Commensurably on the global scene, Ghana is a new entrant in the club of oil and gas producing countries. Our industry is now emerging from the doldrums when the notion was that our sedimentary basins were dangerous geologically to invest and that it did not hold any promise. And after Jubilee some have asked what’s next?The recent discoveries and producing fields have negated those axioms. And there are still yet to find resources in our sedimentary basins indicating that the future of the hydrocarbon industry in Ghana is still bright!
Various estimates have been made as to remaining resources and this keep changing as the years pass by.So what is the point? Is there a peak oil really?
This picture is based on Esson Mobil’s revisions from 2002. if this is a true reflection of future discovery,Then the future really looks bleak. But just look at the next slide
This is the global picture of oil production to 2100 the resource based production forecast. By describing oil as a fossil fuel, everyone admits that it was formed in the past, which means that we started running out when we consumed the first barrel. That much can surely be agreed, even if opinions differ about how far along the depletion curve we are. The global trend shows that we are at the peak production. Despite this assertion, Many new discoveries continue to be unearthed. It could also be indicated that, the West African Gulf of Guinea is a virgin area in terms of exploration and that with improved exploration technology and data, new discoveries holds sway. This is so because the Gulf of Guinea has not seen the aggressive exploration in terms of drilling that has occurred in other parts of the world and this is attested to by the recent activities unearthing discoveries. Global deepwater oil production forecast indicates Africa, in general, as producing a larger percentage of oil. The graph shows a comparison of the world production of deepwater oil and the contribution from Africa. Certainly, Africa is the destination for future investment opportunities especially, GHANA!!
I agree with John Mitchel, who said that Peak oil is a misleading idea!!.The potential for future oil production depends on resources being converted into reserves by the application of technology, economics and investment.
These are but a few of the discoveries made in just 2011.The implication is that the potential for future discoveries are there and hence the idea of peak oil is indeed misleading.
The story has now began. These recent discoveries which are all at various stages of appraisal and development.
Inland Voltaian Basin – 103,600sqkm after Phase I of the initial reconnaissance study.At the moment, an aggressive exploration activity in the Voltaian Basin is underwayTo unearth the potential of this basin. This is being done in phases. The initial Phase IIs expected to be completed early next year and investors will then be invited to partake in the Exploration activities. Farm-in/ Joint venture partnerships still existValue addition to hydrocarbon resources especially in the downstream sector – Production Of Fertilizer, Methanol, petrochemicals etc
Meeting the energy demand of Ghana is a challenge. Increasing energy demand puts pressure on the Upstream industry to produce moreOil & gas needed in thermal Power generators as reliance on hydro is becoming more and more insufficient.
The ramification of this will translate into the economy here in Ghana.
Uncertain reservoir upstream operators have largely implemented production optimization processes in an isolated and independent manner at different levels of the production process. For example, production is optimized at the business level by focusing on maximizing recovery and net present value of the asset or reservoir. Or a producer may focus on the installed or operational levels of the production chain by optimizing specific wells, gathering networks, or surface facilities. Each of these efforts can improve production, but it isn’t until these divided processes are fully integrated that operators will realize the true value of production optimization.
The industry has just began in Ghana. Emissions of carbon dioxide management Managing properly the environment may seem to be in order. Maintenance and drills may be in order So that in the event of any such disaster, we will not be taken unawares.Certainly managing offshore hazards should be a team responsibility.
This is a global statistics but reflects well on the condition in Ghana as well.Improved methods of exploration, such as directional drilling, completion engineering, and purification technologies have all dramatically improved, thereby intensifying the need for highly qualified technical specialists.
Direct Employee costs are the costs related to identifying, hiring, training, and retaining qualified employees and include the following:1. Hiring and replacement costs 2.Training and lost productivity costs 3.Compensation; including the cost of: - Salary increases - Annual and long–term bonus increases
The petroleum industry lost almost half a million jobs between 1982 and 2000 (API 2004 survey). The cyclical nature of the industry contributed to increased layoffs while hiring has been at an all time low since the early 1990s. Currently, the average age of an experienced employee in a management or technical position (e.g. petroleum engineer) is approximately 48 to 50 years. The Average Age of a Technical Employee is 48-50 Years As evident in the graph, the impact of workforce reductions is not being addressed from the strategic viewpoint of long-term succession planning. The current domestic workforce composition reveals that the majority of employees are Baby Boomers. The Oil & Gas Industry on the edge of a demographic Cliff.
The high salary levels makes it difficult to employ and pay such highly qualified professionals for the industry.
1. The potential of the oil & gas business in Ghana has just began. There is still yet to be found resources both in the inland Voltaian Basin, and the offshore deepwater sedimentary basins.2. Peak oil is a misleading idea. The potential for future oil production depends on the application of technology, economics and sound investment practices3. The long term Impact of the workforce crisis should be addressed by all interested parties in the oil & gas industry to prevent damage in the form of market corrections and diminished domestic energy security.
Samuel Oben Djan, Lead Geoscientist at GNPC - Upstream challenges & opportunities
Upstream Opportunities & ChallengesGhana in a global context, the future & thechallenges of the oil and gas industryS. Obeng-DjanLead Geoscientist