A New OIL POWER in South America? - VisualPolitik EN

Summary

Guyana, a lesser-known South American country with English as its official language and a history of British colonialism, faces challenges such as high crime rates and territorial disputes with Venezuela. Despite these issues, Guyana is on the brink of an economic boom due to significant oil reserves discovered off its coast, estimated at 4 billion barrels. Exxon and Hess Co. are investing heavily, with the government planning to export oil by 2020. However, racial tensions and corruption remain obstacles to Guyana's potential prosperity.

Takeaways

• 🌍 Guyana is a South American country with a predominantly Indian population and English as its official language.
• 🏴󠁧󠁢󠁥󠁮󠁧󠁿 Guyana gained independence from Britain in 1966 and initially leaned towards socialism, earning it the official name 'Cooperative Republic of Guyana'.
• 🇬🇾 The country is one of the poorest in South America, with high crime and violence rates, and is known for its involvement in the international cocaine trade.
• 🔝 Guyana has one of the highest suicide rates in the world.
• 💰 Recent oil discoveries off the coast of Guyana could make it a significant oil power, with estimates suggesting reserves of at least 4 billion barrels.
• 💵 The potential oil wealth could be worth around $200 billion, which could translate to $250,000 per citizen.
• 📈 Exxon Mobil and Hess have committed to investing $900 million a year in Guyana's oil industry.
• 🗺️ There is a territorial conflict with Venezuela, which claims more than 70% of Guyana's land, including areas where oil is being explored.
• 🏝️ Guyana is geographically part of South America but culturally and politically aligns more with the Caribbean.
• 🏛️ The new government faces the challenge of overcoming racial tensions between the Indian and African-origin populations, as well as combating corruption and crime.
• 🚀 If successful, Guyana's oil exports and efforts against corruption could make it one of the richest countries in South America.

Q & A

Which South American country has a majority of Indian origin population and English as its official language?

Guyana is the South American country with a majority of Indian origin population and English as its official language.

When did Guyana gain independence from Britain?

Guyana gained independence from Britain in 1966.

What was the political inclination of Guyana at the time of independence?

At the time of independence, both the government and popular opinion were generally in favor of turning Guyana into a socialist country.

What is the current economic status of Guyana in South America?

Guyana is one of the poorest countries in South America.

What is Guyana known for internationally besides its economic challenges?

Guyana is known for its place in the international supply of cocaine and for having one of the highest suicide rates in the world.

What significant discovery has the potential to change Guyana's economic future?

The discovery of significant oil and gas reserves off the coast of Guyana has the potential to change its economic future.

How much oil is estimated to be exploitable in Guyana and what is its approximate value?

Early calculations estimate that the amount of oil that can be exploited in Guyana is no less than 4,000 million barrels, which is roughly equivalent to $200 billion considering the price of oil.

Which multinational companies are investing in Guyana's oil reserves?

Multinational companies such as Exxon Mobil and Hess Co. have committed to investing in Guyana's oil reserves.

What territorial conflict is Guyana facing with its neighbors?

Guyana is facing a territorial conflict with Venezuela, which claims more than 70% of Guyana's surface as its own, known as the Guyana Esequiba region.

How does the demographic composition of Guyana contribute to internal conflicts?

Guyana's demographic composition, with around 50% of the population of Indian origin and 40% of African origin, contributes to internal conflicts as the two groups are not on friendly terms.

What are the new government's major tasks in addressing Guyana's challenges?

The new government's major tasks include oil exportation, fighting corruption and criminality, and overcoming decades of racial conflicts.

Outlines

00:00

🌍 Overview of Guyana's Struggles and Potential

Guyana, a lesser-known South American country with English as its official language and a predominantly Indian population, has a history of socialism and is currently one of the poorest nations in the region. Known for high crime and violence rates, and a significant player in the cocaine trade, it also has one of the highest suicide rates globally. Despite these challenges, Guyana may be on the brink of an economic boom due to the discovery of substantial oil reserves, estimated at 4 billion barrels, which could translate to roughly $200 billion at current oil prices. Major oil companies like Exxon and Hess Co. are investing heavily in the country, with plans to start oil exports in 2020. This could potentially transform Guyana into a beacon of hope and opportunity in South America.

05:03

🚨 Challenges to Guyana's Future Prosperity

Despite the promising oil reserves, Guyana faces significant challenges that could impede its path to prosperity. The country's territorial claims by Venezuela and Surinam pose a serious geopolitical threat, with Venezuela claiming over 70% of Guyana's land. Additionally, Guyana's demographic complexity, with tensions between its Indian and African-origin populations, has led to racial conflicts and violence. The current multiracial coalition government is tasked with overcoming these deep-seated issues, as well as combating corruption, which is rampant in the country. The government's success in these endeavors will determine whether Guyana can capitalize on its oil wealth and rise to become one of the richest countries in South America.

Keywords

💡Guyana

Guyana is a South American country with a unique demographic composition and official language. It is the main subject of the video, which discusses its history, current state, and potential future developments. The country is described as having a population predominantly of Indian origin and an official language of English, which sets it apart from its neighbors. The video also highlights Guyana's struggle with crime, violence, and its reputation in the international supply of cocaine.

