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Exxon Almost Walked Away
From Its $1 Trillion Oil
Discovery |
|
An excellent account of the
risks vs rewards involved in
exploration for oil.
This
Bloomberg, August 2024
article describes how
Houston Geoscientists flew
to Georgetown to acquire old
well logs and discuss the
potential for drilling
rights with the Guyana
Geology and Mines
Commission. The probability
of success was extremely
small. |
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How Saudi Aramco plans to
win the oil endgame |
|
This
June 2, 2024 Economist
article outlines Saudi
Aramco's goals to make their
energy source as affordable
and sustainable as possible.
Achieving that goal involves
a three-pronged strategy: 1)
Extract oil in ever cleaner
ways; 2) Broaden its
hydrocarbon portfolio to
reduce its exposure to oil
and 3) decarbonisation by
investing heavily in Green
Technologies. |
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Exxon & Co. discovering more
oil in Guyana in 2024 |
|
The
2024 Oil discoveries
places Guyana ahead of
Venezuela based on the
amount of oil currently
discovered. Guyana has been
complaining about the small
% of royalties they had
agreed to before the Lisa
field was discovered (when
oil prices were closer to
$35/barrel). Given the
dramatic expansion in the
total amount of oil and
current Oil prices
($75/barrel) one has to ask
if it is better to have 10%
of the Lisa fields or 2% of
the grand total? |
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History of deepwater Oil
Exploration with focus on
Guyana and Suriname |
|
This historical analysis (World
Oil, May 2021) provides
one of the best historical
accounts of the
technological challenges and
risks involved in Oil
Exploration and Extraction.
Other Economic challenges
such as oil price
fluctuations and the growing
anti-fossil fuel sentiment
add to the technological
challenges. |
|
Jobs, Rib-Eyes and Worries:
How Exxon's Giant Oil
Discovery Is Transforming
Guyana |
|
This
Wall Street Journal article
of Nov 1, 2023, provides
an up to date view of the
impact on Guyana following
the discovery and extraction
of Guyana's oil and gas. |
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Guyana's emergence as an Oil
Giant |
|
Immediately after outlining
Latin America's
oil-producing prospects for
the coming decade, this
July 12, 2023 Economist
article focused on
Guyana's oil windfall. With
it's tiny population and
vast resources, along with
its late emergence as a
petrostate,
Guyana has a reasonable
chance of avoiding the
resource curse. Notable
recommendations for success:
achieving a bipartisan
consensus over its
fiscal strategy and
accepting more
international oversight of
its Sovereign Wealth Fund,
in order to achieve true
transparency. |
|
The future of Oil Production
in Latin America |
|
This
Economist, July 11th 2023
article makes the case
that Latin America is set to
become a major oil producer
this decade, but only Brazil
and Guyana are set for a
bonanza, in part because of
the quality of the oil and
on the estimate that they
can produce oil profitably
at $35 per barrel, less than
half the price of a barrel
today. |
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Drilling for Oil & Gas is
going deeper and more
dangerous |
When we read the details
highlighting the dangers of
deep water exploration for
oil and gas, one has to
wonder why humanity is so
afraid of Nuclear energy.
This
April 20, 2020 analysis,
published on the 10th
anniversary of the disaster
relating to the Deepwater
Horizon drilling rig in the
Gulf of Mexico, shows how
technology allows one to
make enormous advances while
taking on extraordinary
risks.
Even with mindboggling
insurance coverage, the
inherent risks cannot be
reduced. |
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Exxon Mobil's Plan to bring
Gas to Shore - video |
|
With the discovery of a
large number of oil wells,
Exxon Mobil has devised a
plan for bringing the gas on
shore and using it to drive
a gas-fired power plant,
among other advanced
energy-driven facilities.
This
video describes the
proposed plan, |
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Exxon Mobil’s Oil
Extraction plans in Guyana –
video |
|
An interesting video illustrating
how Exxon Mobil plans to
extract the oil from the
Liza fields, process and
ship the product to the
market. Not shown is the
processing of the gas most
of which will be compressed
and pumped back into the
wells to increase the
extraction of oil. |
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ExxonMobil 'Puts
Guyana on the Map' with
Discovery |
|
Exxon Mobil Corp. on
Thursday, October 5, reported its
fifth new oil discovery
after drilling the Turbot-1
well offshore Guyana with
the Stena Carron drillship. Wood
Mackenzie expects
Guyana to be one of
Latin America’s
top oil producers by 2026
with approximately 350,000
to 400,000 barrels per day
of oil production. Here's
what Investors are
saying and what Hess is
doing.... |
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500 million barrels
of oil found in the Payara
reservoir offshore Guyana |
|
On July 25, 2017, Exxon
Mobil announced it
has discovered additional
oil in the Payara reservoir
offshore Guyana, increasing
the total Payara discovery
to approximately 500 million
oil-equivalent barrels. |
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Guyana - the Next
Oil Hot Spot ?? |
|
With the recent
oil find,
Guyana’s oil production is estimated
to peak at around 450,000
bpd in the next decade. This
is attracting a lot of
players... |
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Guyana buzz grows as
ExxonMobil notches third
find |
|
This April
3, 2017 article describes
the excitement generated
during the conference
arranged by the Guyana
Oil and Gas Association
(GOGA). |
|
ExxonMobil discovers
oil in Snoek well offshore
Guyana |
|
On March 31 2017, the
ExxonMobil Corporation
announced positive results
on its sixth well – Snoek –
located offshore Guyana.
This almost doubles the
estimated total which
becomes 2.5 billion barrels. |
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Liza Phase One Development |
|
The latest
details (March
2, 2017) regarding the Liza
Phase I Development. We now
know that Liza is estimated
at one billion barrels,
producing 100 thousand
barrels of oil per day. |
|
ExxonMobil oil find may be
12 times Guyana GDP |
|
An Exxon Mobil Corp.
discovery (Lisa
1, reported in May 2015) off the coast
of Guyana is the most
exciting thing happening in
terms of Latin America oil
exploration. It may
hold oil and natural gas
worth 12 times the South
American nation’s entire
economic (GDP) output. |
