This is interesting: There have been some big oil discoveries in the Caribbean; MasterResource’s Vijay Jayaraj has the news. This will affect global energy prices, but here in the U.S., we may still have some other problems. Excerpt:
The poverty-stricken Caribbean countries of Guyana and Suriname have hit the jackpot with the discovery of huge offshore oil reserves that are on track to produce revenue for decades.
Opposition from the United Nations and other anti-hydrocarbon entities might hamper the pace of production but won’t stop it. The global need for more crude is too great, and the economic situation of the two South American nations is too dire.
Suriname has been experiencing double-digit inflation for a while now (35 percent in 2020). The inflation rate is now above 50 percent due to the ongoing global energy crunch. Suriname’s economy shrank by 3.5% in 2021. Guyana’s economy is in a similar situation, with 40 percent of Guyana’s 800,000 living in poverty.
All this could change now, thanks to the oil discovery.
Equatorial Guyana and Suriname—situated side-by-side and bounded by the equator and Atlantic Ocean — have combined oil reserves estimated to be 17 billion barrels of oil equivalent. Together this represents the world’s largest oil discovery in the last two decades. Some call it the “the most promising oil discovery hotspot on earth.” Others say it is “the most exciting oil frontier on earth.” In addition, there are gas reserves of more than 30 trillion cubic feet.
The biggest hurdle to the extraction of these reserves could come from lack of capital. Both Suriname and Guyana have an “underdeveloped capital market with limited financing options” for new projects. These nations will be under severe financial stress if the international climate-industrial complex takes a strong stand against their extraction plans and their own governments acquiesce.
In summary: The wealthy developed nations of the world wil go RHEEEEE at the very idea of impoverished Third World nations lifting themselves out of poverty by developing their own natural resources, and the USA will likely lead the pack, at least as long as loony “green” activists and the Democrat Party hold any influence at all. And even if Guyana and Suriname tell the wealthy developed nations to get stuffed and proceed with development, those same self-absorbed First World nations may well clamp down on possible sources of capital. In the article, Guyana’s President is making noises about inviting the Saudis to invest.
There’s a lot of money to be made here, and it’s a fair bet that most of the developed world’s capital investors won’t be making any of that money, and that will make if harder for Guyana and Suriname to develop these resources and, by the way, lift many if not all of their citizens out of poverty. Because it’s an inevitable law of nature and economics that growth is dependent on cheap and abundant energy, and these two nations are set to start supplying a lot of that.
Vijay Jayaraj concludes:
This will prove to be a win-win for global supply and the development of local economies. “Suriname’s nascent oil boom is gaining momentum” and will deliver a “significant fiscal and economic windfall,” says Matthew Smith at Oilprice.com,
“Guyana will materialize as a leading global oil exporter with its petroleum output far exceeding domestic demand, while government coffers will swell with annual income expected to be over $10 billion annually in less than a decade,” he says.
The ability of Guyana and Suriname—and their right—to develop economically by utilizing their oil reserves should not be impeded by the climate-frenzied.
We can hope. And we can hope that this will drive down global oil prices, oil being a highly fungible commodity, and we can hope that this will have a positive effect on the USA’s energy picture – and maybe undo a little of the damage the Biden(‘s handlers) Administration has done. I’d prefer to get back to our Trump-era energy independence, but that will take a little more effort, not to mention a few honest elections.