Ghana petroleum revenue sees 82.4% increase. In 2022, the West African nation earned $1.43 billion during the past year, which is the highest single year earning since it began production.
The increase came about despite a third-year consecutive drop in petroleum production. It has been producing less and less crude oil since 2019, when it produced 71.4 million barrels. In 2022, it only produced 51.8 million barrels.
Ghanaâs petroleum earning from 2022 came from Carried Participating Interest ($733.8 million), Corporate Income Tax ($388.9 million), Income on Petroleum Holding Fund ($2.4 million), and Surface Rental ($687,759. Meanwhile, the Surface Rental arrears continue to grow and have risen from $2.58 million in 2021 to $2.77 million in 2022. A large chunk of this debt (65%) is owed by four contractors that have seen their agreements terminated since 2021.
According to Staista, Ghana had a GDP of 72.84 billion in 2022 and oil contributed 1% to it. This data is significant because the contribution the previous year was slightly slower and pegged at about 0.9%. Compared to Nigeria, another oil producing nation in its region, which owed over 6% of its GDP in 2022 to its oil sector, Ghana is not heavily dependent on oil. Although, it could be soon if the growth trend continues.
Also, it was just in 2011 that the countryâs economy began seeing inflow of capital from oil and gas production. With 12 years into the game, and while production appears to have slowed, its earning is still trending upward.
Is Ghana Petroleum a Blessing or a Curse?
Oil, like every other commodity, is subject to fluctuations in prices. Its importance in international trade makes it susceptible to changes when major events are occurring. For example, the price dropped in 2014 after Europe and China began demanding less oil while supply from the OPEC consortium remained steady. Meanwhile, the start of the Russia and Ukraine war of 2022 led to the rise of global oil.
Clearly, the fluctuations mean that it is not a reliable source of revenue for a country that wants to keep improving its economy. However, as Nigeriaâs example has shown, reliance on oil could lead to false security and a shocking reality check could be around the corner when a new market shift happens.
Looking at the rate of Ghanaâs other sectors, like agriculture for example, it will do well to keep improving it as it builds its oil sector as well. Agriculture contributes about a fifth of Ghanaâs GDP, at least as of 2021, so, it makes sense that the industry receives attention as well.
