Guyana is increasingly being viewed as a more attractive and lower-risk destination for energy investment than neighbouring Venezuela, according to Marco Rubio, who cited concerns among investors over legal security and contract enforcement in Caracas.
Speaking during testimony before the Senate Foreign Relations Committee on Tuesday, Rubio said that while Venezuela holds substantial oil reserves, international energy companies are more inclined to deploy capital in jurisdictions where the business environment is predictable and investor protections are clearly defined.
“Venezuela has a lot of oil. They do, but there’s a lot of oil in other places too,” Rubio said, adding that companies will only invest where they are confident of earning a return and protecting their assets. Without credible guarantees, he noted, investors are unlikely to commit long-term capital.
Rubio emphasised that global energy firms require access to independent courts, enforceable contracts, and protection from arbitrary state action. In the absence of these safeguards, capital will continue to flow toward markets perceived as offering lower political and legal risk.
“That’s part of the transition process, part of the recovery process to normalise their industry,” Rubio said, referring to Venezuela. “If not, they’ll just invest the money in Guyana, or in some other part of the world that has oil. They’re not going to risk it.”
He added that Venezuela has fallen behind newer producers such as Guyana, which has rapidly risen in global prominence following a series of major offshore oil discoveries and the establishment of a stable investment framework.
Rubio suggested that unless Venezuela strengthens the rule of law and restores investor confidence, energy companies will continue to favour Guyana and other markets with clearer regulatory environments and stronger contract protections.
Guyana’s strong production performance continues to reinforce this perception. Minister within the Office of the President with responsibility for Finance, Ashni Singh, told the National Assembly on Monday that the extractive industries recorded some of the country’s strongest growth in 2025, expanding by 21 per cent.
Oil production for the year reached 261.1 million barrels, driven by the startup of the One Guyana FPSO. On average, crude oil production from the Stabroek Block approached 830,000 barrels per day.
Production by vessel included approximately 134,300 bpd from the Liza Destiny FPSO, 249,500 bpd from Liza Unity FPSO, 255,200 bpd from Prosperity FPSO, and just under 191,000 bpd from the One Guyana FPSO.
The figures were presented as part of Guyana’s fiscal package for 2026 and underscore the country’s rapid emergence as a leading offshore oil producer.
Analysts note that sustained production growth, combined with regulatory stability, continues to strengthen Guyana’s appeal to international energy investors.
