What happened?
ExxonMobil ($Exxon Mobil Corporation XOM$) Guyana made its first oil discovery of 2024 in March at Bluefin in Guyana's Stabroek block. The discovery well encountered 197 feet of hydrocarbon-bearing sandstone. This adds to over 30 discoveries on the Stabroek block since 2015.
How much can they pump?
A consortium led by ExxonMobil which controls all oil production in Guyana is pumping about 645k bpd in Guyana, up from about 400,000 bpd in late 2023, the U.S. producer said at a press conference on Tuesday.
Which corporations will be benefiting?
Exxon with its partners Hess Corp ($Hess Corporation HES$) and CNOOC Ltd ($CNOOC 00883.HK$) has discovered more than 11 billion barrels of oil and gas and Guyana has emerged as the world's fastest-growing new oil province in a decade. According to Exxon, the group may develop up to 10 offshore projects in the country and has proposed budgets of about $40 billion for six projects so far, of which $29 billion have been spent.
What is the oil output by 2027?
The group mentioned that its fourth, fifth and sixth oil projects - Yellowtail, Uaru and Whiptail - would have a production capacity of 250k bpd each, bringing oil output in Guyana to over 1.2m bpd in 2027.
Outlook of Brent oil price.
Currently, Brent oil price is heading higher within the upward channel and may hit the resistance zone around US$89-91. Support is US$81-83.
Beneficiary of Guyana oil.
Traders may look into companies that are directly involved in the Guyana oil production or trade within O&G companies that may ride the overall uptrend in the oil price.
| Ticker | Company Name | Last Closing (US$) | Current Market Cap (US$ 'bn) | 1-month Total Return (%) |
| XOM | Exxon Mobil Corp | 116.24 |
461.22 |
11.21 |
| CVX | Chevron Corp | 157.74 |
292.97 |
3.77 |
| SHEL | Shell PLC | 67.04 |
215.71 |
6.7 |
| SLB | Schlumberger NV | 54.81 |
78.53 |
13.41 |
| HES | Hess Corp | 152.64 |
46.88 |
5.03 |
| Ticker | Company Name | Last Closing (US$) | Current Market Cap (HK$ 'bn) | 1-month Total Return (%) |
857 |
PetroChina Co Ltd | 6.69 |
1848.17 |
8.43 |
883 |
CNOOC Ltd | 18.12 |
901.52 |
12.69 |
| Ticker | ETF Name | Last Closing (US$) | Current Market Cap (US$ 'bn) | 1-month Total Return (%) |
| XLE | Energy Select Sector SPDR Fund | 94.41 |
39.55 |
10.48 |
| VDE | Vanguard Energy ETF | 131.7 |
8.79 |
10.49 |
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Disclaimer:
The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.
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