A fairly new revenue earner is the production and export of petroleum. Petroleum was discovered in 2005 in the Spanish Lookout area of the Cayo District. In 2006 production was 30.0 million gallons which generated $88.6 million in export revenues. Belize’s daily output was about 3000 barrels in 2006 and exported 705,644 barrels of crude. Production increased to 40.1 million gallons in 2007 thus generating $142.6 million in export revenues. September 2009 figures indicate over BZ $81.91 million in revenue is generated from exports of crude petroleum from exports of over 40.06 gallons of crude oil. (SIB 2009)

Petroleum extraction declined by 16.3% to 301,473 barrels in 2018, reflecting a 161-barrel reduction in the average daily extraction rate. In its 13th year of commercial operation, crude oil production at Spanish Lookout contracted by 16.8% to 297,520 barrels. With 11.7mn barrels of recoverable petroleum extracted to date, Belize Natural Energy estimates that 2.6mn barrels of recoverable crude oil reserves remain. Still in the start-up phase, production at Never Delay rose by 44.7% to 3,953 barrels during the year.

Source: Central Bank Annual Report 2019

Petroleum Production & Sales Statistics

Total petroleum output has been on a rather steady decline for the past decade. As of 2019 petroleum exported is only 14.7% of what it was 10 years prior. In 2011, despite production reducing, the increase of the export value can be attributed to an increase in oil prices from a global average USD $71.21 to USD $87.04. That year attributed to the industry’s highest contribution toward GDP at 6.441%, according to the World Bank. Forecast for the industry, however, are expected to follow a downward trend as the reserves are used up.

Prices

World Prices Averaged at US$61.40 a barrel in 2019 and the current monthly average as of February 2020 was down to US$53.30 a barrel, according to the World Bank’s commodity prices. As of July 13th, 2020, West Texas Intermediate (WTI) has the price closer to US$40.58, while Brent Crude places it at US$43.25.

Prospects for the Industry

According to Mr. Andre Cho, Director, Geology and Petroleum Department, the Gallon Jug area has the potential for large oil fields. Another well is currently being drilled by RSM Production Corporation in Gallon Jug. To view sitemap of exploration contracts click here.

For further information on petroleum extraction and requirements for exploration contracts click here or contact:

The Geology & Petroleum Department
34-36 Unity Boulevard
Belmopan City
Belize, C.A.
Telephone: (501) 822-2178/2651
Fax: (501) 822-3538
E-mail: geology@mnrei.gov.bz