The Public Interest and Accountability Committee Committee (PIAC), the body set up to monitor the utilisation of petroleum revenue, has suggested measures to deal with the decline in crude oil production in Ghana.To effectively address the decline in crude oil production, PIAC said, Ghana needs a multi-pronged strategy focused on economic diversification, sustainable exploitation of its petroleum resources, promotion of renewable energy, and development of local industries."Whilst building a resilient economy and embracing the global energy transition, cognisant of its development needs, Ghana must also ensure sustainability of its upstream oil and gas industry growth," a member of PIAC, Mr Constantine KM Kudzedi said at the opening of a consultative workshop to address the declining crude oil production in ghana, in Accra on Wednesday October 16.PIAC has stated that in 2019, Ghana witnessed its peak in crude oil production since inception, recording a volume of 71,439,585 barrels from the initial production of about 1.1 million barrels in 2010 through to about 62 million barrels in 2018.
This declined to 66,926,806 barrels in 2020, representing 6.3%, PIAC added.Mr Kudzedzi stated that crude oil production further declined to 55,050,391, 51,756,481, and 48,247,036.61 barrels in 2021, 2022 and 2023 respectively, representing 17.75%, 5.98% and 6.78% respectively.
The 2023 production figure represents the fourth consecutive year of decline in annual production volumes since 2010."Over the last four (4) years, the declining trend has sparked concerns about the future of Ghana's upstream petroleum industry, and that if the challenges on the producing Fields if any culminating in this decline are not addressed, with new fields being brought on board or investments are attracted, then the sustainability of Ghana's upstream petroleum industry will be adversely affected thereby jeopardizing the anticipated returns and appropriate share of the oil wealth to stake holders especially the state resource owner," he said.As an accountability watchdog over the management and use of the revenues arising out of crude oil production,he said the Public Interest and Accountability Committee reiterated its concern over the declining trend of crude oil production in its latest 2023 Annual Report on the management and use of petroleum revenues.Factors contributing to the declineMr Kudzedi cited Mature Oil Fields as one of them.Regarding Jubilee Field, he explained that Ghana's flagship Jubilee oil field, which started production in 2010, has been a key contributor to the country's oil output.
However, like many oil fields, Jubilee is experiencing natural production declines as it matures after 14 years.