Generic Hero BannerGeneric Hero Banner
Latest market news

Guyana beefs up military presence on Venezuela border

  • Market: Crude oil
  • 15/01/21

Guyana has deployed more army troops along its disputed border with Venezuela amid a flare-up in tensions.

Venezuelan president Nicolas Maduro last week vowed to"reconquer" the resource-rich Essequibo province where ExxonMobil is developing a giant offshore oil field. The Essequibo covers the western two-thirds of Guyana.

The enhanced Guyanese deployment follows a government agreement with the US to improve its military capacity, as the two countries' coast guards conducted joint exercises.

The UN's International Court of Justice (ICJ) today is determining a schedule for arbitrating Guyana's request for validation of its border with Venezuela that has been in dispute for 120 years. Caracas maintains the ICJ has no jurisdiction in the matter and says the Essequibo province is its territory.

The ICJ could rule on the matter "in two to three and a half years," Guyana's agent to the court Carl Greenidge said.

"We have changed our postures on the border," the head of Guyana's army Godfrey Bess said 13 January. "We are more alert and ready to constitutionally continue to preserve Guyana's patrimony."

Bess had said in November 2020 that foreign forces will never again be allowed to "target" the country's oil exploration and production operations.

Venezuela's navy in 2013 briefly seized a research vessel working in the Roraima block under contract from US independent Anadarko. And in December 2018, ExxonMobil suspended seismic surveys on a part of its acreage license after a research vessel it contracted was approached by a Venezuelan navy ship.

Canada, the Organization of American States (OAS), regional trade group Caricom and Guyana's opposition have joined the US in rejecting Maduro's intention to seize the Essequibo province.

The border dispute involves a part of the deepwater Stabroek block on which ExxonMobil has made several discoveries since 2015, estimating recoverable resources of 9bn bl oil equivalent boe), and from which it is producing 120,000 b/d of light crude.

The US major forecasts 750,000 b/d of oil production from Guyana in 2026.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
20/02/25

US cites 'energy emergency' to expedite water permits

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Guyanese refinery not off the table: Minister


20/02/25
News
20/02/25

Guyanese refinery not off the table: Minister

Georgetown, 20 February (Argus) — Guyana's tentative plans to start a venture with a US midstream company to refine its oil overseas and bring it back into the country for storage and distribution does not necessarily mean a domestic refinery is no longer an option. "I would not put it off the table," natural resources minister Vickram Bharrat told Argus today on the sidelines of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana. "But what we were told by many companies is that a 30,000 b/d refinery might not be economical, that we may have to do 50,000 b/d or 100,000 b/d." Such a refinery would require a guarantee for sufficient feedstock before a company would agree to build it, he said. The government may be in a better position to pursue both options when the ExxonMobil-led consortium behind the giant offshore Stabroek block development has six floating production storage and offloading (FPSO) units up and running in the next few years, he said. Chevron-Exxon dispute not a concern Guyana is not taking sides in the dispute between ExxonMobil and Chevron over the future of Hess' 30pc stake in Staebroek, Bharrat said, as it has "no particular preference" as to how it plays out. Chevron's pending $53bn takeover of Hess was largely driven by its stake in Staebroek, but ExxonMobil argues it has a right of first refusal for Hess' share. An international arbitration case will resolve the issue in May. "Our position was clear from the start," Bharrat said. "If that was not going to affect the operations in Guyana — and we were told it will not — then we are fine." Guyana has a "good relationship" with Hess, which has agreed to buy carbon credits from the government, he said. "We have no issue with Chevron coming in either," he said. "Chevron would add value to the Guyana basin." With general elections coming up in Guyana later this year, there are signs the opposition party may seek to renegotiate oil contracts. But Bharrat said the current administration is not renegotiating the Stabroek production sharing agreement it signed previously. Bharrat repeated his enthusiasm for the country's natural gas potential, including a plan for a gas processing facility which could help the company diversify the economy away from its oil wealth. "That project will cater for a small amount of fertilizer production, especially for local consumption, because we import a lot of fertilizer and we're expanding our agricultural sector," he said. Guyana's relatively new entry into global oil markets means the threat of the "oil curse" — in which oil-rich countries tend to have less economic and social stability — still looms large. But Bharrat said that so far "... we've been doing a good job." Other up-and-coming oil producers such as Namibia and neighboring Suriname have visited Guyana to learn how the government has developed its oil sector in such a short period of time, he said. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

