Oil sector experiences shock

The decline in crude oil prices on the world market has gravely affected the country’s oil sector, which is likely to adversely affect production from the Tweneboah-Enyerra-Ntomme (TEN) fields and the Sankofa Fields, Seth Terkper, Minister of Finance, has disclosed.

Despite the low oil prices on the world market, the Finance Minister said government had pinned its hopes on the oil sector to propel Ghana’s economic growth in 2017.

Currently, a barrel of Brent crude oil on the world market is selling around $54.46 as WTI Crude oil was $51.68.

Oil production in Ghana’s first oil field, Jubilee was pegged at over 90,000 barrels per day.

Government expected so much from the sector but technical hitches have affected production.

Government has continued to borrow from domestic and local sources to enhance its operations.

Most monies borrowed are used to service debts but key sectors of the economy, including agriculture, have not improved significantly.

Lately, statistics churned out by the Central Bank revealed that the country’s total national debt recorded GH¢112 billion, representing 67.4 percent of gross domestic product (GDP).

At the maiden Ghana Broadcasting Corporation (GBC) and National Commission for Civic Education (NCCE) Presidential Debate in Accra, President John Mahama, stated that the economy was getting back on the path of growth, as a result of a sustainable home-grown policy that had been adopted by the government.

According to the President, the World Bank had projected a growth rate of between 7 and 8 percent in the next two to three years.

“We were faced with a very unbalanced economy and we have taken bold measures…All the macroeconomic indicators are pointing in the right direction,” he said, adding that growth would rise above 8 percent next year from a projected 4.1 percent this year.