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Exxon Buys Kosmos' Ghana Oil Field Stakes

Comment: don't expect huge riches

2009-10-06 16:22:13
Comment to:
Exxon Buys Kosmos' Ghana Oil Field Stakes

Ghana won't become Saudi Arabia or Kuwait because of this. The oil off Ghana is not easy to access and is expensive to produce. Saudi Arabia and Kuwait can produce their high-quality oil at $5 a barrel. They are currently selling oil at $70. That's $65 profit per barrel.

Ghana's oil might cost upwards of $40-$50 to produce a barrel of lower quality oil making it more expensive to refine as well.
The oil companies believe they can make a profit, which is why they are there, however I don't forsee massive profits for either they or Ghana, just a steady dribble.

On the one hand oil could go up to $120 a barrel which would have a nice impact; on the other hand with oil exploration now going on in all four corners of the globe and with better production technologies, there could be a lot of new discoveries elsewhere which could result in a glut of oil and hence lower prices.

I just don't see Ghana swimming in money because of this. Which may be a good thing. Nigeria, Angola, Equatorial Guinea, anyone?

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10-06 14:58
don't expect huge riches
10-06 16:22