Impact of Oil and Gas on Guyana's Economy

Running Head: ACCOUNTING FINANCIAL ANALYSIS REPORT
ACCOUNTING FINANCIAL ANALYSIS REPORT
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1ACCOUNTING FINANCIAL ANALYSIS REPORT
Table of Contents
Introduction................................................................................................................................2
Literature Review.......................................................................................................................2
Oil and Gas Industry of Guyana.............................................................................................2
Oil and Gas Impacts Guyana Economy.................................................................................4
Concerns of Oil and Gas of Guyana......................................................................................8
Curse or Blessing...................................................................................................................9
Research Objective...................................................................................................................10
Research Design.......................................................................................................................10
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

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Introduction
Guyana is the country situated on northern main land of the South America. Guyana
has gained immenseattention around the world after the announcement of the discovery of
more than the ninety meters of the higher quality, reservoirs of the oil-bearingsandstone that
is about200 km off to its coastline. The activity of the exploration of the oil and gas by the
Guyana has been the sources of the tension by the neighboring countries. The offshore of the
country has able for attracting various companies since 1940s, who have completed much of
the geographical surveyance of area as well as drilling of the number of the wells. The
ExxonMobil, which is the American multinational oil and the gas corporation, has found out
oil,from the coast of Guyana, around the year 2015. It has been believed that reserves were
big. They has believed that after flowing of the oil in the year 2020, the country Guyana
would be reaping almost billions immediately and as per them around 750,000 barrels of the
oil per day would be produced from the year 2025. This discovery of highest quality of the
reservoirs of the oil-bearing sandstone could be used by the country as the base for boosting
the economy of the country (Nowak 2018). Hence, under this research paper, discussion
would be done on the impact of the oil and gas on the economy of Guyana.
Literature Review
Oil and Gas Industry of Guyana
The oil and gas industry of Guyana is still considered to be in its infancy stage. The
subsidiary of ExxonMobil, Esso exploration and production has started exploration of the
offshore territory of the country. In the year 2015, this company becomes first company, who
has discovered significant reserves of hydrocarbons with the help of Liza-1 and in Stabroek
blocks. The country has now estimated recoverable of the resources of approx. billions boe at
the Stabroek. The domestic sector of offshore has gained immense attention from that of the

3ACCOUNTING FINANCIAL ANALYSIS REPORT
international players, since the first discovery of the hydrocarbons. Apart from Stabroek,
Guyana, have additional seven blocks in the phases of the exploration as well as development
that includes; Kaieteur and Canje, which are also operated by the Esso; Corentyne and
Demerara by the CGX Energy as well as Roraima by Anadarko, Kanuku by the Repsol and
Orinduik by the Tullow oil (Nathan 2017).
The standard setting bodies of the country is planning for allowing the authorities for
clearly defining the policy as well as implementing the mechanism that needed for properly
governing the industry as well ensuring the growth sustainability. The international
institutions such as IM and World Bank have taken step for providing greater support for
establishing the strong frameworks of regulatory (Namazi and Mohammadi 2018). Moreover,
in 2018, department of energy was established by the ministry of presidency of Guyana by
transferring of portfolio of hydrocarbons from ministry of the natural resources.The
developments are covered in the Oil & gas Year Guyana 2019. The business intelligence
platform of Guyana, TOGYIN has the features that provide the profile of the companies as
well as institutions who are active in the oil and gas industry of the country as well as
providing the access to all of the coveragesand the content, which includes the interviews of
the key players and leaders of the industry (Nafey 2014).
After drilling of the eight gushing discovery of the wells offshore, the potential of the
company has been increased for generating the amount of approx. $20 billion in the revenue
of oil by end of next decade, which is roughly equivalent to much larger Colombia revenues.
If every planning goes well then the poorest countries in the South America will be becoming
wealthiest. However, there exist certain obstacles. The countries, which discovers oil they
often wastes the opportunities they have because the resources generally blends seamlessly
with the corruptions (Mohan, Strobl and Watson 2016). Moreover, the country, which is
having weak political institutions such as Guyana are quite vulnerable. There exist enormous