(Bloomberg) — Guyana is accelerating efforts to diversify its economy and expand domestic energy infrastructure as offshore oil production continues to drive rapid economic growth, according to President Irfaan Ali.
Speaking in Georgetown, Ali said the government is using rising revenue from ExxonMobil-operated offshore developments to fund infrastructure, power generation and industrial projects aimed at reducing long-term reliance on crude exports. Since first oil production began in 2019, the country has emerged as one of the world’s fastest-growing producers and now ranks among the highest oil output per capita globally.
The government has significantly increased national spending in recent years to support new roads, bridges, power projects and social programs, while also investing in sectors such as agriculture, mining and manufacturing to broaden the economic base. Officials say the strategy is designed to help Guyana avoid the so-called “resource curse” that has affected other oil-dependent economies.
Natural gas development is also central to the plan. A gas-to-shore pipeline linked to offshore production is expected to come online later this year, supplying feedstock for power generation and industrial use while helping reduce electricity costs and improve reliability. Additional investments in infrastructure and energy are aimed at supporting manufacturing, data centers and other non-oil industries.
Despite rapid growth, challenges remain, including rising costs, infrastructure bottlenecks and the need to balance spending with long-term fiscal stability. Oil production currently accounts for a large share of Guyana’s economy, underscoring the importance of diversification as development accelerates.
Reporting by Kevin Crowley, Bloomberg. Edited for length.
Pictured: The One Guyana FPSO. Image provided by EnerMech.
