Key facts
- Guyana's oil production has reached over 1 million barrels daily.
- Exxon plans to boost production to 1.7 million barrels daily by 2030.
- Exxon needs 2 billion cubic feet of natural gas daily for oil extraction.
- Guyana's LNG export project capacity may be halved to 3 million tons annually.
- Fulcrum LNG, selected to develop the project, was established by a former Exxon executive.
Guyana, a recent entrant to the oil celebrity club with billions of barrels discovered by Exxon Mobil, is now contemplating a shift in its natural gas strategy. While initially planning to add liquefied natural gas (LNG) to its export portfolio, the government is now considering prioritizing domestic consumption for its gas reserves. This reconsideration comes as Exxon Mobil and its partners in the Stabroek Block require substantial natural gas for their oil production operations. Exxon aims to increase daily production capacity to 1.7 million barrels by 2030, a target that necessitates significant gas injection into wells. The government had previously selected Fulcrum LNG, a company founded by a former Exxon executive, to develop an LNG export project, but progress has been slow, partly due to concerns about gas availability. Exxon has reportedly informed the government of its substantial daily gas needs for oil extraction, leading to discussions about either reserving the gas for domestic use or scaling down the planned LNG facility's capacity.