Written By: Ishton W. Morton – January 12th, 2019
Since the 2016 U. S. Presidential Election Ohio former Governor John Kasich who made an unsuccessful bid for the office of the President of the United State has managed to maintained positive images of himself in the news. Kasich has issues relative to the direction the United State is going. These issues have caused many to asked Kasich if he planning for a second for the White House.
Recently on MSNBC Breaking News/Hardball with Chris Matthews as he lamented about the direction(s) and positions on issues facing our country he had this to say. Make no mistake, technology is changing our economy.
He continued to say we will have to prop-up and help stabilized the economy of our neighbors to the south of us if we intend to stop the flow of people coming into our country. Meanwhile Black Gold is found in Guyana!
Actually, he believes that with better economic conditions in our neighboring countries there will not be such a migration moving into the United States. There may be merit to his argument(s).
Subsequently, it is believed that such a process has already started. Black Gold has been discovered in Guyana. On Monday December 3rd, 2018 the United States oil giant ExxonMobil has made its 10th discovery offshore Guyana at the Pluma-1 well. This latest discovery has increased the estimated recoverable resource for the Stabroek Block to more than five billion oil-equivalent barrels.
Historically, Guyana always had an on-going of petroleum exploration. Since the 1940s Guyana’s offshore Basin and the inland Takatu Basin has attracted such companies as Shell, Total and Mobil. They have completed most of geological surveyance in the area and have drilled a number of wells.
Nonetheless, according to Dr Mark Bynoe, Director of the Department of
Energy; “This is enormous news for Guyana. The country is on a quest of transformational development. Additionally, for current and future generations and the news of ExxonMobil’s 10th discovery offshore Guyana is expected to facilitate the country’s realization of substantial social and economic improvements.”
Bynoe continued to say; “Guyana is well poised to truly forge ahead in the 21st century. As a petro-development state we will, however, need to strategically invest in a people-centered and balanced manner, where we utilize our non-renewable resources for structural transformation and improving people’s lives in the short-term, while concomitantly providing the foundation to allow us to transition in the medium- and long-term to a post carbon economy.”
Also, previous recoverable resource estimate on the Stabroek Block was more than four billion barrels.
Seemingly, Bynoe is completely ecstatic as he added; “This discovery reinforces the potential of the country being able to produce more than 750,000 barrels of oil daily by 2025 and to the potential for development in the southeast section of the Stabroek Block. The Stabroek Block is 26,800 square kilometers, or 1034.538 square miles.”
It is believed that petroleum production in Guyana is calculated to be a major boost thusly positivity affecting the entire economy of Guyana.
Subsequently, in 2008, there were four companies undertaking exploration work in Guyana. ExxonMobil, Repsol, Century Guyana Ltd. and CGX. The Petroleum Division of the Guyana Geology and Mines Commission has the responsibility of monitoring exploration in Guyana.
Importantly, many may not know the location of Guyana. Officially, it is the Co-operative Republic of Guyana and is located on the northern mainland of South American Continent.
According to information obtained Guyana gained attention in the world back in May 2015 when ExxonMobil announced the discovery of Black Gold, more than 90 meters (295.276 feet) of high-quality, oil-bearing sandstone reservoirs approaching 200 km (124.274 miles) off its coastline.
Furthermore, Pluma-1, which is located some 17 miles (27 kilometers) south of the Turbot-1 well and follows previous discoveries on the Stabroek Block, encountered approximately 121 feet (37 meters) of high-quality, hydrocarbon-bearing sandstone.
Subsequently, the well was safely drilled to 16, 447 feet (5,013 meters) depth in 3,340 feet (1,018 meters) of water. The Noble Tom Madden drillship began drilling on November 1st, 2018.
However, predicated on the ExxonMobil announcement it easily thought to be a done deal for Guyana.
Apparently, Guyana is engaged in an enormous border disputes with both Suriname, which claims the area east of the left bank of the Corentyne River and the New River in southwestern Suriname, and Venezuela which claims the land west of the Essequibo River, once the Dutch colony of Essequibo as part of Venezuela’s Guayana Essequiba. The maritime component of the territorial dispute with Suriname was arbitrated by the United Nations Convention on Law of the Sea, and a ruling was announced on 21st, September 2007. The ruling concerning the Caribbean Sea north of both nations found both parties violated treaty obligations and declined to order any compensation to either party.
Evidently lamentation(s) regarding border disputes does not seem to have any bearings on Guyana’s intentions to proceed with the project.
Accordingly, The Noble Tom Madden is expected to begin drilling the Tilapia-1 prospect located some 5.5 kilometers (3.4 miles) west of the Longtail-1 well. The Stena Carron drillship has recently completed operations at Hammerhead-1 and will soon drill its next well following scheduled maintenance.
Unmistakably, most of the geology and exploration in Takutu basin has been in the vicinity of Guyana. The Takutu basin is an intracratonic graben approximately 280 km (174 mi) long and 40 km (25 mi) wide in northern Brazil and adjoining Guyana, lying entirely within the center of the early Precambrian Guyana shield.
ExxonMobil and its affiliate Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Limited holds 30% interest and CNOOC Nexen Petroleum Guyana Limited holds 25 per cent interest.
Also, The Liza-1 well was drilled to 5,433 meters (17824.8 feet) in 1,742 meters (1.082429 miles) of water, and was the first well on the Stabroek block, which is 26,800 square kilometers (10347.538 square miles) in size.
It is estimated that the well may start producing by the end of the decade, and could potentially produce approximately 700 million barrels of oil equivalent — that will make it worth approximately $40 billion at today’s international crude price. The discovery can be significant for Guyana, which currently does not produce any oil and could use the economic boost.
The oil and gas exploration activity by Guyana has been a source of tension with neighboring Venezuela.
Meanwhile, on May 2015, Guyana announced the significant discovery, which set off a round of recriminations between Venezuela and its eastern neighbor. Officials in Caracas, which has long had claims on Guyana’s Essequibo region, have alleged that the concession is located in disputed waters.
Also, on May 2015 ExxonMobil announced discovery of significant oil in the Liza-1 well, followed by Payara, Liza deep, Snoek, Turbot, Ranger and Pacora by early 2018.
ExxonMobil and Hess reported that new discoveries contain estimated resources exceeding 4 billion barrels of oil equivalent, potentially producing 750,000 barrels per day by 2025. The value of oil dwarfs the roughly $3 billion gross domestic product of Guyana. As Exxon continues development, the small nation is likely looking at a windfall in royalties. For a country of less than a million people, the find changes everything. Within a decade Guyana could be completely transformed by the find going from unpaved roads and sporadic power to being a developed nation.