Monday, September 26, 2022
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New competition in the fuel oil market

Countries in the developed world are moving away from extracting crude oil. Countries whose economies once depended on fuel oil are looking for alternatives not only for extraction but also for use. All these initiatives are being taken to reduce carbon emissions. However, Guyana, Suriname and Ghana have recently joined the fuel market.

The two South American neighbors, Guyana and Suriname, have discovered hundreds of millions of barrels of oil in the offshore basin, according to an offshore technology conference with government officials from three countries in Houston, Texas. They want to make maximum use of these mineral resources when there is demand in the market. Ghana, an African country on the other hand, is said to have taken special initiatives to extract the country’s crude oil.

“Millions of our people in Africa are still without access to electricity,” said Matthew Oppoku Premp, Ghana’s energy minister. As a result, even if the current world is leaning towards renewable energy instead of fossil fuels, we have to take a different path. There is no way to keep the natural sources of fuel oil untouched. ‘

Ghana has natural reserves of about 500 million barrels of crude oil. The country has become active in extracting these fuels. As part of this, a loan of ৬ 1.65 billion was applied for last month. It is awaiting parliamentary approval.

Earlier this year, Exxon, the world’s top oil producer, withdrew from the deep-sea oil extraction project in Ghana. Exxon came out of the project as the area under the project is at high risk of earthquakes. As a result, large sums of money are needed for Ghana to keep the project afloat and for the development of the fuel oil and gas block.

“As a small country, we do not have the capability and framework for large-scale oil extraction,” said Virat Jagdeo, Guinea’s vice president at the conference. As a result, our fuel oil sector will not be able to achieve rapid growth. However, we have continued the trend of gradual expansion in this sector.

He added that “three-quarters of Guyana is surrounded by forests. This is giving us a big advantage in reducing carbon emissions. This large forest area will balance the amount of carbon emissions due to the extraction of fuel oil and gas.

According to him, the tiny country is currently extracting more than 100,000 barrels of crude oil a day. Most of these oils come from the ExxonMobil and Hess managed Strawbreak block.

Meanwhile, Patrick Burns, a senior official at Suriname’s state-owned fuel oil company, said: “We need to realize how much the oil and gas sector is giving us at the end of the day. Moreover, we need massive investment to shift to the renewable energy sector. The state-owned fuel oil company plans to speed up extraction in five more blocks.

France is in talks with TotalEnergy, Qatar Petroleum and Chevron Corporation in the United States to extract unused fuel oil. In the meantime, the companies have been allowed to extract fuel oil from three blocks outside the mainland.

Source: Reuters

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