The announcement this month that Crude Oil (a.k.a. "the black gold) has been discovered in large commercial quantities off Ghana's Atlantic Coast has been greeted with joy among many in Ghana and abroad. The Kufuor government has been gloating that the solution to "almost" all of Ghana's social and economic problems is at hand. President Kufuor himself was quoted as saying that he feels very happy that oil was discovered on his watch and that will make him leave a solid economic legacy before he leaves office. All this jubilation is in order. After many years of having our economy and economic plans disrupted and thrown out of the window by unpredictably high prices of crude oil (which we import in large quantities), having the opportunity to produce our own oil should surely be news for celebrations.
In the midst of all the jubilation and high hopes and expectations, The Ghanaian News wants to sound a very serious note of caution. It is true that the oil industry can bring a lot of economic benefits, but around the world, oil has proved to be a very dangerous double-edged dagger. It has been responsible for massive infrastructural development of many oil-producing countries. But its production and the wealth that it brings have also been the source of many social, economic, and political disasters in nearly every country around the world where crude oil is produced.
The Middle East (Arab) oil-producing countries account for nearly sixty per cent of the total global oil production. The "black gold" has pumped uncountable billions of hard cash into the coffers of these countries. We can all pause to ask ourselves what positive things many of these countries have to show for the massive wealth. Around the Arab oil- producing world, one can see glittering landscapes of buildings with obscene architecture. Many of these countries are littered with massive palaces for their ruling and business classes. In the process, complacency and laziness have set in. The training of their local citizens in technology and other skills have been relegated to the background. Many of these oil producing countries have relied heavily on foreign labour and skills in every sphere of life. The result has been over-dependency on everything foreign. It is the presence of oil and the greed to control its wealth that has brought Iraq to where it is today.
Next door in Nigeria, the oil wealth has brought more harm than good. The oil wealth of the country has not had any positive impact on the lives of the ordinary people. The oil production has created serious environmental disaster, social and economic dislocation in the areas (the Delta Belt) of the country where the oil is drilled. Is it not a shame and worrisome that Nigerians have to queue for gasoline everyday when a large portion of the world's total oil output is from Nigeria. The oil wealth in Nigeria has created more thieves and corruption out of the ruling elite and business classes in Nigeria. In the early 1980s when the oil money was flowing, Nigeria resorted to massive importation of every consumer item they could think off instead of developing the local production base. The result twenty years later is there for all to see.
Ghana's oil is expected to be pumped up from the next five years or so. We therefore need to learn from the serious mistakes of all these present oil-producing countries and put our house in order before the "oil-money" starts flowing. This is the time to embark on serious skills-training of personnel for the oil sector if we are to avoid massive importation of oil workers like our compatriots did with very serious consequences. This is the time to plug the holes that breed corruption in oil-producing economies. This is the time to think about the possible environmental effects of oil production and plan towards their solutions. This is the time to take seriously the old adage that all that glitters is not gold. The oil find in Ghana can benefit us if we learn from the mistakes and experiences of those that have been there and we have Nigeria next door to learn from.