💡Socialism

Socialism is an economic and political system where the means of production are owned and controlled collectively by the community as a whole. In the context of the video, Guyana's initial inclination towards socialism post-independence is mentioned, which influenced its official name as the Cooperative Republic of Guyana. This historical perspective is important for understanding the country's political trajectory and its potential impact on current and future economic policies.

💡Oil Power

An oil power refers to a nation that has significant influence and economic strength due to its oil reserves and production. The video suggests that Guyana is on the path to becoming an oil power with the discovery of substantial oil and gas reserves. This development could potentially transform Guyana's economy and its role in the global energy market.

💡Exxon Mobil

Exxon Mobil is one of the world's largest multinational oil and gas corporations. In the video, Exxon Mobil is mentioned as one of the companies investing in Guyana's oil exploration, indicating the global interest in and validation of Guyana's oil potential. The company's involvement is a key factor in Guyana's push towards becoming an oil power.

💡Hess Co.

Hess Co. is another multinational company involved in the energy sector, specifically mentioned in the video as part of the consortium that discovered Guyana's oil reserves. The company's commitment to invest in Guyana signifies the confidence of the industry in the country's oil potential.

💡Venezuela

Venezuela is a South American country that claims a significant portion of Guyana's territory, including areas where oil exploration is taking place. The video discusses the territorial conflict between Guyana and Venezuela, which poses a significant challenge to Guyana's development and its ability to exploit its oil reserves.

💡CARICOM

CARICOM is the Caribbean Community, a regional organization of Caribbean nations. Guyana is a member of CARICOM, which adds a layer of political and economic complexity to its identity and relationships within the region. The video mentions CARICOM in the context of Venezuela's desire for support from the organization, highlighting the geopolitical dynamics at play.

💡Racial Conflict

Racial conflict refers to tensions and violence arising from racial or ethnic differences. Guyana has a demographic divide between its Indian and African-origin populations, leading to historical tensions and violence. The video discusses how this conflict could impact the country's stability and development, emphasizing the importance of addressing these issues for Guyana's future.

💡Corruption

Corruption is the abuse of power for personal gain, often involving bribery and dishonest practices. The video mentions that Guyana is considered one of the most corrupt countries in the world by Transparency International. This issue is a significant challenge for the country, affecting its governance, economic development, and international reputation.

💡Transparency International

Transparency International is a global civil society organization that monitors and fights corruption. The video cites Transparency International's ranking of Guyana as one of the most corrupt countries, underscoring the urgency of addressing corruption as part of the country's development agenda.

💡David Granger

David Granger is mentioned as the president who took a stance against Venezuela's territorial claims on Guyana. His administration's approach to foreign policy and territorial disputes is highlighted as a turning point in Guyana's relations with its neighbors, particularly Venezuela.

Highlights

Guyana is a South American country with a predominantly Indian population and English as the official language.

It is one of the least known countries in the region, often overlooked by the media.

Guyana gained independence from Britain in 1966 and initially leaned towards socialism.

The country is one of the poorest in South America with high crime and violence rates.

Guyana is known for its role in the international cocaine supply and having one of the highest suicide rates in the world.

There is potential for Guyana to become an oil power with significant oil and gas reserves discovered.

Exxon and Hess Co. are investing in Guyana's oil exploration, estimating exploitable oil reserves of at least 4 billion barrels.

The oil reserves could be worth around $200 billion, which could drastically change Guyana's economy.

Exxon Mobil and Hess have committed to investing $900 million a year in Guyana's oil industry.

The Guyana government plans to start exporting oil in 2020, which could lead to significant economic development.

Guyana's potential economic boom could make it an attractive destination for job seekers in South America.

There are territorial conflicts with Venezuela, which claims more than 70% of Guyana's surface as its own.

Guyana is both geographically part of South America and politically, socially, and culturally part of the Caribbean.

The territorial conflict with Venezuela has been reignited after years of being dormant.

Racial conflict between the Indian and African-origin populations is a continuous issue in Guyana.

The current government is multiracial and aims to overcome decades of racial conflict.

Guyana is one of the most corrupt countries in the world according to Transparency International.

The new government has the task of oil exportation and fighting corruption and criminality.

If successful, Guyana could become the richest country in South America.

Transcripts

Did you know  there is a country in South America where most of its population are of

Indian origin and where the official language is English?

If you don´t know which country I´m talking about, don’t worry, because this is one

of the least known countries in the region and, to be fair, the media doesn’t really

pay much attention to it.

So, a small, little-known country, the media don’t talk much about…

Well those sound like the perfect ingredients for a VisualPolitik video!

We are talking about Guyana, an old British colony who didn’t get independence until

1966.

Interestingly, at the moment of independence, both the government and popular opinion was

generally in favour of turning Guyana into a socialist country.

It was this mindset which gave the country its pinto-esque official name: the COOPERATIVE

Republic of Guyana.

But, let’s focus on the country today.

Guyana is one of the poorest countries in South America.