2025 will be ‘pivotal’ for ExxonMobil in Guyana


19/02/25
News
19/02/25

2025 will be ‘pivotal’ for ExxonMobil in Guyana

Houston, 19 February (Argus) — ExxonMobil said 2025 is shaping up to be "very pivotal" for the company's operations at the giant Stabroek offshore block in Guyana as the pace of projects speeds up. The US oil and gas producer has just submitted the draft environmental impact assessment for the Hammerhead project to Guyana's Environmental Protection Agency, ExxonMobil's Guyana president Alistair Routledge said today at the Guyana Energy Conference and Supply Chain Expo in Georgetown. "We target reaching final investment decision for that project in the middle of the year, subject, of course, to us completing the full environmental permitting process and the production license process," he said. Hammerhead is forecast to deliver up to 190,000 b/d when it is brought up to full capacity by the end of 2029. Next year, ExxonMobil plans to reach a final investment decision on Longtail, which will be the first to target non-associated gas in the southeast area of Stabroek. "We'll develop a significant resource base of gas, but also condensates, liquids," Routledge said. Gas output is pegged at up to 1.2 bcf/d when it starts at the end of the decade. Routledge acknowledged the government's impatience to move faster on gas development plans. "We want to move quickly," he told the conference. "But for those in the industry, you will understand the additional complexity and challenges that gas brings." This includes higher transport and storage costs than oil and lower energy density. That means it takes more effort to advance gas projects, especially in a country like Guyana that does not have an existing market. A $1bn pipeline that will ship gas from Stabroek to a planned power plant and natural gas liquids complex — the centerpiece of Guyana's promised gas-to-energy project — is already complete. "We're ready to deliver gas onshore to that very first domestic gas project that will deliver real benefits to Guyana," Routledge said. The Guyanase government has plans in motion to build a second power plant, and then a fertilizer plant, which will support the country's agricultural sector as part of a diversification drive. Routledge outlined other possible strategies to further develop the country's gas resources, including data centers like those spreading elsewhere to power artificial intelligence services. "We've had conversations with some potential investors," Routledge said. "That's on our radar." There is also the option of connecting Guyana's gas resources to world markets. "While it may be cost prohibitive to lay a pipeline all the way to Trinidad, there is still the possibility of using liquefied natural gas technology to connect us to global markets," Routledge said. "That is a further option that is on the table and being investigated." By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

CO2 capture would extend US energy independence: Oxy


19/02/25
News
19/02/25

CO2 capture would extend US energy independence: Oxy

Calgary, 19 February (Argus) — Direct air capture of carbon dioxide (CO2) would extend the US' energy independence by more than 10 years, Occidental Petroleum's chief executive Vicki Hollub said today, but tax subsidies now at risk from the White House are still needed. The US could tap into another 50bn-70bn bls of oil by using enhanced oil recovery techniques with CO2 pulled in by direct air capture facilities, like the projects Occidental is developing, Hollub said on a call with analysts on Wednesday. Direct air capture technology removes CO2 from the atmosphere. Naturally occurring CO2 from underground formations is already used in enhanced oil recovery projects in the US, but it has limits, Hollub said. "There's not enough organic CO2 in the country to be able to flood all the [reservoirs] we're going to need to flood," Hollub said. Such projects are counting on 45Q tax credits offered through the Inflation Reduction Act (IRA) passed during the administration of former president Joe Biden. But President Donald Trump suspended IRA funds soon after taking office, criticizing it as "the Green New Scam". "We know that we have the capability to get the costs down on these direct air capture facilities," said Hollub. "But to get to where we need to be, we really need to have 45Q." Occidental's low carbon strategy has not yet changed since Trump took office. "President Trump knows the business case for this," said Hollub. "I've had several conversations with him." Occidental produced 1.46mn b/d of oil equivalent (boe/d) of oil and natural gas in the fourth quarter, the company reported on 18 February, up from 1.23mn boe/d in the fourth quarter 2023, largely due to its massive $12bn acquisition of CrownRock in August last year. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump asserts power over independent agencies


19/02/25
News
19/02/25

Trump asserts power over independent agencies

Washington, 19 February (Argus) — President Donald Trump has signed an executive order that claims to give him sweeping control over the budgets, policies and regulations of independent US agencies that oversee the energy sector, financial markets, trade and transportation. The order seeks to give the White House unprecedented control over the US Federal Energy Regulatory Commission (FERC), the US Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) and more than a dozen other independent agencies. Trump's order asserts that "so-called independent agencies" lack sufficient accountability and should be brought under his direct control. "For the federal government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people's elected president," according to the executive order, which was signed on Tuesday. FERC, the CFTC and the SEC did not respond to a request for comment. Trump's order would all but end years of attempts by the US Congress to shield agencies that oversee energy markets, trading, finance, maritime trade, railroads, and other businesses from excessive political influence. Congress made those agencies independent — often with a bipartisan board serving years-long terms — to ensure a degree of independence when agencies resolve business disputes, set market rules and issue new regulations. In Trump's first term, FERC's commissioners and Republican chairman rejected the administration's plan to push through market rules to bail out coal and nuclear power plants, based partly on the concerns that doing so would destabilize power markets and cost consumers billions of dollars. It remains unclear if the agency in the future could assert that degree of independence under the order. Trump's order would give the White House the ability to control independent agency budgets and require the appointment of a White House "liaison" in each agency. The order would require agency chairs to align their policies with the White House, subject all significant regulations to review by the administration, and would establish "performance standards" for agency leaders. The order provides an exception for the US Federal Reserve for monetary policy, but the agency's budget and its regulatory actions would come under White House control. Other agencies also covered by the executive order include the US Surface Transportation Board, the US Federal Trade Commission, the US Chemical Safety Board, the US Export-Import Bank, the US Federal Maritime Commission and the US National Transportation Safety Board. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more