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Opinions of Tuesday, 1 February 2011

Columnist: Adade, David

The Oil Rush or the Oil Curse?

David Adade, Brampton, Canada

As Ghana has struck it usurping blow onto the vast African terrains, which have yielded both the riches of cocoa and gold, they have now obtained a vital resource towards economic prosperity; oil is what will supplement this wealth and transition them into the new world. The benefits of oil are not without its share of consequence. Indeed, it is oil that will usher the country beyond its financial limitations and make its reputation more notable amongst the global market however it was the acquiring of oil that also made Nigeria fall into its anti-climax. This raises the fear of risking their creditability all for the profits they would gain. As seen in other countries, the influence of political and industrial corruption is apparent. Society has witnessed that once Nigeria had begun pumping its two million barrels per day from oil reservoirs, the country, to say the least, observed the perpetuating decline of this African empire. The anticipation of Ghana’s oil production has now come to an end and soon they will begin their mass production on oil offshore of the jubilee field. They are said to begin pumping 55,000 barrels per day and within the next six months 120,000. The offshore jubilee fields is said to hold approximately 1.5 billion barrels of oil and is expected to bring in a profit of 1billion within a few years of production, annually. It is even said that Ghana’s economy rate will go from 5% to 12% within the next year, which will undoubtedly provide more jobs for its people.

“It is ill-advised to even consider Ghana’s estate falling into the same situation like the other African countries that hold oil because Ghana won’t need to rely completely on oil for reasons of different exporting revenues,” says Alice Adade, a first generation Ghanaian within Canada. Economic statistics refer to the oil revenue of Ghana only being 6% of their overall profit while in other countries like Nigeria and Angola, it ranges between 90-100%; compromising the fear that Ghana will rely only on the oil surplus. Various others have concluded that this discovery is indeed a blessing and not an attempt to cripple the nation. The suspicions about the underlining conflicts are still relevant and the inevitable plots of insurgencies can still be detained if the government is able to control the matter at hand. All the country can do, is but wait and observe what possibilities could arise from this oil rush or oil curse.

Source: David Adade, Brampton, Canada