The decline in crude oil production threatens the ability of the government to generate revenue to fund projects and initiatives such as education, the Public Interest and Accountability Committee (PIAC), the body set up to monitor the utilization of petroleum revenue in Ghana, has said.PIAC notes that the most immediate effect of the decline in oil production in Ghana is a reduction of revenue from oil and gas production.
Although petroleum revenue on average constitutes about 7% of total Government revenue, Ghana is reliant on petroleum revenue as a major driver of economic growth."In periods when crude prices are low and crude oil production consistently declines, this can lead to significant budget deficits from the revenue shortfall.
This will make it challenging for the Government to fund essential services such as healthcare, education, and infrastructure projects, which slows down overall economic growth and development," a member of PIAC, Mr Constantine K.M Kudzedi said at the opening of a consultative workshop to address the declining crude oil production in Ghana, in Accra on Wednesday, October 16.
He further 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.