GHANA‘S OIL DISCOVERY: PROSPECTS AND CHALLENGES FOR NATIONAL DEVELOPMENT AND DIPLOMATIC RELATIONS

ABSTRACT

Oil‘s importance in the global economy cannot be overlooked. Gas, diesel and petrol, which are by-products of oil, fuel transportation and industrialisation globally. Due to these and many other advantages associated with oil, its discovery in many parts of the world has come with a lot of hope and expectations. However, other countries that discovered oil especially, African countries, have plunged themselves into economic doldrums and diverse diplomatic rows. This state of mixed blessings suggest that oil and gas discovery has implications on Ghana‘s economic development and diplomatic relations. This study therefore assessed the impacts of Ghana‘s oil and gas industry on Ghana‘s national economic development and diplomatic relations. The study is based on interviews with oil and gas institutions, senior oil company staff, government officials, staff of international companies as well as secondary sources. Qualitative methods were employed to collect the data while case study research design was used. The study also adopted Purposive and Snowball Sampling methods to select the participants while content analysis was used to analyse the data. The study revealed that the future of oil and gas in Ghana is extremely hard to forecast. On the one hand the government tries to show good will in implementing useful measures to control the oil industry. On the other hand, there is much insecurity, since there seems to be an atmosphere of secrecy surrounding contracts and contract processes as well fiscal indiscipline. The study therefore recommends that the government should ensure a broad-based political commitment to fiscal discipline by strengthening the institutions that regulate the activities of the oil and gas industry.