Study Finds Jamaica is Sitting on Massive Oil Reserves

Jamaica’s Oil Potential: Unlocking a New Era of Economic and Energy Prospects
Jamaica has long been known as a tropical paradise—famous for sun, sand, and reggae. But beneath its sparkling waters lies a different kind of treasure. For nearly 70 years, the island has quietly hoped to become an oil producer. Recent developments suggest Jamaica may finally turn this dream into reality. With promising data and international interest, the country stands on the verge of an energy breakthrough that could transform its economy forever.

The Geological Treasure Beneath Jamaica’s Seas - Overview of Jamaica’s Offshore Oil Reserves
The country's most promising oil prospects are located in the Walton Morant and Morant Basins offshore. These basins stretch over 22,000 square kilometers—an area larger than three million football pitches. Within these waters are several key targets, including Calibri, Thunderball, Moonrakaker, and Blofeld. Estimates of how much oil might be there vary, ranging from 2.4 billion to as much as 7 billion barrels. That’s enough to make Jamaica a serious player in the oil world.

Evidence Supporting Oil Prospectivity
Analysis by top energy experts shows why this area looks so promising. Gaffne Klein, a respected energy analyst, estimates the basin contains roughly 2.4 billion barrels based on geological data. United Oil and Gas (UOG), the company leading the effort, suggests the reserves could reach 7 billion barrels, depending on how new data turns out. Their optimism stems from advanced seismic imaging and recent surveys, which reveal multiple “leads”—possible drilling spots—that could hold significant oil deposits.
One standout target is Calibri, estimated to contain around 400 million barrels. That’s double what Ghana found in its Jubilee field back in 2010. The chances of success are encouraging: Klein assesses about a 19% likelihood, which could grow to 33% once more core samples are in. These numbers make the project look not just feasible but highly promising.

Study Finds Jamaica is Sitting on Massive Oil Reserves

Why Jamaica’s Oil Play Is Unique and Promising - Advantages of Shallow Water Drilling
Unlike deeper offshore locations like Guyana, Jamaica’s waters are relatively shallow—ranging from 50 to 2,000 meters deep. This means drilling costs are much lower, and risks are smaller. Easier drilling translates into quicker, cheaper exploration. Plus, shallow water operations match recent global standards focused on sustainable energy. They fit well within new environmental rules and social standards that big oil companies now follow.

Industry Interest and Investment Attractiveness
Major oil companies are already paying close attention. Jamaica’s large, under-explored basin offers a chance to be a first mover in the Caribbean—an area hungry for energy. Companies are considering joint ventures or farm-out deals, where they share risks and profits. UOG owns 100% of the license, but they are open to bringing in partners. This flexibility could help unlock the full potential of Jamaica’s oil reserves quickly.

Market and National Relevance
Jamaica relies heavily on importing fuel, which drains its economy. Oil discovery could cut those imports, save money, and grow the local industry. The project could boost GDP significantly—possibly doubling it—while generating over $30 billion in taxes over time. It would also create jobs, improve infrastructure, and help fund education and healthcare. This isn’t just about drilling holes; it’s about reshaping the entire country.

The Road to Drilling: Opportunities, Challenges, and Timelines - Regulatory and Operational Milestones
The government granted UOG a license extension until January 2028. That means they have a limited window to start drilling. The company is currently working to secure $50 million needed for the first well. Next steps include seismic surveys and obtaining environmental permits from agencies like NAYPA. Time is tight, but progress is happening fast.

Investment and Economic Considerations
The $50 million investment might seem small compared to the potential billions in oil. But finding the cash involves negotiations with big investors and regional partners. If everything aligns, Jamaica could see its first offshore well drilled within months of completing core sampling. Success could lead to commercial production in a year or two, setting a new energy course for the island.

Risks and Mitigation Strategies
While the promise is huge, risks remain. Political stability, environmental concerns, and revenue management are key issues. Countries like Nigeria and Venezuela have experienced difficulty managing oil wealth, leading to corruption and social unrest. Jamaica must build strong laws to ensure transparency, protect the environment, and share benefits fairly. Poor management or environmental damage could undo the project’s gains.

Global Context and Lessons from Other Countries - Comparing Jamaica to Guyana
Guyana’s oil rush began in 2015, leading to rapid growth. Today, it produces over 600,000 barrels daily. Its success came partly because the oil fields are deep underwater and complex. Jamaica’s shallow waters mean drilling costs are lower, and development could be faster. Jamaica might avoid some of Guyana’s pitfalls by keeping things simple and cost-effective.

Cautionary Tales and Best Practices
Countries like Nigeria, Angola, and Venezuela warn us about the dangers of mismanagement. Corruption, lack of transparency, and environmental damage can turn oil wealth into a curse. To succeed, Jamaica needs clear laws, honest governance, and strong environmental policies. Learning from others helps avoid repeating mistakes.

Study Finds Jamaica is Sitting on Massive Oil Reserves

Unlocking Jamaica’s Potential: Actionable Steps for Success
Immediate Actions for Stakeholders
• Finalize seismic surveys and environmental tests
• Secure funding from investors and partners
• Negotiate joint ventures or farm-out deals
• Develop a clear legal framework for resource management
• Engage local communities to build support

Long-term Strategies for Sustainable Development
• Establish rules for revenue sharing and environmental protection
• Invest part of the earnings into renewable energy projects
• Support education and job training for locals
• Promote economic diversity beyond oil

Building a Future of Energy Independence
Oil could help Jamaica reduce reliance on imports and become more self-sufficient. Plus, they could combine oil with clean energy efforts to build a greener future. Eventually, the island might even become a regional energy hub—offering power and fuel across the Caribbean.

Conclusion
Jamaica’s underground riches could finally bring about a new era for the island. The potential is enormous—billions of barrels worth billions of dollars—enough to propel Jamaica into a new economic chapter. But this chance comes with risks, and decision-makers must act fast and wisely. The time to seize this opportunity is now. With the right moves, Jamaica could turn its underground promise into a lasting legacy—transforming from a tourism paradise into an energy powerhouse. The question isn’t just about finding oil; it’s about shaping the future of the nation. Will Jamaica strike it rich, or let this moment slip away? The answer depends on what happens next.