New oil discovery for Guyana

Source: Exxon

Another oil discovery for Guyana as reported by nationnews.com yesterday.

Excerpt from Exxon’s website:

The gross recoverable resources for the Stabroek block are now estimated to total more than 3.2 billion recoverable oil-equivalent barrels, including Liza, Liza Deep, Payara, Snoek and Turbot

Let’s look at some basic calculations:

At the time of this post, the price of a barrel of oil is $60.98 USD for WTI and $63.99 USD for Brent.

Based on those prices the gross value of Guyana’s oil is:

$195 billion USD using WTI pricing.

$204 billion USD using Brent pricing.

If we compare these numbers to Guyana’s GDP in 2016 ($3.4bn) the gross value of their deposits is between 57 and 60 times their GDP.