PIAC report sounds alarm on falling oil production for three straight years
The recent release of the 2022 Public Interest and Accountability Committee (PIAC) Annual Report on crude oil production in Ghana has brought to light a concerning trend of declining production levels for three consecutive years. According to the report, crude oil production in the country dropped from 71,439,585 barrels in 2019 to 66,926,806 barrels in 2020, representing a decrease of 6.32%. This downward trend continued in 2021 with production levels further declining to 55,050,391 barrels, a significant 17.75% drop, and then to 51,756,481 barrels in 2022, representing a decrease of 5.98%.
This continuous decline in production levels is a worrisome trend for Ghana, which relies heavily on its petroleum resources to drive economic growth and development. The report emphasizes the need for Ghana to quickly implement measures to attract new investors and accelerate the sustainable development of its petroleum resources to reverse this decline. It also recommends the early completion of ongoing projects, which would be instrumental in achieving this goal.
The report’s findings are a cause for concern, especially as Ghana seeks to expand its oil and gas industry to drive economic growth and development. This comes at a time when the country is grappling with the adverse effects of the Covid-19 pandemic on its economy. The report’s recommendation for Ghana to speed up the sustainable development of its petroleum resources is thus critical, as the country seeks to diversify its economy and generate more revenue from its petroleum resources.
The methods employed by the PIAC in collecting, collating, reconciling, and analyzing production and revenue data from relevant stakeholder institutions were thorough and commendable. The analysis and reconciliation of data collected from relevant stakeholders, stakeholder engagements, interviews and validation meetings, and independent verification of reported documents from stakeholders are all necessary to ensure the accuracy and reliability of the report’s findings and recommendations.
It is now up to the government of Ghana to take the necessary steps to address the decline in petroleum production and ensure the sustainable development of its petroleum resources. This will require significant investment in infrastructure and regulatory frameworks that attract new investors and enable the completion of ongoing projects. Such measures will help to reverse the decline in production levels and ensure that Ghana maximizes the potential of its petroleum resources for economic growth and development.
The 2022 PIAC Annual Report highlights the need for Ghana to prioritize the sustainable development of its petroleum resources, as the country seeks to diversify its economy and generate more revenue from its petroleum resources. The report’s findings and recommendations are based on thorough data collection and analysis, and it is now up to the government of Ghana to take the necessary steps to address the decline in petroleum production and ensure the sustainable development of its petroleum resources.
