractive for Venezuela to pursue this course of action.”
With the discovery of oil in 2015, Guyana became the world’s fastest growing economy, posting the world’s highest real GDP growth rates in 2022 and 2023. Crossing the Guyana border is a different story. Venezuela boasts the world’s largest oil reserves, but its economy has collapsed ever since President Maduro took power in 2013.
“Venezuela has no real sources of support for its ambition to seize territory in Guyana, but Guyana appears to have public international law and its alliance with the United States on its side,” said Valérie Marcel. Ta. New Producers Group Director. “So I think at this stage Guyana is much less fearful than it has been in the past. We feel more confident with our larger neighbour.”
Guyana’s sudden economic development is also on the watch list of oil experts. Guyana’s impressive GDP growth looks impressive on paper, but critics say the country’s weak democratic system and deeply divided politics along ethnic lines have left South America’s only English-speaking country with so-called resources. He emphasizes that it may cause you to suffer from the curse.
“Guyana is at a historical crossroads,” said Gregory Belew, an energy analyst at Eurasia Group. “We are on track to become one of the most exciting and important oil producing countries in the world.”
Watch the video above for a deep dive into Guyana’s oil economy, the ongoing escalation with Venezuela, what this country’s oil means for the United States, and more.
