Guyana’s high quality oil allowed it to survive the COVID-19 storm – US Analyst

AMI analyst Arthur Deakin
Kaieteur News – As a result of having a light sweet crude, Guyana survived the severe economic pains of the COVID-19 pandemic that hit the world last year. Making this and other comments is Arthur Deakin, Analyst at American Market Intelligence (AMI) in the United States of America.
AMI, a management consulting firm, has been providing insights that unlock opportunities in Latin America through market intelligence, research and analysis.
During his first appearance on Kaieteur Radio’s show Guyana’s Oil & You, Deakin was asked to share his thoughts on how Guyana survived some of the hardest parts of the COVID-19 2020 pandemic, rather than countries less fortunate in that.
To this, the US Analyst reminded that because Guyana’s crude is lower in sulfur content, it is in high demand worldwide, but especially in China.
“Brazil and Guyana have this type of oil, in addition to their low cost recovery costs, below US $ 40 a barrel. Guyana I think is US $ 35 for Phase One exploration and that price is expected to drop to US $ 25 in Phase Two exploration, ”said Deakin.
These factors, along with the appeal for high-quality raw, made it possible for Guyana to come out on top in this “pretty bad” situation, he added.
When asked to share how he sees 2021 panicking out about Guyana, Deakin noted that he has high expectations that Guyana’s crude growth and demand will only increase.
He added, “China is really increasing infrastructure and construction efforts to revive its economy and is definitely doing a good job so far. So the demand for this type of oil is going to continue to grow, especially as more stringent environmental regulations are passed. ”
Deakin also mentioned that one of the main reasons for the growing demand for this sweeter crude was for the International Maritime Organization (IMO) to pass a law requiring ships to reduce emissions by up to 80%.
“So in 2021, I’m expecting a good year. I expect oil prices to stay around the price where they are or grow slightly. We see a commitment from some of the major producers to limit output until there is more certainty about oil requirements worldwide. The panorama is positive, ”concluded Deakin.