Global oil buyers turn to Guyana amid Strait of Hormuz crisis, with Chevron leading the charge

Published: 2026-05-06 04:20:10 ET CVX

Published on 05/06/2026 at 04:20 am EDT

Global oil consumers are increasingly looking to Guyana as a stable supply source following the blockade of the Strait of Hormuz, according to a new report from Wood Mackenzie. This marks a significant shift from historical procurement strategies as Middle Eastern supply routes remain compromised.

The energy consultancy's report noted that while a ceasefire in the Persian Gulf has largely held, shipping through the strait remains well below normal levels, with ongoing threats continuing to disrupt vessel movements through the critical energy chokepoint. The supply strain has already fed into global markets, with Brent crude prices rising sharply and tightening availability of both crude and refined products.

Wood Mackenzie positioned Guyana's expanding offshore production within a broader industry pivot toward supply diversification and regional resilience. 'None of these pieces of news are world-changing in their own right. Taken together, they point to the ways that energy security concerns may change the world of oil and gas in the aftermath of the Iran war,' the report stated, adding that 'Guyana, the outstanding success story for offshore oil development in the Americas over the past decade, is accelerating efforts to ramp up production.'

The consultancy acknowledged that increased production from the Americas cannot quickly replace Gulf disruptions. However, regional supply helps cushion the economic impact of global shocks, even as prices remain heightened internationally. The shipping routes from suppliers such as Guyana also provide greater certainty and security, given their ability to bypass the Strait.

Rystad Energy largely agreed with Wood Mackenzie’s assessment, noting that several South American oil developments, including those offshore Guyana, are gaining increased importance due to recent Middle Eastern developments. The convergence of geopolitical instability and Guyana's production trajectory has created what Rystad views as a structural shift in sourcing strategies.

Among those placing increased reliance on Guyanese supplies is US energy giant Chevron, which gained exposure to the offshore Stabroek Block through its acquisition of Hess Corporation.

Chevron CEO Mike Wirth told investors that Guyana now forms part of a portfolio of 'diverse waterborne equity crudes' that underpins Chevron's ability to optimise flows across regions, alongside supplies from Kazakhstan, the Permian basin, Venezuela and Argentina.

'The unique combination of Chevron Corporation's industry-leading refining complexity and our diverse waterborne equity crudes from TCO, Guyana, the Permian, Venezuela, and Argentina creates opportunities for value capture through integration,' Wirth stated on the company's first-quarter earnings call, as quoted by OilNOW.

This approach allows Chevron to redirect crude to where it is most needed, maintain high refinery utilisation and capture margins as prices shift across the value chain, particularly valuable during periods of supply disruption. 'Our portfolio provides options to move things around in times like this,' Wirth said, as tensions in the Middle East continue straining supply networks and driving up prices.

Chevron has been systematically increasing its use of equity crude within its refining system. Wirth revealed that US refineries are now running more than 50% equity crude, while the company expects that share to exceed 40% in Asia, a significant rise from historical levels. The shift enhances Chevron's ability to capture value when margins move between upstream production and downstream refining, a dynamic amplified by recent market volatility.

Guyana's inclusion in that portfolio reflects its growing importance as a source of globally traded crude. Markets in Europe and North America have increased imports of Guyanese crudes in recent years, with the light, sweet characteristics of Stabroek production proving particularly attractive to refiners.

Asian refiners are also looking toward Guyana as a feasible alternative to Persian Gulf supplies. India has increased its purchases of Guyanese crude, importing 297,000 barrels per day in January, before the conflict ignited.

Chevron gained direct exposure to those barrels through its Hess acquisition, securing a 30% stake in the prolific Stabroek Block. The deal cleared a major hurdle last year after Chevron prevailed in a legal dispute with ExxonMobil, allowing it to proceed with the acquisition and establish a foothold in one of the world's fastest-growing oil-producing regions.

Wirth indicated that Chevron's integrated upstream and downstream operations delivered 'significant integration benefits' during the quarter, as the company maintained supply into tight markets and maximized margins. The performance validates the strategic rationale behind the Hess acquisition, timing that appears increasingly prescient given current supply uncertainties.

For Guyana, the heightened strategic focus represents both an opportunity and a source of pressure. As global consumers diversify away from Middle Eastern dependence, the country's ability to accelerate production whilst maintaining operational stability could determine its long-term positioning in increasingly fragmented global energy markets.

Guyana has emerged as one of the world's fastest-growing oil producers, with monthly output reaching 914,000 barrels per day in March 2026. When the fifth project, Uaru, comes online later this year, production is expected to surpass 1mn barrels per day, further cementing the country's position as a significant global supplier.