Oil giant Chevron has officially acquired the Hess Corporation. The merger of the two oil giants came after a lengthy dispute with Exxon Mobil over Hess’ stake in an oil project off of Guyana, a small country on the northern coast of South America.

Oil off the coast of Guyana was first discovered in 2015, and it's the kind of resource oil companies just don’t come across that often anymore — it’s a large basin, said David Goldwyn, president of Goldwyn Global Strategies.

“And once you stick that straw in it, even if it's sort of a mile down, you can continue to drain it at a pretty steady rate for probably 20 years,” he said.

That is a lot cheaper than getting crude from one of the last big discoveries: fracked shale oil in the Permian Basin in the U.S.

“So shale, you have to essentially constantly be drilling and fracking new wells, because they have a very large initial production rate, and then it plateaus,” said Goldwyn.

Production of oil in the Permian appears to be approaching a plateau, he added. Production near Guyana, meanwhile, is still ramping up.

But oil companies aren’t just interested in the amount of oil there but also the type. It’s a medium to light crude, said Matt Smith, an analyst with Kpler.

“It's a barrel which you can pull from it when you refine it, gasoline and diesel — a decent amount of both of those. So it's a very attractive barrel,” he said.

Especially, Smith said, in Europe — which has been trying to cut down imports of similar types of crude from Russia ever since that country invaded Ukraine.