How Guyana's Oil Boom Sparked A Border Dispute With Venezuela
Vložit
- čas přidán 3. 06. 2024
- Guyana, a tiny South American nation home to more than 800,000 people, made big headlines in December. The reason? Its neighboring country, Venezuela.
Venezuela's autocratic leader Nicolás Maduro called for a referendum in the first week of December 2023 to seek approval to annex Essequibo, which makes up two-thirds of Guyana's land. Venezuelans approved it despite the dispute already being resolved by an international tribunal in 1899.
"What has happened is that it's been exacerbated by the discovery of oil (in Guyana)," said Dr. Terrence Blackman, founder and CEO at Guyana Business Journal. "This discovery has made it seem more attractive to Venezuela to pursue this course of action."
The 2015 oil discovery made Guyana the world's fastest-growing economy, recording the world's highest real GDP growth rate in 2022 and 2023. The story is different across Guyana's border. Venezuela has the world's largest oil reserves, but that hasn't stopped its economy from collapsing since Maduro took power in 2013.
"Venezuela doesn't truly have sources of support in its ambitions to take over that territory of Guyana, whereas Guyana, it seems, has international public law on its side, as well as the alliance with the United States," said Valerie Marcel, director at New Producers Group. "So I think that at this stage, the fears that Guyana felt in the past are much less. It feels more confident against its big neighbor."
Guyana's sudden economic progress has also been on the watch list for oil experts. While Guyana's remarkable GDP growth appears impressive on paper, critics highlight that the country's weak democratic institutions and deeply divided politics along ethnic lines could cause the only English-speaking country in South America to suffer from the so-called resource curse.
"Guyana is at a crossroads in its history," said Gregory Brew, energy analyst at Eurasia Group. "It is about to become one of the most exciting and important oil-producing countries in the world."
Watch the video above to dive deep into Guyana's oil economy, its ongoing escalation with Venezuela, what the country's oil means for the U.S. and more.
Chapters:
0:00 Introduction
1:58 Chapter 1 - Guyana's oil boom
4:00 Chapter 2 -The Challenge from Venezuela
8:10 Chapter 3 - ExxonMobil and Guyana
10: 58: Chapter 4 - The resource curse
13: 14: Chapter 5 - What's next?
Produced and edited by: Anuz Thapa
Shot by: Guy Hernandez, Oscar Molina, Junghun Park, Alex Arjoon, Alex Herrera & Marco Mastrorilli
Narration by: Jordan Smith
Animation: Jason Reginato
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images, Reuters
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to land your dream job in 2024? Take CNBC’s new online course How to Ace Your Job Interview and save 50% with discount code EARLYBIRD: cnb.cx/3TSmIfX
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC News on X: cnb.cx/FollowCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
#CNBC
How Guyana's Oil Boom Sparked A Border Dispute With Venezuela
I hope Guyana succeeds and the political structure don't give in to greed and self interest
No
@@ivand0007 Yes
Not if the CIA has a say
I just hope Guyana doesn't become the next Venezuela...
Venezuela and Guyana have a common neighbour : Brazil! Brazil sent a clear message to Maduro : back-off !
The Venezuelan army composed mainly of Cuban and Russian mercenaries is by far no match to the Brazilian army!
We support Guyana from Trinidad and tobago
Best wishes for Guyana from Jamaica. Hopefully the ethnic tensions between Blacks and Indians have dissipated.
i dont expect to dissipate because money will be on the table for the taking, i expect accrimony. this is usually how things end up in most countries.
It will as India and Africa will influence the iutcme of hostility between Venezuela ad Guyana. Inda is thirsty for oil
Let’s hope they are united against a common enemy but it seems like the blacks can’t get along with anyone wherever they go!
That's the mess england left behind. So you think its improved?
AaA@@providenceartdesign
I think history will show once again that whether it's a foreign investor or a national owned company the average citizen will lose out on all these "promised benefits".
Norway begs to differ.
Guyanese are stilling living like church rats--
How can someone just want to take o anotther countery just like that maduro is mad he needs ,to go to jail
Got a lot of friends from Guyana, I hope the country can benefit from this 🙏🏽
I'm always for the little guy around the world...I'd like to see the standard of living elevated for the poor. Everyone can win, if the rich were less greedy...if we can get the people at the bottom being middle-class like in the US, that's best for all. Also great quality docs CNBC....I enjoy in-depth vids.
