Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on March 17, 2018

Bookmark and Share

Ghana is ‘about to have an oil boom’

Production

Ghana, the west African nation known as one of the world’s largest cocoa producers, is on course for skyrocketing economic growth this year thanks to an entirely different commodity.

Ghana is “about to have an oil boom,” Imad Mesdoua, senior consultant for Africa at Control Risks, told CNBC via telephone.

“This will primarily be driven by rising oil prices, expanding production and new deals which are likely to come online in the coming six months,” Mesdoua explained.

The U.K.’s Tullow Oil and Italy’s Eni have both expanded their operations in the former British colony in recent years. Tullow started a multiyear drilling program on TEN, its second field in Ghana, in February of this year, having pumped its first oil from the site in 2016. Eni, meanwhile, began production on its Sankofa field in mid-2017.

Earlier in March, Ghana’s President Nana Akufo-Addo announced that the country’s economy was set to grow by 8.3 percent in 2018, above the 6.8 percent initially estimated in its annual budget. The figure is demonstrative of a significant economic uptick, given that the annual growth figure for two years earlier was just 3.6 percent according to Akufo-Addo, as reported by Reuters.

Ghanaian President Nana Akufo-Addo at a press conference in the Federal Chancellery, Berlin, Germany, on February 28, 2018.

Simone Kuhlmey | Pacific Press | LightRocket via Getty Images
Ghanaian President Nana Akufo-Addo at a press conference in the Federal Chancellery, Berlin, Germany, on February 28, 2018.

Ghana’s anticipated growth falls well above the World Bank’s average for the African continent. This was calculated at 3.2 percent for 2018, as released in January of this year.

Despite the impressive figures, Philip Walker, Ghana analyst at Economist Intelligence Unit, added the caveat that the non-oil segment of Ghana’s economy was seeing a “decent level of growth but not spectacular.”

Gold was Ghana’s top export product in 2016, according to the Observatory of Economic Complexity, accounting for 42 percent of the total. This was followed by cocoa, at 18 percent and then crude oil, at 9.1 percent.

Political promise

Ghana’s positive economic news is supported by the country’s political backdrop.

Akufo-Addo was elected in December 2016 on an economic agenda which includes cutting corporate taxes, fighting corruption and formalizing the economy.

Mesdoua described Akufo-Addo’s “eagerness to diversify the economy” and “intent to modernize policy making.”

But despite the promising growth prospects, Ghana remains a lower middle income country. Its gross domestic product per head was $1,610 last year, according to the International Monetary Fund, below the emerging market average of $4,960.

“Ghana’s democracy is a benefit to its economy,” Walker said, but explained that “Ghana has had strong growth in the past but that hasn’t translated into jobs.” According to the Central Intelligence Agency’s 2015 estimate, unemployment in the country is 11.9 percent.

Ghana is also in the final year of a $918 million IMF aid program intended to lift growth while tackling public debt and reducing inflation.

Akufo-Addo has signaled an intention to distance his country from Western aid, speaking of the need to “move Africa away from being cap in hand and begging for aid, for charity, for handouts,” during a December press conference with French President Emmanuel Macron in the capital Accra.

Moving on from cocoa

While Ghana’s oil industry may be ascending, clouds could be on the horizon for its reputation as a world famous cocoa producer.

A farmer opens up a cocoa pod with a machete to extract the beans on November 11, 2015, in Akyekyere, Ghana.

Melanie Stetson Freeman | The Christian Science Monitor | Getty Images
A farmer opens up a cocoa pod with a machete to extract the beans on November 11, 2015, in Akyekyere, Ghana.

Ghana and neighboring Ivory Coast supply 60 percent of the world’s cocoa. According to Vincent Manu, country director for Ghana at the World Cocoa Foundation, the crop is worth 25-30 percent of the country’s agricultural gross domestic product and 28-30 percent of foreign exchange.

But, the industry is threatened due to urbanization in the country. “Young people are not interested because of profitability,” he added.

Climate change is also playing a role. Ghana’s cocoa production this season may be 700,000 tons, falling short of the forecast 850,000 tons due to poor rains, the head of the Ghana Cocoa Board told Reuters earlier this week.

Following the suggestion of diminished yields from Ghana and the Ivory Coast, cocoa prices hit more than one-year highs this week.

CNBC



15 Comments on "Ghana is ‘about to have an oil boom’"

  1. BobInget on Sat, 17th Mar 2018 12:02 pm 

    Let’s talk Canada for just a minute.

    Saskatchewan would support Alberta’s decision to turn off oil taps

    “Saskatchewan Premier Scott Moe says he’ll stand by Alberta if the province decides to restrict oil exports to pressure British Columbia to abandon its opposition to the Trans Mountain pipeline expansion project.’

    Moe said he would “absolutely” encourage Rachel Notley, his Alberta counterpart, to cut off domestic exports of its oil.”

    “If the fuel tanks start to run dry because Premier Notley has turned the tap off, it won’t be Saskatchewan filling them up,” the premier told CBC Radio’s The House.”

    http://www.cbc.ca/news/politics/saskatchewan-alberta-bc-pipeline-trans-mountain-expansion-1.4580650

  2. BobInget on Sat, 17th Mar 2018 12:22 pm 

    (once Trans Mountain is completed, the US will not be Canada’s sole customer)

    Not only is Canada America’s #1 supplier, Canada
    Must Sell its oil at a deep discount to US refiners.
    (why? cause US has a deep pipeline system on two coasts making it a truly world market)

    Put another way. As China, India, Canada’s domestic demand grows, there will be fewer
    barrels available for US delivery.

