Energy Excellence in Budget 2024: Guyana’s Oil Sector Milestones

• On January 15, 2024, the Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh announced a $1.146Trn national budget for Guyana’s development in 2024. This has thus far been the largest budget in the country’s history, representing a 46.6% increase from the $781.9Bn 2023 budget.
• Notably, the oil and gas sector’s contribution to the country’s developmental thrust in 2024 will increase by 91.9% from the 2023 figure. This implies that while $125.1Bn from oil revenues supported the national budget in 2023, this year, $240.1Bn from the Natural Resource Fund will be used to cushion the trillion-dollar budget.
• The oil and gas industry has benefited the country’s economic development significantly, both by the direct increase in revenues through earnings from Guyana’s profit shares, as well as the economic boom that was triggered by the emergence of the sector.
• For context, from 2015, the year of the first oil discovery, to 2024, the national budget has increased by over 518% (the 2015 budget was $221Bn).
• Over the last several years, the increasing budget has resulted in tangible infrastructural benefits for Guyanese through the injection of oil revenues into infrastructural development, such as improved roads, healthcare facilities, and upgraded utilities. These transformative investments will continue to benefit the quality of life of Guyanese while also increasing the country’s investment prospects.
• Guyana is poised to become a major player in the global energy landscape, cementing itself as a beacon of progress and prosperity. With continued financial backing from the oil sector, the momentum is expected to continue throughout 2024.

(Source: CariCris)