Dreams of wealth, fears of problems as Guyana finds oil

he U.S. Geological Survey had long estimated that offshore Guyana was rich in gas and oil. Now U.S.-based ExxonMobil has announced a "world-class oil discovery" off Guyana after drilling a well that struck oil-bearing sandstone with an estimated 800 million to 1.4 billion oil equivalent barrels. Exxon and partner Hess Corp. haven't yet announced development or investment plans, which could be complicated by low current oil prices and a dispute with neighboring Venezuela. But Guyanese authorities are racing to set up rules and plans to administer the hoped-for new industry while avoiding what is known as the "resource curse." In places like Congo and Nigeria, oil or mineral wealth has fueled conflict instead of development. More…