Mr. Constantine KM Kudzedi, a member of the Public Interest and Accountability Committee (PIAC), has urged the country to balance its pursuit of economic growth with the global shift towards renewable energy, while simultaneously safeguarding the sustainability of its vital upstream oil and gas industry.
Although the global energy transition is picking up speed, Mr. Kudzedi remains adamant that Ghana must take a measured approach to ensure the nation’s economic stability. His concern stems from the decline in oil production, which has been a key driver of the economy for years.
Mr. Kudzedi insists that while embracing renewables is important, the oil and gas sector should not be neglected, as it continues to provide substantial revenue and employment. Balancing these competing priorities, he argues, is crucial for Ghana’s future development.
During the opening of a consultative workshop held in Accra , He stated, “Whilst building a resilient economy and embracing the global energy transition, cognizant of its development needs, Ghana must also ensure the sustainability of its upstream oil and gas industry growth.”
In 2019, Ghana reached its highest crude oil production volume, recording an impressive 71,439,585 barrels—a significant leap from the initial production of 1.1 million barrels in 2010 and the 62 million barrels recorded in 2018, according to PIAC. However, production began to decline in subsequent years, dropping to 66,926,806 barrels in 2020, a 6.3% reduction.
Crude oil production further declined to 55,050,391 barrels in 2021, 51,756,481 barrels in 2022, and 48,247,036.61 barrels in 2023. These figures represent annual reductions of 17.75%, 5.98%, and 6.78%, respectively. The 2023 output marks the fourth consecutive year of declining oil production since the peak in 2019.
“This continuous decline over the last four years has raised serious concerns about the sustainability of Ghana’s upstream petroleum sector,” Mr. Kudzedi warned.
Speaking on the factors contributing to the decline in crude oil production, Mr. Kudzedi cited several key reasons, including the natural decline of mature oil fields, underinvestment in exploration and production, and operational and technical challenges.
He argued that the aging of major fields like Jubilee, which peaked in the first nine years of production, has led to a natural decline in output, a trend seen in other key fields like TEN and Sankofa Gye-Nyame. Additionally, there has been limited exploration activity in recent years due to a combination of underinvestment by both the government and international oil companies (IOCs) and the global shift towards renewable energy, which has reduced focus on fossil fuels. Operationally, technical issues such as equipment malfunctions and delayed maintenance have also slowed production, while infrastructure shortcomings, particularly in processing, transport, and storage, have further compounded the problem.
These challenges, PIAC stressed, if left unaddressed, threaten the long-term sustainability of Ghana’s oil and gas industry.
