ExxonMobil Begins Offshore Drilling in Guyana Amid Venezuela Tensions

Exxon Mobil Corp. has outlined its intention to proceed with the drilling of two exploration wells offshore Guyana within the current year, despite the proximity of these drilling sites to a region that is subject to dispute with Venezuela. The oil conglomerate is poised to conduct drilling operations west of the Liza field, an area already yielding oil, and situated closer to the border shared with Venezuela. Notably, Exxon Mobil asserts that the ongoing territorial dispute does not impede its plans for exploration and drilling activities in the region.

Guyana: the new oil centre of the world

On the northeastern tip of South America, there are three little countries stacked in a row; anomalies of empire whose imperial histories still have resonance today. Guyana, Suriname and French Guiana. One formerly of the British Empire; one formerly of the Dutch Empire; one still an overseas department of France and all speaking the language that their colonial masters left them. Of these, Guyana, formerly British Guyana and the only English-speaking country in South America, has been in the news lately following a referendum in Venezuela where President Maduro invited Venezuelans to decide if a large chunk of Guyana should, in fact, be Venezuelan. Given the vast oil riches off the coast of Guyana, the referendum unsurprisingly passed. Once the sabre-rattling verbal aggression died down, there was agreement that no one wanted to go to war and that the foreign ministers of each country would negotiate a solution over the next three months.

Brazil’s Invitation to Join OPEC+ Highlights the Importance of Its Oil Boom

Brazil’s decision to join OPEC+ could have a seismic effect on the global oil production landscape, although it remains to be seen if the country will alter its production.
Brazil’s oil boom poses a significant threat to the ability of OPEC+ to control oil prices, and recent investments from Petrobras suggest the boom won’t end any time soon.
As well as Brazil, OPEC+ continued to face challenges from rising U.S. oil output and threats of increased production from non-consortium member Guyana.