🙌🏼 Happy to see CNBC cover this story as a proud Guyanese-Canadian 🇬🇾🇨🇦
Let's face it, the oil is better off in the hands of the Guyanese rather than the Venezuelans. Hugo Chavez and Nicolas Maduro ran their country into the ground. Let Guyana keep the land and oil, from the looks of it, the government is using the oil to improve the lives of its people. I do hope they'll become the Norway of South America and continue to prosper.
Venezuelan doing good, what destroyed them was US sanction and embargo.
Russia is a big country they can handle the sanction but not Venezuela.
Unlikely, corruption and South American politics go hand in hand
@@multatuli1it wasn't really the sanctions it was the fracking revolution in the US where oil production tripled sending the price of oil tanking that brought Venezuela down.
@@multatuli1unless your people is like the Saudi which have obedience citizen the home world most devout religion which deter other to invade cause that will anger billions of people. the country will eventually fall given how reliance it is the one commodity, if you are not bow your head to more powerful country, you are screwed. Maduro is probably jealous of the Saud family.
Yeah keep thinking that at the end you’re an American brainwashed if you’re Venezuelan you already should know it’s fault of the government of course but the big fault lies on US hands believing they’re the worlds police having jurisdiction in our own sovereignty
Distraction for voters? What voters? The people living in the Roosevelt Hotel in NYC? Logan Airport in Boston?
The one thing Guayana has going for it is it’s not steeped in Spanish and a Latin American Spanish culture of socialism, communism and totalitarianism.
that is why they are targeted
Guyana is also socialist.
Just racism, that's all.
Spanish speaking countries are better than Guyana 😂
Venezuela has plenty of oil, therefore, it is not about the oil. It is a diversion from the chaos that is going 9n in Venezuela.
Venezuella is a just wild card these days
Guyana needs to establish a sovereign wealth fund so they can keep the prosperity going when the oil eventually runs out
It has a SWF
an army to protect itself
They have that
Take a leaf out of Norway's playbook by establishing a national future fund
Wow who'd of thought ? Oil causing conflict ?
Better than Uncle Sam..
Is it oil causing problems?
🇬🇾 🙏🏿✨. Shout out to my 592 family.
Did a joint training mission with Guyana. So many countries in South America and Central America were involved including France and UK. So if anything does happen Guyana does have a lot support
What joint mission? We do not have an army just military personnel whose sole purpose was to control our population. This is a Kangaroo army. How many Brigadier Generals can you get from 5,000 troops? 😂😂😂😂
We have no weapons, no aircraft, no APCs, no tanks, no military hardware whatsoever. Let’s face it, our pants are around our ankles.
Cheers.
Who are you doing a joint training mission with Guyana? that sound so stupid and domineering, even naming France and UK, 2 countries known for stealing resources from 3rd world countries.....................
@@gmog7857 the US, Brazil, and Panama were there. the UK left Guyana in the 60s that’s why they came for this joint training. Working and talking with the people of Guyana, they didn’t mind the UK rule but they do enjoy their independence
Guyana y’all need to stand strong and united and DONT LET MABURRO bully you, this Mexican wishes to learn EVERYTHING about your beautiful country, please stand strong and united.
Guyana has reserves of 18,000 years of producing 600k barrels per day. That's massive
18,000 years?😂 Your maths is wrong
600k × 365= 219,000,000
@@deodatsingh4621 He obviousy missed Math classes thinking any country could have 18,000 years of oil production. They plan to double production to 1.2 million barrels per day by 2027. And so far they found 11 billion barreks so rough math at 1 million a day that is 365M barrels. 11 billion divided by 365M is roughly 30 years of extraction plus or minus actual daily production and whether additional resources are found. Certainly not 18,000 years.
@@muchit3629 Don't forget the last 2 billion barrel is going to be muddy cost more to clean.
@@deodatsingh4621 Was not addressing the economics of extraction just dealing with the math oversight. But yes i know depending on the type of crude extracted it can be more or less expensive to process. I believe that is the case with Venezuelan heavy oils as well as Canadian sandy oils up in the Alberta region.
Most of Guyana's oil will likely be going to Europe especially now in a world without Europe getting energy from Russia
Oil and gas are quite different things
Hmm, like the logic but you don't have the full information.
