PROTECTING OUR OIL REVENUE (MAY 23, 2009)

THE exploration of oil and gas in many countries has not been very beneficial to the citizens of those countries. Oil power has attracted migrants of all kinds of skills and race to oil-rich countries on the continent, particularly Nigeria, Libya, Equatorial Guinea and Angola.
Oil revenue in some of these countries have been put to good use, thereby improving the well-being of the people. In other countries, the exploration of oil and gas has been a curse rather than a blessing.
Since Ghana discovered oil in commercial quantities in 2007, the country has become the attraction of investors from far and near. Today the Western Region is the most important investment destination in Ghana, although that region has, over the years, produced the bulk of our exports.
When we discovered oil in commercial quantities last year, many friends of the country cautioned Ghana to try and avoid the pitfalls that have bedevilled some oil rich countries on the continent.
Our governments have since put in place the necessary framework to maximise oil revenue for the good of the country. Some of the suggestions are the setting up of an independent authority to manage the oil revenue, security arrangements to protect the oil fields and safety nets to protect vulnerable groups in the drilling communities.
President J.E.A. Mills yesterday outlined some of the measures that would be put in place to protect the country’s oil resources to include the acquisition of two naval vessels to check negative practices that would undermine the country’s oil and gas endowment.
At an oil and gas forum organised by Zenith Bank Ghana, in collaboration with Vintage Visions in Accra, the President said, “Ghana’s new-found wealth cannot be handled whimsically.”
Apart from the exploration of oil and gas, there will be other offshore business opportunities that can be harnessed to enhance the well-being of the people.
If harnessed properly, the oil and gas in the country will end Ghana’s over-reliance on donors to balance its budget. And that is why the necessary structures should be put in place to avoid the siphoning of oil revenue for personal gain.
It is an undeniable fact that the oil business is characterised by corrupt practices and it is necessary for all Ghanaians to be vigilant so that the benefits from this God-given gift will help to take us on the path of economic challenges.
The DAILY GRAPHIC draws attention to major environmental challenges that are likely to hit the Tano Basin and other areas where oil and gas will be explored in commercial quantities. The regulatory bodies in the country should not shirk their responsibilities in ensuring that all companies exploring oil and gas abide by environmental regulations.
We call on the government to also resist the temptation of abandoning other sectors of the economy in the belief that oil will rake in a lot of revenue for development and suggest that oil exploration should complement other sectors such as cocoa production, gold mining and tourism that this country has relied on to develop since the colonial era.
It is the hope of the DAILY GRAPHIC that we will guard jealously our oil revenue, just as we have protected our fledgling democracy since 1992, so that Ghana will also be a shining example in the exploration of oil and gas on the continent.
For us, the exploration of oil and gas can be only a blessing and help to take the country out of its present economic challenges.