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Energy Security
Oil in the Amazon
A strategic policy brief arguing that Britain should significantly deepen its investment in Guyana's rapidly expanding crude oil and natural gas sector, leveraging Commonwealth ties, North Sea expertise, and growing bilateral defence cooperation to diversify Atlantic energy supply chains, reduce dependence on American and Eurasian crude imports, and counter Chinese influence in the Caribbean.
AUTHORS
Pickthall House
PUBLISHED
September 3, 2025
PDF
TABLE OF CONTENT

1. Guyana's Oil Boom and the UK's Current Position

2. Strategic and Energy Security Case for UK Investment

3. The Venezuela Threat and Defence Cooperation

4. Soft Power, Education, and Institution-Building

5. Risks and Challenges

6. Conclusion

KEY FINDINGS
  • Guyana's oil output could cover three-quarters of UK annual crude imports, offering major Atlantic energy diversification from Russian and American sources.
  • China's investment in Guyana has surged from $256 million to $10.6 billion since 2019, making early British strategic positioning urgent.
  • Commonwealth ties, North Sea expertise, and a new UK-Guyana defence MOU give Britain unique leverage compared to other foreign investors.

    • Guyana's Oil Boom and the UK's Current Position

    Since ExxonMobil's 2015 discovery of major offshore reserves, Guyana's output has surged to 664,000 bpd and is targeting 1.7 million bpd by 2030. British traders BB Energy and JE Energy have secured crude marketing contracts, and firms like EnerMech and AquaTerra Group are establishing presence in the natural gas sector.

    Strategic and Energy Security Case for UK Investment

    In 2024, 39% of UK crude imports came from the US and 33% from Norway. Guyanese crude — low-sulphur, high-API, a direct replacement for Russian Urals-grade oil — could arrive directly to British deep-water ports like Milford Haven, reducing costs and Eurasian exposure. 66% of Guyana's crude exports already go to Europe.

    The Venezuela Threat and Defence Cooperation

    Venezuela's Essequibo territorial claim threatens Guyanese sovereignty over almost half its territory. A UK-Guyana defence MOU signed in April 2025 covers training, cybersecurity, and intelligence sharing. Greater British military presence in the Caribbean would enhance strategic autonomy and value as a partner to both Guyana and the US.

    Soft Power, Education, and Institution-Building

    British universities, including UEL and the University of Aberdeen, have existing or emerging educational partnerships with Guyana. Expanded cooperation in HSE, ESG regulation, and emissions management would reinforce Britain as a long-term, credible partner rather than a transient extractive actor.

    Risks and Challenges

    Venezuelan irredentism, environmental risks from deepwater extraction, corruption, poor governance, and Dutch disease pose investment risks. These are areas where British expertise in North Sea management and ESG compliance can be offered as genuine value-add rather than liabilities.

    Conclusion

    Guyana's oil boom is already attracting ExxonMobil, CNOOC, and TotalEnergies. Britain's Commonwealth relationship, North Sea expertise, and City of London finance give it a distinctive position. Deepening investment now would diversify UK energy supply chains, extend British soft power in the Caribbean, and provide strategic leverage relative to both American and Chinese interests in the region.