Venezuela and Guyana oil battle: Here’s what you need to know.

TLDR:

• The dispute between Venezuela and Guyana over the Essequibo region is affecting Guyana’s economic development due to Venezuela’s interference with its oil exploration and discoveries.
• Tensions escalated in the past five years as Guyana’s oil industry flourished, making the region more economically valuable, sparking renewed conflict between the countries.

Exploring the key elements of the article, Venezuela held a referendum in December 2023 to annex two-thirds of Guyana’s oil-rich territory, leading to heightened tensions between the two countries. Guyana’s economy saw rapid growth with commercial oil drilling, drawing investments in infrastructure and resulting in significant oil revenue. ExxonMobil played a crucial role in Guyana’s oil production but also faced strained relations with Venezuela. Despite the dispute, ExxonMobil continued with its projects in Guyana. The article also highlights the potential for international support for Guyana and the possibility of oil sanctions against Venezuela, as well as the challenges Venezuela faces in revitalizing its oil sector amidst its unstable political environment and concerns over climate change.