The Effects Of Offshore Oil And Gas Operations On The Socioeconomic Life Of Ghanaians: A Case Of The People Of Ellembelle District In The Western Region Of Ghana

ABSTRACT

The oil and gas discovery and production in Ghana has given the country a new status

which has invigorated the scholarly debate on the effects of oil and gas discovery on the

socio-economic development of the citizenry. The discovery, and its subsequent

production, at Ghana’s Jubilee fields was met with high expectations by the Ghanaian

citizenry, especially those within the catchment areas, as far as enjoying quality job

opportunities, socio-economic development in infrastructure, improvement in education

and health was concerned. Ghana became part of the oil and gas discovery and production

nations when she discovered commercially large quantities of oil around the Cape Three

Points Area. While the discovery and production of the oil and gas is envisaged to have

positive effects on the socio-economic life of the citizenry, its negative effects should not

be underestimated. This study aimed at critically examining the effects of the oil and gas

discovery and production on the socio-economic lives of the people within the Ellembelle

District in the Western Region of Ghana. The study also aimed at identifying the role of

the government, oil firms and other stakeholders in solving the negative effects of the oil

and gas operations on the people within the catchment area.

To digest these issues comprehensively, the study used the Resource Curse Theory, which

describes the relationship between oil discovery and economic growth and the impact of

oil and gas on national development (Auty, 1993). The Social Action Theory was also

used to explain the reaction of human beings in a social context and how their actions and

inactions affect their lives (Weber, 1991).

In addition, the researcher used the qualitative research approach, employed focus group

discussions and in-depth interviews to collect data for the study. Afterwards, descriptiveix

narrative method was used to analyze responses recorded on audiotapes from the field.

The researcher used the descriptive case study under the qualitative method to explain the

effects of the offshore oil and gas operations on the socio-economic development of the

people within the catchment area.

The study concluded that the offshore oil and gas discovered and produced in Ghana has

double-edged effects. The study also revealed that while a segment of the communities in

the catchment area is benefiting from the oil and gas exploration in various degrees

through corporate social responsibility and capital investment, others such as farmers,

fishermen and traders have lost their most important capital without adequate

compensation. The study revealed that pollution, migration, high cost of living and the

breakdown of cultural values were the negative social effects of the oil and gas operations

in the Ellembelle District. On the other hand, positive social effects such as infrastructural

developments, provision of social amenities and tourist attraction that brings revenue to

the local communities were revealed. The study again revealed mainly negative economic

effects of the oil and gas operations in the Ellembelle District such as high unemployment

rate, the breakdown of local businesses and land litigation. The researcher, therefore,

recommended that in order to solve or reduce the issue of unemployment that emanates

from loss of lands, the Ellembelle District Assembly in collaboration with relevant

stakeholders, traditional authorities and Non-Governmental Organizations (NGOs) must

initiate several alternative livelihood programmes from which the affected inhabitants can

survive on, as this would help salvage the issue of unemployment in the Project Affected

Communities (PACs).