It has crime and violence rates that are some of the highest in South America…

And that’s saying a lot.

In fact, if Guyana is know for anything, it would be for its place in the international

supply of cocaine…

Oh, and also for having one of the highest suicide rate in the world.

With all this information, you’d be forgiven for being less than optimistic about the future

of this caribbean country.

But, they may get lucky in the near future.

A NEW OIL POWER All the signs are point to Guyana becoming

an oil power.

For the time being, this small republic, with a population of about 750,000 inhabitants

has already got the attention and dollars of multinational companies such as Exxon or

Hess Co.

In fact, after several years exploring the area, on the 13th January 2017, these two

powerful oil companies announced the discovery of what they think could be one of the most

significant oil and gas reserves found for decades.

Oil reserves have been found in deep waters, in the sea mantle, under the coastal waters

of Guyana.

Early calculations estimate that the amount of oil which can be exploited in the country

is no less than 4,000 million barrels and many experts affirm this could be a much larger

quantity.

So, it seems that this country holds a huge fortune just off its shores, but the question

really is - how much is this all really?

Considering the price of oil nowadays, we are talking about roughly $200 billion.

So, leaving other natural resources aside, only petrol, would result in the equivalent

of $250,000 per citizen.

And it’s important to note that the oil reserves could be much bigger than the early

calculations indicate.

Now, it is true that oil exploitation is expensive and requires enormous investment, but this

could still be the first step in a new era of prosperity for Guyana.

So far the oil companies I have mentioned: Exxon Mobil and Hess have committed to investing

$900 million a year in Guyana, over the next few years.

The government is investing too, with plans to start exporting oil in 2020.

This means Guyana could be on the cusp of beginning one of the greatest economics developments

that South America has ever seen.

Yes, Guyana, that poor, violent country, could become the kind of country which other people

in South America who are unemployed might look at and think: “I want to change my

life, I want opportunities…”

Guyana could become that big hope for many people in South America.

Nevertheless, before they start packing, we have to say that it won’t be that easy.

The road ahead is fraught with difficulties...

CONFLICT WITH VENEZUELA Much of the oil exploration is happening in

waters which are claimed by Venezuela.

And, the part they have claimed is not exactly small...

Maduro´s country considers the region known as Guyana Esequiba to be theirs.

And this region represents more than 70% of Guyana´s surface!

So essentially Venezuela is claiming the entire country as their own!

And if this wasn’t bad enough, another area which makes up 7% of its territory is claimed

by their neighbours in Surinam.

If their neighbours had their way Guyana would have been carned up and split between them

long ago.

The thing is, this conflict over territory seemed to have been forgotten for years.

This was likely a consequence of the good relations that the government kept with Cuba...

a country that holds a lot of influence over this part of the world.

It was also likely because Venezuela wanted the support of organizations such as CARICOM,

the Caribbean Community, of which Guyana is a member.

So, you might be wondering, is Guyana a Caribean country, or is it a South American country?

Well it’s sort of both... geographically speaking the country is South American.

But, politically, socially, and culturally speaking, Guyana is a Caribbean country.

In fact, Guyana was one of the countries which used to benefit from PetroCaribe, an initiative

by Hugo Chavez that was supplying cheap, high quality, oil to those countries which were

deemed "friends".

But it all changed when, in May 11th 2005, the left-wing government of the People's Progressive

Party lost the general elections to a coalition headed by the new president David Granger,

a man who was closer to Washington and who decided to end, once and for all, the claims

coming from Venezuela.

At that moment, the long ignored conflict defrosted and things started to heat up.

The conflict is today in hands of the United Nations.

But, whatever the solution might be (if there is any) it’s important to be aware of this

threat to the potentially prosperous future of Guyana.

RACIAL CONFLICT Another important risk is in the recurrent

racial conflict in Guyana, which is a continuous presence in the country’s media.

Guyana is a complex country demographically: around 50% of its population is of Indian

origin while 40% is of African origin.

These two big groups are not exactly on friendly terms.

In fact, the black minority claims that, for years, the Indian majority has obtained privileges

from the government and always got their way.

This has triggered recurrent waves of violence.

Luckily, the situation seems to have improved.

In fact, the winning coalition government is quite multiracial.

However, there is still the possibility that further internal conflict will flare up.

In any case, not only does this new government have a great opportunity to overcome decades

of conflicts once and for all, but it was also elected to fight violence and corruption

in the country - something that Guyana certainly needs - being one the most corrupt countries

in the world according to Transparency International.

So the new government has quite a few major tasks ahead of them... oil exportation as

well as a fight against corruption and criminality in the country.

The thing is, if they achieve their goals, Guyana will attract great attention and may

become the richest country in South America, if they use their resources well.

But will that happen?

That is the big question...

So what do you think?

Will Guyana be able to successfully take advantage of their newly discovered oil?

What position should Venezuela adopt?

Well, as always, I hope you found this video interesting.

If that were to be the case, please do click that like button and subscribe to the channel!

And if you are looking for something else to watch be sure to check out our video on

why Switzerland is so wealthy.

You can watch that video by clicking here (points).

And as always, I’ll see you in the next video!