EXPLORATION IN GHANA

The effects of Oil and Gas Exploration in Ghana



Abstract

During the past few decades, there have been a number new regions being explored for the purpose of obtaining oil and gas, recently Ghana has been identified as potential ground where explorations can take place, however there are a number of risks to coastlines and communities associated and decisions need to be taken on the best course of action. This paper aims at presenting the oil and gas explorations at Ghana while bringing into consideration some of the risks associated that might adversely affect the country of Ghana and since they lack experience in managing the possible changes that are likely to occur because of the explorations.

The effects of oil and gas exploration in Ghana

Background of the study

Ghana's oil and gas industry has recently been an area of global interest, in 2007 Ghana's oil potential was first surfaced and a large amount of oil and gas reserves were identified that could yield a large amount of crude oil and natural gas. Cosmo Energy announced in 2007 the presence of oil reserves in the western coasts of Ghana, situated approximately 60 kilometres off the shore of Guinea. Compared to Nigeria's oil reserves Ghana only has small reserves which have been identified, there is also much potential in downstream gas sector which would result in employment opportunities for locals and would boost Ghana's economy .Many new locations are being identified in Ghana that could possibly be a huge resource. Even though the United Kingdom has sufficient oil and gas reserves situated on its coastline there is an increasing possibility that with time the existing reserves might not be enough, in 2009 UK's production of oil and gas met 80% of their energy needs. There are still growing concerns over the fact that as population surges the requirements of oil and gas will continue to elevate for this purpose UK needs to identify potential locations which could be explored for resources. Establishing oil and gas companies is also a huge potential for businesses, it also create employment opportunities for people. This proposal highlights the possible business opportunities situated in Takoradi, western Ghana (DECC, 2012).

According to Harding (2010) Takoradi is increasingly becoming a new potential hotspot for oil reserves which haven't been explored as yet. However there is a growing concern for the effects that such exploration might have on the coasts of Ghana, Tokaradi also has one of the major fishing harbours and natural vegetations, which include cocoa, rubber and coconut, oil exploration might have an adverse effect on the overall economy, oil spills are common in explorations and for a country like Ghana where poverty is still a huge issue such oil exploration practices might jeopardize the economy.

Problem Statement

As new oil reserves have been discovered at Tokaradi, Ghana faces a concerning issue of whether to allow foreigners to commence exploration while endangering the local communities and local businesses.

Research aims and objectives

Research aim

The purpose of the study is to find ...