Essequibo, Venezuela, and Oil: A Territorial Dispute with Implications for Energy Integration in Latin America

Abstract

This article examines the territorial dispute between Venezuela and Guyana over the Essequibo territory, emphasizing the role of oil as a key factor in the tension and the possible consequences for energy integration in Latin America. Essequibo, a region historically disputed between the countries, is an area rich in natural resources, coveted by both Venezuela and Guyana, also attracting the interest of extra regional powers and large transnational oil companies. Venezuela, in its regional cooperation project through the actions of PDVSA, considers control over the Essequibo a strategic opportunity to expand its influence and increase its energy potential, which would strengthen its role as a leader in regional energy integration in South America and the Caribbean. The study outlines a historical and geopolitical perspective on the effects of the Essequibo dispute, where control of the region could expand Venezuela's energy base, strengthening PDVSA, the Petrocaribe project, and other energy cooperation projects in the region. On the other hand, Guyana, one of the countries with the highest economic growth in recent years, strengthens its ties with hegemonic major oil companies. The study points out that the conflict, which has intensified in recent years, also compromises the necessary stability for the advancement of regional integration in South America. The presence of foreign powers supporting Guyana, such as the United States, adds complexity to the issue and challenges regional coordination marked by a framework of political fragmentation and regional disintegration, undermining the cohesion among Latin American countries to form a power axis in contemporary geopolitical disputes. This study assesses how this territorial issue impacts the stability and unity of South America, hindering broader energy integration projects in the subcontinent.