Ghana becomes a producer of crude oil

Could the extraction of crude oil in Ghana be enough on its own to double their growth rate and provide a funding platform for enormous infrastructure spending? That is the optimistic hope of the government on the day that oil started to flow from an oil field that may have upwards of two billion barrels available.

Oil has the potential to provide new riches for a country that has won plaudits for improved governance and macroeconomic stability. The state plans to allocate some of the revenue from the oil to fund extra spending in education, health care, industry, and infrastructure. But there are many risks too - economic, environment, social and political. Especially if the new wealth from black gold in their oceans flows only to a small minority.

Nigeria and Angola are Africa’s largest oil producers - see this background article from Reuters

Here is a selection of news articles on the arrival of Ghana as an oil producer. Oil is an opportunity and a challenge.

BBC news video: Ghana became the world’s newest oil producer

FT Blog “Beyond the BRICs” Ghana turns on the oil tap

Reuters News: Ghana enters new oil era with Jubilee launch