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, descriptive- 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).