The oil found in Venezuela and now in guyana is mucb harder to process than saudi or middle east oil. The processing for this was setup in texas on the gulf coast. Venezuelan oil was refined in texas and used by the US, it was a very nice trade but due to instability in Venezuela they stopped and US moved to their own shale, but it should easier for the US to process Guyanaese oil compared to anywhere else in the world. Europe is a consumer an end consumer, i doubt they have as much refining capability as the US.
Liquified natual Gas is a different story.
That's why they will run the fastest to help save somebody
It's not that they are not getting question is who blew up the stream pipeline 1&2
That’s good. More money for Guyana.
The same problem Suriname have with Gayana,the Tigri Region!
didn't Suriname's president say that he stands with Guyana
defend what's yours Guyana
My questions is this? Is the average Guyanese gonna experience the same wealth that has come from oil like the Emiratis and Saudis have experienced
Rome wasn't built in a day
No. Look around the world. Who is experiencing wealth from natural resources outside of a select few countries. That question is almost a joke.
Ask the Guyanese government. It’s on it to capitalize and spread the wealth.
I can’t believe people will commit violence and harm over oil. Yet it has happened for centuries.
GDP as a mesure of wealth means little to nothing. My question would be how have the average hourly wages risen? I wish the good people of Guyana the best but without a Norway model in place I expect the Guyanese elite and politicians to squander this wealth as did Trinidad & Tobago.
Trinidad and Tobago has one of the highest standards of living in the western hemisphere and this even as they have very little oil so I'm not sure where this example comes from. Either way it is everyone's hope that Guyana thrives with their new found wealth but only time will tell.
Saw a video in which people explained how the American state of Louisiana was simultaneously one of the richest American states and one of the poorest American states.
The state makes vast revenue from industries such as the fossil fuel industry but almost all that money goes to corporations while average workers in Louisiana have one if the lowest standards of living in the United States.
CNBC did a fine job. As a Guyanese I approve. Guyana has a long way to go and I do agree that managing the fund like Norway 🇳🇴 is a great example of generational wealth for the people of Guyana.
Good to see that these peoples have a chance for a better life.
No
I am a gyuanaese i am 40 years old ,its funny how the World view guyana as fastest growing ecomony for the Last two years the conuntry is Still the same the infastructure ,health care and 90% of all guyanese are below the poverty line and it getting worse.sorry your news is always wrong.
Agreed use the money wisely
Greed will take over IF not managed correctly. The common man and woman will not see an increase in living conditions if corporate greed wins. Let’s see how this plays out.
Guyana is home to where the Pokemon Mew is.
CNBC= Tell me lies, tell me sweet little lies
Tell me lies
Tell me, tell me lies
Oh no-no, you can't disguise
You can't disguise
No, you can't disguise
There might be a war between Venezuela and Guyana. Hope that never happens...
Guyana has about 600,000 people. What war? The only war possible is between the US and Venezuela.
@@gorankovacevic673we’re not interested. Thanks for the consideration though. Sending love and hugs from America 🇺🇸
@@Aviator526 oh, is that what an aircraft carrier strike group is for? My bad!
Who's going to fight?
@@gorankovacevic673guyana has a big Indian population and India has nukes
Wow, my home country made the news. I was there in December and there have quite a bit of Venezuelans in Guyana. Venezuela needs to worry about their economy. The border issue is all based on colonialism.
This conflict isn’t about oil! Even if Venezuela takes over Guyanese territory, they won’t be able to lay hands on the oil production that’s almost entirely under US oil companies management. The Venezuelan government is not allowed to do business with any US company due to sanctions, plus Venezuela already has the biggest oil and gas reserves of the world within its own territory. This conflict is mainly to provoke political turmoil because of this year’s presidential election that could outs maduro.
Hopefully they use the money to invest in its people and infrastructure
Never! Not this Government.
Support to Guyana 🇬🇾
Essequibo is Guyana.🇬🇾
history has shown in Nauru that the vision of using the limited natural resource would not be able to benefit a small country in the long run even with the short prosperity it brings today. instead it would destroy the country environment as most likely it would not be managed properly as there would be corruption from both local and international people.
President of Guyana we need good drinking water and better living conditions God bless Guyana
Exxon probably got better economic terms with Guyana
its only one oil block, but we have 12 or more where they will have different contracts
As a guyanese citizen the only true winner 🥇 will be the politicians, oh makes the laws an then then side pocket deals 🤦🏼♂️ SNH..
