Academia-industry collaboration needed to counter oil decline

By Kizito CUDJOE

Dean-Faculty of Mechanical and Chemical Engineering, Kwame Nkrumah University of Science and Technology (KNUST), Prof. Francis Kemausuor has called for stronger collaboration between academic research institutions and the oil and gas sector to address the country’s declining oil and gas production.

Ghana has witnessed a worrying drop in crude oil production, falling from 71.44 million barrels in 2019 to 48.25 million barrels in 2023. This represents an annual average decline rate of 9.2 percent over the past four years and a 7 percent decrease from the 2022 figure of 51.7 million barrels.

Speaking at the opening session of a two-day ‘Technical Consultative Workshop’ in Accra, focused on Ghana’s declining oil production, Prof. Kemausuor attributed this ongoing decline partly to absence of a robust local research and development (R&D) framework – warning that without academic engagement the sector remains reactive rather than proactive.

“For too long, the country’s oil and gas sector has operated without a robust local research and development programme. This gap may also have contributed to the challenges we are facing today,” Prof. Kemausuor.

He emphasised the complementary roles of academia and industry; noting that while industry provides practical experience, academia offers long-term problem-solving capabilities. “Operating an oil and gas field without the support of academic research is akin to navigating without a map,” he added.

He also stressed that many of the country’s universities are home to experienced researchers and post-graduate programmes capable of supporting the energy sector, but these resources remain underutilised.

“What we need is the will and trust to engage with academic research,” he said, urging both private companies and government bodies to make conscious efforts at integrating academia into industry practices.

The Dean-Faculty of Mechanical and Chemical Engineering, KNUST, also highlighted the importance of adopting transparent proposal evaluations and merit-based funding processes to ensure that research projects yield impactful results. “Our investments have filled us with experienced researchers and valuable laboratory resources, but these are underutilised in addressing the challenges we face,” he stated.

He therefore stressed that engaging academic research will not only help solve production challenges but also ensure the sustainability of the oil and gas industry. “By integrating academic research into industry, we can better anticipate challenges, develop innovative solutions and ensure a more resilient future for our industry,” he urged.

The Technical Consultative Workshop was organised by the Public Interest and Accountability Committee (PIAC) in collaboration with its partners – KNUST, Ministry of Energy (MoEn), Ghana National Petroleum Corporation (GNPC), Petroleum Commission (PC) and Ghana National Gas Limited Company (GNGLC).

The event brought together technical experts, policymakers, key stakeholders, academia and industry players to discuss the declining trend of crude oil production and explore options aimed at identifying solutions to address the decline.

A member of PIAC, Mr. Constantine Kudzedi, delivering the keynote address also outlined potential economic consequences of the production decline.

“Although petroleum revenue constitutes only about 7 percent of total government revenue, Ghana relies heavily on it to drive economic growth,” Mr. Kudzedi explained.

Lower production, combined with periods of low oil prices, he said, could lead to budget deficits and jeopardise funding for essential services like healthcare, education and infrastructure projects?

He particularly noted that the impact on employment is also a major concern. “The upstream oil sector provides substantial employment. If production declines continue, companies may fold up – resulting in layoffs not just in the oil sector but also in related industries like transportation, manufacturing and services,” Mr. Kudzedi warned.

Mr. Kudzedi further noted that declining production could deter foreign and domestic investments. With two-thirds of Ghana’s petroleum contract areas yet to lead to commercial discoveries, investor confidence is waning. “Investors see Ghana as a high-risk landscape due to consistent production decline and global shifts toward renewable energy,” he added.

This has heightened fears of stranded assets, as existing infrastructure and reserves may no longer generate returns amid the accelerating global energy transition.

Given these developments, he stressed the need for a multi-pronged strategy to address these challenges.

Also, he said: “The global energy transition demands that Ghana leverage its remaining oil resources before it’s too late,” emphasising that stakeholders must act swiftly to halt the decline.

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