The Socio-Economic Impact of Oil and Gas Discovery in the Ellembelle District of Ghana

Abstract

Oil discovery in developing nations is usually met with celebrations and excitement but is later turned into disappointment. This study investigated the socio-economic impact of the oil and gas discovery in Ghana on both Atuabo and Sanzule in the Ellembelle District. The objectives of the study were to explore the changes in the two communities after the oil and gas discovery, to examine how oil and gas discovery has changed family lives, opportunity for work, education and finally to examine how the citizens of these communities are reorganizing their lives after the changes. The research method adopted for the study was the mixed method. Using the multistage, stratified and purposive sampling methods, 230 household questionnaires were administered to household heads or their representatives to collect data for the study. There were also Focus Group Discussions and interviews with key informants. The results showed that there have been both positive and negative changes in both Atuabo and Sanzule as a result of the oil and gas discovery. The positive changes were improvement in road networks, installation of internet services and telecommunication networks. Generally, the negatives outweighed the positives. The results showed that the discovery of oil and gas and their related activities has not led to improving the livelihoods of the rural communities of both Atuabo and Sanzule. Rather, the discovery of oil and gas has brought livelihood difficulties on the rural communities of both Atuabo and Sanzule. Respondents revealed that they have negatively been affected by the oil and gas finds through loss of lands but poor compensation, drastic reduction in fish harvest, high breed of mosquitoes, hot weather, economic hardship and increment in the prices of goods and services.