VP Jagdeo not worried about saturation of oil market

In recent years, many countries have begun exploring for oil in their waters.

As a result of this development, there has been an increase in the amount of oil available for sale. Although this can be troubling for some, Vice President Dr Bharrat Jagdeo has made it clear that he is not worried about a saturation of the oil and gas market.

In response to a question posed during the first day of the Guyana Energy Conference and Supply Chain Exposition on Tuesday, the vice president stated “I am not worried too much about the new environment or the US’s position about the oil and gas industry, and whether it would flood the market with cheap oil.”

The VP doubled down by highlighting that investment in Guyana is made by private companies who carry out effective research before entering any business ventures.

“These investments are made by private companies. Exxon Mobil is a very big and complex operation. They studied the oil markets, they probably know the oil markets more than any government official, and they are willing to expand their production here,” Jagdeo underscored.

Dr Jagdeo further revealed that one of the leading private oil companies in Guyana, ExxonMobil, has submitted documentation for the government to consider approval for a seventh and eighth project.

This, Dr Jagdeo used to point to the fact that oil companies are confident in the demand for oil across the world.

“They see in the future a demand for fossil fuel, and they believe that in Guyana, we have a unique opportunity to supply that market, low break-even in cost, the quality of our oil is great, so I am not worried about it, I think that um for the foreseeable future demand for fossil fuel will remain relatively high because growth in the demand is not going to be for energy, not going to be displaced in a major way by renewable energy,” the VP suggested.

The vice president also highlighted that he believes that the US government will do its part in readjusting the regulatory framework for its companies.

“I am sure that they intend to make the regulatory environment more favourable to the growth of the oil and gas industry in the United States of America, but we believe that you are not going to have a major supply response to that…”, Dr Jadeo said.

The Guyana Energy Conference and Supply Chain Expo is being held under the theme: “Connecting the Dots: Integrating the Future” at the Guyana Marriott, Kingston from February 18-21 2025.