Oil and Gas Exploration in Ghana

MP for Obuasi West, Member of Parliament, Kweku Kwarteng, said in 2016 that Ghana’s economy was unaffected by the drop in oil prices.

He said: “The suggestion that when oil prices go down it hurts our economy is disingenuous. Ghana is a net oil importer. And what’s happened is that every time oil prices fall, the analysis has been what we’ve lost on the export side; no one tells us what we earn on the import side. For a country that imports crude, I think we should drop this suggestion [that a] decline in crude oil prices on the international market is hurting our economy.

Revealing the plans of a future New Patriotic Party (NPP) government for the financial management of the economy, he said: “Overall, we think oil money is just money. . If the general financial management of the economy is plagued with corruption and bad spending, you’re never going to have a culture where people say, “Well, when it comes to other funds, we can manage them badly, but for the oil money, we have to manage it well.’

Read the full story originally published on February 14, 2016 by Classfm

MP for Obuasi West, Kweku Kwarteng has said claims that Ghana’s economy is being negatively affected by declines in global oil prices are not sincere.

He said the country, being a net importer of oil, cannot claim to lose revenue due to the fall in the price of crude in the world market.

The MP made the remarks during an oil and gas forum in Accra for political parties organized by Penplusbytes, a local non-governmental organization, on Friday, February 12, 2016.

He said: “The suggestion that when oil prices go down it hurts our economy is disingenuous. Ghana is a net oil importer. And what’s happened is that every time oil prices fall, the analysis has been what we’ve lost on the export side; no one tells us what we earn on the import side. For a country that imports crude, I think we should drop this suggestion [that a] decline in crude oil prices on the international market is hurting our economy.

“We believe that in the future we need to analyze the taxes we impose on oil to get more money to compensate for what we are losing on our exports…so that the impression is not created that ‘one way or another our economy is hurt.”

Revealing the plans of a future New Patriotic Party (NPP) government for the financial management of the economy in the face of falling oil prices on the world market, the lawmaker said the focus would be on tackling government corruption and reckless spending.

“Globally, we think oil money is just money. If the general financial management of the economy is plagued with corruption and bad spending, you’re never going to have a culture where people say, “Well, when it comes to other funds, we can manage them badly, but for the oil money, we have to manage it well.’

“So we think the real answer is to reduce waste and corruption and improve the general management of the economy, so that the oil money can flow into that culture. That’s the position that a NPP government will continue,” Kwarteng revealed.

The views of the NPP were supported by the People’s National Convention (PNC).

Its youth organizer Atik Mohammed said “a fall in crude prices should not be a reason for the country to come to a standstill”. He said that the fall in oil prices on the world market, for a country that imports more product than it exports, would result in a reduction in the amount of money the state spends to import oil. oil, so the state would not be worse off. .

The PNC has suggested passing a fiscal responsibility law to control overspending, including the enforcement of a ceiling on government borrowing, which it says has led to over-indebtedness.