    What then?
    Oh, Ghana, right?
    No. Ghana mortgaged the next 15 years of oil production to…. guess where?

    Maybe, you don’t care?

    Here’s the skinny. If you are American you should
    be content with the current set-up. No Intermountain, no crude oil shortages here in US.
    We can go on screwing Canadians for as long as they stay still.

  3. Davy on Sat, 17th Mar 2018 12:37 pm 

    bob, why do you try so hard to make it look like the sky is falling. How much do you hate the US on a scale of 1-10? 10 being extreme hate.

  4. BobInget on Sat, 17th Mar 2018 4:43 pm 

    For Davy:

    End To Russia Probe
    He called for “an end to alleged Russia Collusion investigation.”

    By Sebastian Murdock
    5.3k
    220
    The personal lawyer for President Donald Trump has called for the FBI probe into Russia’s interference in the 2016 presidential election to end, one day after Trump fired the deputy director of the FBI.

    Lawyer John Dowd said Saturday morning that Deputy Attorney General Rod Rosenstein should shut down special counsel Robert Mueller’s investigation, The Daily Beast reports.

    The lawyer also cited a Saturday morning tweet by Trump that applauded his Friday decision to fire Andrew McCabe, the former deputy director of the FBI. McCabe, a lifelong Republican, served with the FBI for 21 years. He was less than two days from his retirement, which would have guaranteed him a government pension.

    “I pray that Acting Attorney General Rosenstein will follow the brilliant and courageous example of the FBI Office of Professional Responsibility and Attorney General Jeff Sessions and bring an end to alleged Russia Collusion investigation manufactured by McCabe’s boss James Comey based upon a fraudulent and corrupt Dossier,” Dowd told the The Daily Beast in an email.

  5. BobInget on Sat, 17th Mar 2018 4:49 pm 

    With the exception of the President, EVERY
    character in this soap is a life-long Republican.

    Fasten seat belts for a rebellion within the GOP.

    Monday, America faces yet another crisis.

    https://www.huffingtonpost.com/entry/trumps-personal-lawyer-is-now-calling-for-firing-of-robert-mueller_us_5aad3eb8e4b05b2217ff1e28

  6. antaris on Sat, 17th Mar 2018 4:57 pm 

    Bob, we Canadians are selling a product. It is not the fault of the US that the product has a limited market. I am in favour of Alberta shutting off the oil tap to BC in the hope of waking up the idiots here. Protesters are out today trying to stop the KM expansion that would lesson the constraints of Canadian oil. Said protesters are not walking to site wearing non oil produced clothing but showing up 100% supported from their conception till this very moment by the availability of oil.

  7. Davy on Sat, 17th Mar 2018 5:26 pm 

    bob, have you ever heard the term “shit or get off the pot”?

  8. twocats on Sat, 17th Mar 2018 6:20 pm 

    You get an oil boom, we get an oil boom, everyone gets an oil boom!

    going back in the time machine over at energy skeptic makes for some positively hysterical reading.

    http://energyskeptic.com/2018/u-s-house-2013-exports-and-the-changing-global-energy-landscape/

    They predicted a 40% increase in gas production from 2013 levels. More than half way to 2020 and what do we have? 12.7% increase.

    https://www.eia.gov/dnav/ng/hist/n9050us2a.htm

    now coffeeguyzzzzz has been saying Utica is like 3 dodecazillion cubic feet, so I guess we’ll have to wait to 2020 and see? all the while building LNG terminals for export? yeah, why not.

  9. Davy on Sat, 17th Mar 2018 7:04 pm 

    bob, How much of a dumbass do you think I am on a scale of 1-10? 10 being extreme dumbassery.

  10. GregT on Sat, 17th Mar 2018 10:59 pm 

    “How much of a dumbass do you think I am on a scale of 1-10? 10 being extreme dumbassery.’

    Off the scale. Likely in the tens of thousands, probably in the millions.

  11. Cloggie on Sat, 17th Mar 2018 11:41 pm 

    “bob, How much of a dumbass do you think I am on a scale of 1-10? 10 being extreme dumbassery.”

    Now that you bring up the subject… where do you place yourself? I mean, I’m too diplomatic to fill you in.

    When did you begin to doubt yourself? Do you want to talk about it? Why don’t you lay down on Sigmund’s sofa here…

  12. GregT on Sat, 17th Mar 2018 11:57 pm 

    I’m sure that Bob doesn’t lie awake at night, wondering how extreme Davy’s dumbassery is.

    1 is dumb enough.

  13. GregT on Sun, 18th Mar 2018 12:05 am 

    “bob, have you ever heard the term “shit or get off the pot”?”

    Davy, have you ever heard the phrase “United we stand, divided we fall”?

    Dumbass.

  14. Davy on Sun, 18th Mar 2018 5:22 am 

    “bob, How much of a dumbass do you think I am on a scale of 1-10? 10 being extreme dumbassery.”

    Just for the record that was not me. Likely greggie playing his games. He is pretty upset lately.

  15. Davy on Sun, 18th Mar 2018 5:24 am 

    “Davy, have you ever heard the phrase “United we stand, divided we fall”?”

    Wow, greggie, mission accomplished. I have your complete attention. Slapped you good and now you are all tears.

Leave a Reply

Your email address will not be published. Required fields are marked *