Guyana rushing to pump oil before demand wanes

Guyana is heading into next week's COP26 climate talks in Glasgow with a vow to exploit its hydrocarbon resources "as quickly as possible" while committing to sustainable development.

The South American country says it will not "sit on its hands" while countries such as the US and Saudi Arabia are going ahead with the development of their fossil fuel resources.

"We cannot shut down the industry," vice president Bharrat Jagdeo said. "We would be shooting ourselves in the foot. Oil and gas are vital to our future and Guyana needs the money from oil and gas to help us decarbonize."

Developing countries such as Guyana are not contributors to the current concentration of greenhouse gases, and have only recently started developing fossil fuels, but are being told they should instead focus on sustainable development, Jagdeo said.

"We do not know how swiftly we will get to a decarbonized world, but we have to make use of this period when there is still demand to get as much as possible out of the ground," he said. "That is why we support the rapid pace of the industry.

"Guyana can be an oil producer while advocating for a zero-carbon economy," Jagdeo said.

ExxonMobil started production from the deepwater Stabroek block in December 2019, and is undertaking an aggressive exploration campaign.

Current crude output of 120,000 b/d is projected to reach over 800,000 b/d from four projects by 2026.

In pressing ahead with exploiting its hydrocarbon resources, Guyana has a natural advantage in meeting its commitment to fighting climate change, president Irfaan Ali said.

"Guyana is a net carbon-sink," he said. "More than 80pc of our country - that is the size of England - is covered by forests which generate oxygen and capture and store carbon – critical environmental and biodiversity services are provided with these standing forests."

Guyana has updated its original target – formulated in 2016 - to produce all power from renewable sources by 2025. This is impossible to meet and the government is instead targeting a 70pc cut in emissions by 2027 with the development of natural gas, hydro and solar projects, Jagdeo said.

Guyana's high court has scheduled a June 2022 hearing of a petition from local environmentalists who are seeking to shut down oil production.

By Canute James