Anex is also called theft
No, its Exxon Mobil's oil boom. Will the people of Guyana benefit, look at what's happening in Papua New Guinea, is the folks there benefiting after all Exxon Mobil is there too.
Dang
300 billion barrels sounds like a lot, but it's only 8 year's worth of global oil consumption at 102 million barrels per day.
a lot for 0.01% of the world’s population
Sound spooky from Exxon side.
Oil startup nation
That’s right people
Describe force? Are we talking the US definition or the European one?
I did not sparkle, it resurfaced. That región have been in dispute for many years. Thank you Britain
Glad to countries getting some good publicity maybe he can be known for something other than the Jonestown incident
Not a blade of grass 🇬🇾🇬🇾
Well done Guyana 🇬🇾 I'm happy for you and your newly found wealth. However, somewhere in this report I distinctly heard the terms used boom or bust. Certainly within less than 100 years from now, the world over will become less dependent for oil. Because of the now advancing rolling out of renewable energy technology, public & private & domestic vehicles are now harnesses the use of the aforementioned. As for the postering of it's neighbour Venezuela 🇻🇪 I really see no danger there. This country's economic has ceased, it already has huge oil reserves which it cannot sell. Therefore laying claims to a region of Guyana where it's recent oil and gas reserves discovered, isn't going to solve Venezuelas problems. 😑
Even we have vast wealth of Dimond an gold also uranium boxsite rubies rum factory sugar we can go on all day
@@user-fe8ns8ch2zand yet the people are still impoverished.
Guyana, watch who is trying to be your "friend".
Guyana caught between the de vil and the deep blue sea😢
I hope Guyana learns the lesson from Norway and Venezuela!!
Make Maduro a bus driver again
Good for Guyana, bad for the environment! I thought we were moving away from oil, why is Exxon and Chevron still finding new oil wells?!
Oil brings a lot of conflict hence war on terror (war for oil) 😢
Citizens should be praying for God to intervene the dispute. Oil comes with greed, and lack of humility, many people are looking for a shortcut to benefit from oil revenues while preventing others (citizens) to do the same.
since 2005, the inflation in most of the economies in the WEF has caused value of goods and services to grow 3 fold. guyana's GDP per capita in numbers alone has grown 20 fold since then!!!!! very precarious situation for a small country like guyana.
we do know that with kuwait is an example the broader community of buyers safeguard the little guy to keep the right to be a safe seller in the market without being encroached upon by other players. my own concern is that the middle east has extra care given to it because of israel's establishment there. i hope that isn't the case.
oh no, guyana about to get "liberated"
Drill drill...money money
But no one talks about, all this oil polluting the planet.
I Am Guyanese & Our Country Needs To Negotiate A Proper Deal With Anyone. Natural Resources Belongs To Guyana & For Exxon and I pay NO taxes and provide no insurance in case or a natural disaster as they have caused many before.. Is Insane 👀
Do it like Norway, they now have over $1.5 Trillion in their Sovereign Fund and amazing infrastructure and a long term sustainable income just off a small percentage of interest from investments future for their people.
Da vizavi e petrol dar e o zona ferbynte😮
Greed is the number one problem of the world. Venezuela, who has 300 billion barrels of oil reserve, wants to fight its neighbor who has barely 11 billion. Shame
Good for Guyana, bad for the environment! I thought we were moving away from oil, why is Exxon and Chevron still finding new oil wells?
Because the world still need fossil fuel ⛽
Americans talking about some country going after another for oil is funny af
lol "it's all about oil". sounds like a motto for the US
I hope they manage it good. Don’t give it all to citizens
But black usually don’t manage money good. Just from track record
This problem can be solved by switching to residual biomass derived drop-in biofuels.
Hi CNBC , Ballan entreprises c.a.-Venezuela , Renewable Energies , to clear the madnesss of violent people patries with nations , blood has a very high price on human beings for a globalized sector in this international world .
As a Guyanese i wanna thank you guys at CNBC for covering this! 🇬🇾❤️
The Venezuelans have had this claim for centuries. The recent discovery of oil 🛢 is nothing new to the matter.
But what is being done to tackle poverty ? Cost of living is still high food items are still expensive
Setting up a sovereign wealth fund a la Norway, while buying US T-bills, are the ways to go.
Go with Finland quality education as well, to ensure generational wealth type accumulation patterns.
Funny lol. just a couple of years, nobody had never heard about Guyanna. All of a sudden, every eye has turned to the country.
