Report: Guyana’s oil production costs are second lowest globally

The cost of producing a barrel of oil in Guyana is among the lowest globally, according to a June 2024 report by the International Energy Forum (IEF) and S&P Commodity Insights.

The report, titled “Upstream Oil and Gas Investment Outlook,” highlights the evolving landscape of global oil production costs, with a special focus on Guyana’s role as an economical producer. It notes that worldwide oil production costs have risen, with most new oil supplies now extractable at an average cost of US$60 per barrel Brent or less – a US$10 increase from 2021 assessments.

Regions with particularly competitive production costs include Guyana, the Middle East, and West Africa. The report indicates that the Middle East has the lowest average breakeven price at about US$30 per barrel Brent, with Guyana close behind at US$36 per barrel Brent. By comparison, new wells in the United States require approximately US$57 per barrel Brent. “The highest end of the cost curve includes heavy crudes in Canada and Venezuela,” the report states.

“The overall global supply stack is relatively flat, with the majority of supply expected to break even between US$50/bbl and US$60/bbl. Both conventional and tight oil projects, including some at the higher end of the cost curve, will be needed to meet demand and offset base declines in the next 10-15 years,” the report explains.