Ghana's President Urges Global Firms to Expedite Crude Oil Production Amid Renewable Energy Transition

Strategic Insights -

Ghanaian President John Mahama has cautioned global firms to accelerate crude oil production in the West African nation, warning that a delay could render the resource worthless as the world shifts towards renewable energy. Mahama made this statement at the Africa CEO Forum in Abidjan, Ivory Coast, emphasizing the need for rapid drilling and pumping to capitalize on existing demand. The warning comes as several countries commit to reducing their oil and gas consumption to meet carbon emission targets, driving a transition towards cleaner energy sources. Ghana's oil sector has experienced a decline in output, with crude oil production dropping from 71.44 million barrels in 2019 to 48.25 million in 2023 due to reduced investments in new wells.

Key Takeaways:

  • Ghana's President John Mahama has urged global firms to expedite crude oil production in the country to capitalize on existing demand before the global shift to renewable energy renders the resource worthless.
  • Mahama accuses the previous government of stalling oil exploration through regulatory bottlenecks and disputes with key investors, including British-based company Tullow and ENI of Italy.
  • Ghana's petroleum sector has seen a steady decline in output, with crude oil production dropping from 71.44 million barrels in 2019 to 48.25 million in 2023.
  • The decline is attributed to reduced investment in new wells, with the Public Interest and Accountability Committee (PIAC) citing a "lot of disinvestment" in the sector.
  • Mahama has vowed to provide support to oil exploration efforts, stating that he will "lay a red carpet" to companies willing to drill and pump oil.
  • Ghana's previous government, led by Nana Akufo-Addo, had "squabbles" with Tullow, a key investor, contributing to the decline in investment.

The Africa CEO Forum is not explicitly referenced in the given text.

| AFP