Not in Latin America. Guayana has always been part of the South America Social Studies in schools.
Don't give 1-in to Venezuela
Guyana & Belize are the 2 English speaking countries of Latin America.
Guyana u can't let them do that.
America 👀👀👀
OPEC can't be pleased with Canada, the United States,
Brazil and Guyana
all increasing oil production this year.
It might seem that they would be happy if oil prices do end up going up if the Houthis start attacking oil tankers but not if those are oil tankers transporting oil from
OPEC countries.
Guyana is making one of them mess up deals that Africa likes to make
I hope Guyana Prosper with the new wealth boom.
As for Venezuela, I hope Guyana chooses diplomacy till the very last end till there is no other cards to be drawn. Of course the US and Co will come to their aid but this will make loose some form of sovereignty.
International companies deserve less revenue and smaller profit margins, I’m sorry I don’t care about Exxon Mobile exploding their profit. These types of situations where companies setup shop in developing nations, the benefits should lean in favor of the nation so they can develop. The idea that Exxon gets the edge when it comes to that is wrong. People > large international companies
What do you think happened in countries like Saudi Arabia. For Saudi Arabia an American company started extracting oil and make Saudi Arabia rich. Even til this day Saudi Aramco winch is valued at $2.5 trillion the third most valuable company in the world stands for Arabian American oil company. You can't expect a third world country to be able to extract the resources in a quick manner, it's better to have a company with expertise. As time goes on you use the money to make your own company or aquire the existing ones as the Saudis eventually did.
it was slightly in exxon favour but we had idiots running Guyana in the past.
@@seanthe100 we all know Exxon isn’t setting up shop in Guyana just to help them industrialize and learn how to do it themselves. Exxon has plans for lopsided profit in that country lasting decades and will use political power to maintain it. Private oil companies have a horrible history in South America, not to mention to US led coups to ensure they could still operate in the region.
how america isn't going for oil there in south america but going so far to iran and iraq?
It tried theres a reason why there was so many coups
Also the US went to the middle east to protect the petro dollar
We have 10s of thousands of Venezuelans coming through the back door into the US. Give them some help and I bet you can get them to fix our Maduro problem.
Maduro: we want that region
Guyana: we have powerful friends
Maduro: 😮
Guyana: 😅
God bless Guyana, Exxon and these United States. 🇬🇾🇺🇸. Still winning!
They will need American democracy soon …..
Exxonmobile is already there teaching them about Democracy, the US government well be there to gave guyana freeDUMB, whenever a war breaks out in that area😅
UASS:- dont worry guys anyone needs help.! We can come for warm help😀😀😀
You can have your own opinions but not your own facts. Venezuela didn’t mismanage its energy sector- they used to provide fuel to poor American households every year during winters when our own government didn’t provide winter heat for poor people
Strength to black Indians of Guyana such beautiful country
we are not Africians and indians, we are Guyanese ok
Yes ,they aren't indians ,they are all africans there .
You are speaking about *_burning oil the next 30 years....???_* .........................."Hold my car :))"
53 years old, always new Guayana was part of Venezuela.
yeah guayana and not Guyana
With the KNOWN oil reserves that Venezuela already has, with a functional governance system, the Venezuelan people would be living in luxury like the AUE, Saudi, and Norwegian folks. Instead, it is one of the poorest countries in South America.
Ditto for the Russian people, who are among the world's most educated people, a northern European people like the Fins, Swedes, Estonians, Latvians, Norwegians et al. But unlike those smaller Northern European neighbors, Russia is an 11-time zone nation with more oil, more gold, more gas, more fresh waters, more timbers, more fertile lands, more iron ore, and more other other rare earths and minerals than 99.9% other countries. Yet, Russia also has the per capita income of a Second or Third World nation, like Vietnam, Thailand, Indonesia, etc.
When you find out Venezuela and Russia are bosom buddies, you start to wonder why people nurture political leaders like Chavez, Putin, the Dear Great Leader of North Korea, the Ayatollah et al. And, until Xi made himself Communist Emperor for life, recently, China's leadership at the top changes hands every 10 years... so even as a Communist country, it actually has fresh blood revolving through its top positions, unlike Russia, North Korea, Iran, and other systems based on age-old tribal king and imperial rulers.
Love from India
I hope the US will sell some military equipment to Guyana to build up it's military mabey sell some destroys would be nice
The new Iraq vs Kuwait
as americans have nothing todo with it