Guyana’s Oil Wealth

As tensions escalate in South America, Guyana finds itself at the nexus of an aggressive campaign by Nicolás Maduro’s Venezuela and a quiet, calculated economic takeover by China. Both nations, albeit with different tactics, are working to undermine one of South America’s most promising democracies and capitalize on its oil wealth. Yet the United States remains conspicuously absent, failing to protect a critical ally and its own strategic interests.

Venezuela’s claim to Guyana’s Essequibo region is a farce, a manufactured controversy rooted in desperation rather than legitimacy. The boundary was settled in 1899 through international arbitration, an agreement Venezuela respected for decades. Now, Maduro, facing economic collapse and political unrest at home, is dredging up this dispute to distract his people and rally nationalist fervor. The real prize for Caracas is not historical rectification—it’s Guyana’s massive oil reserves, discovered in the very waters Venezuela seeks to control. Maduro’s sham referendum and military deployments near Guyana’s border underscore the regime’s willingness to use intimidation and extortion as foreign policy tools.

While Venezuela rattles its sabers, China is embedding itself deeply into Guyana’s economy. Through its Belt and Road Initiative, Beijing has funded key infrastructure projects, from bridges to ports, creating long-term dependencies on Chinese capital. Huawei—banned in the U.S. for security concerns—has been entrusted to expand Guyana’s surveillance infrastructure, further entrenching Chinese influence. This creeping economic dominance leaves Guyana vulnerable to exploitation, weakening its sovereignty while cementing China’s geopolitical hold on the region.

The stakes for the United States could not be higher. Guyana’s oil reserves are projected to exceed 10 billion barrels, placing it among the most significant energy discoveries in decades. Control over Guyana’s resources would allow adversaries like China or Venezuela to reshape global oil markets, undercutting U.S. energy security. Worse, failing to defend Guyana would embolden authoritarian regimes throughout the hemisphere, undermining the stability of America’s closest neighbors.

Washington cannot afford to remain idle. The Biden administration’s decision to ease sanctions on Venezuela has emboldened Maduro at precisely the moment he should face maximum pressure. Meanwhile, U.S. engagement with Guyana has been insufficient, allowing China’s influence to flourish unchecked. A coherent U.S. strategy must address both of these threats head-on.

The United States should immediately strengthen its economic partnership with Guyana. The U.S. International Development Finance Corporation should prioritize loans and guarantees for critical infrastructure projects, countering Beijing’s dominance while enabling U.S. firms to compete. Encouraging American investment in agriculture, healthcare, and technology would help diversify Guyana’s economy, reducing its reliance on Chinese capital and foreign debt.

On the military front, the U.S. must expand Foreign Military Financing to modernize Guyana’s defense forces, equipping them with radar systems, drones, and fast patrol boats to protect their borders and offshore waters. Joint exercises led by U.S. Southern Command would build Guyana’s military capacity and send a clear signal to Venezuela that intimidation will not be tolerated. Additionally, a rotational U.S. naval presence near Guyana’s waters would provide an essential deterrent against Maduro’s ambitions.

Finally, Washington must encourage U.S. companies to deepen their involvement in Guyana’s oil sector. ExxonMobil’s leadership has been instrumental in developing Guyana’s resources responsibly, but further partnerships across engineering, technology, and workforce training would ensure the benefits of the oil boom remain in Guyana rather than being siphoned off by foreign creditors.

These steps are not about altruism; they are about securing America’s long-term strategic interests. A stable, sovereign Guyana, aligned with the United States, strengthens regional stability, counters China’s influence, and ensures energy security in a turbulent global market. Conversely, allowing Guyana to fall prey to Maduro’s bullying or China’s economic coercion would mark a failure of U.S. leadership with consequences far beyond the Caribbean.

The United States has the tools to act: economic strength, military capability, and a proven ability to foster partnerships that benefit both nations. What’s missing is the will. It’s time for Washington to step up, defend its ally, and ensure that Guyana’s future belongs to its people—not to Caracas or Beijing.

#Guyana #Venezuela #ChinaInfluence #OilSecurity #USLeadership #NationalSecurity #WesternHemisphere #DefendDemocracy #StrategicAllies