Topic: Economic Impact of Oil and Gas Sector in Ghana: A Case Study of the Western Region.
Abstract
The objective of this paper is to examine the contributions of oil and gas sector to economic growth. The paper seeks to give a composition of Ghana's oil and gas sector in the western region. The contributions of oil and gas sector to economic growth will be explored in this study which includes; the direct impact, the indirect impact, and the induced impact that in aggregate provide a measure of the total economic impact of the oil and natural gas industry.
• Direct impact is measured as the jobs, labor income, and value added within the oil and gas industry.
• Indirect impact is measured as the jobs, labor income, and value added occurring throughout the supply chain of the oil and gas industry.
• Induced impact is measured as the jobs, labor income, and value added resulting from household spending of labor and proprietor’s income earned either directly or indirectly from the oil and gas industry’s spending.
The paper also seek to give useful recommendations as to future researches in this area as well as recommendation that will sustain and improve the revenue generation from oil and gas sector.
Background
Oil was first discovered in Ghana in 1970 by the US firm AgriPetco off the coast of Saltpond. However, the reserves were not in sufficient commercial quantities and were abandoned for some time. The field is currently being exploited by a joint venture comprising the Ghana National Petroleum Corporation (GNPC) and Lushann Eternit Energy Limited of Houston. The Saltpond Oilfield is currently producing 600 barrels of crude oil per day. The Jubilee Oilfield was discovered in June 2007 by Kosmos Energy LLC in the Gulf of Guinea’s Tano Basin. Ultimately, 278 million barrels of oil are expected to be recovered over 20 years of the Phase I development (Tullow, 2009). However, the recoverable reserves of the field are estimated to be more than 600 million...