The International Monetary Fund (IMF) estimates that the Jubilee Field will generate about US$1 billion revenue a year for the next twenty years (cited in Gyimah-Boadi and Prempeh, 2012) or a cumulative of US$20 billion over the period of 2012-30 (Gary, 2009). Asafu-Adjaye (2010) indicated that production from the Jubilee Field could increase the GDP growth rate by 3.5 percent per annum but oil production per se will not have a huge impact on the economy under a business-as-usual scenario. Asafu-Adjaye (2010) concludes that oil and gas production will increase household disposable income but will this will imply a faster growth in domestic prices. The Friedrich-Ebert-Stiftung in Ghana in collaboration with You-net conducted a
quantitative survey across the ten (10) Regions of Ghana (Plänitz and Kuzu, 2015) and found out that, since oil and gas production started, prices have continued to increase for most basic
commodities everywhere in Ghana. However, expectations of massive employment opportunities in the oil and gas sector has not been realized. In spite of the socio-economic benefits of the oil and gas sector, oil and gas exploration and production are also associated with adverse impacts as have been outlined below.
There is a general saying which is supported by Schubert (2006) that oil and gas discovery can be a blessing or a curse because of the positive and negative impacts that oil and gas exploration and production activities can bring. Empirical evidence shown by van der Ploeg (2011) suggests that either outcome is possible. Gyampo (undated) predicts that Ghana‟s oil find could be a curse in the absence of good governance. Globally, there are good examples of cases where oil and gas find has become a blessing or a curse for producing countries like the case of Norway and the Niger Delta in Nigeria respectively (Kumah-Abiwu et al., 2015). The discovery of oil and gas could possibly multiply government revenue. If managed well, oil and gas revenue could bring significant earnings into a country (Okuthe, 2015). In spite of oil and gas benefits, exploration
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and production involve several activities that can have adverse impact on the environment (Sakyi
et al., 2012). Oil and gas production and related activities are known to affect the health of
community members who reside close to production sites (INSPQ, 2015; Darkwah, Undated). Influx of oil and gas expatriates and other migrants to exploration and production areas cause health hazards through the introduction of new diseases (Oluduro and Durojaye, 2013). Explosions from oil and gas pipelines are also known to cause injuries and deaths in local communities14. Oil and gas operations can also have significant effects on living marine resources including commercially important fish stocks (ITOPF, 2011). There is the need therefore, to ensure best practices in the development of oil and gas resources and reduce potential socio-economic, environmental and marine fisheries conflicts.
5.3.1 Socio-economic impacts of the oil and gas industry in Ghana
It is acknowledged that oil and gas activities can have both positive and negative social impacts but in terms of fisheries and oil and gas conflicts, focus on negative impacts which are drivers of the conflicts between the two sectors is critical. Currently, oil and gas production activities are concentrated in western Ghana with exploration activities in other parts of the country still in progress making coastal communities and people in the Western Region the most and directly affected by the negative impacts of oil and gas field operations. Ghana‟s Western Region is going through massive economic transformation and change in terms of physical infrastructure development for the oil boom which is having significant social and environmental impacts, and impacts on fisheries and coastal communities. The oil and gas companies operate from the Takoradi metropolis, the political, administrative and commercial capital of the Western Region, and also a fishing hub in the Region. Old and abandoned industrial facilities and housing units in
14
http://insideenergy.org/2017/05/25/back-to-back-oil-gas-explosions-rattle-colorado- communities/
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the metropolis are being refurbished to accommodate the development of oil and gas. The airport and the harbour in Takoradi have never been as busy and congested as they are today because of patronage by oil and gas operators.
Findings from the quantitative survey conducted by Plänitz and Kuzu (2015) on oil and gas production and the transformation of livelihoods of communities in all 10 Regions of Ghana are summarized as follows. The study showed that the Sekondi-Takoradi metropolis in the Western Region of Ghana has recorded population rise since oil and gas production started in 2010. As a result of population rise, housing costs as well as the cost of living have also increased in recent times. There was 139.1% increase in the price of water in the Western Region between 2009 and 2013. Direct observation in coastal communities in the Western Region indicates that farmlands are currently being used for the siting of onshore oil and gas facilities leading to loss of farming opportunity. Also, direct observation in the Takoradi metropolis reveals that a lot of women engage in prostitution which has the potential to increase the occurrence of sexually transmitted diseases such as HIV/AIDS.
5.3.2 Potential environmental impacts of oil and gas production activities
To identify drivers of marine fisheries and offshore oil and gas conflicts, there is need to discuss the potential negative impacts of oil and gas operations on the marine and coastal environment. Oil and gas impacts on the environment depend upon the nature of the environment and the effectiveness of planning, pollution prevention, mitigation and control techniques (E&P Forum/UNEP, 1997). Before the extraction of oil and gas, seismic surveys are carried out to detect potential reserves deep below the ocean floor. Potential environmental impacts of seismic surveys include the destruction of benthic communities which are important in the marine food web. The exploration, development and production can result in discharge of wastes which can
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have an adverse effect on the environment if not properly discharged and managed. Oil production and transportation could lead to oil spills that can disrupt animal and plant life.
5.3.3 Impacts of oil and gas production activities on fisheries
Adusah-Karkari (2015) explains that offshore oil and gas production activities impact on the livelihoods of coastal community dwellers. Fishermen are the most significantly affected by the development of offshore oil and gas operations (Cicin-Sain and Tiddens, 1989). According to Grant (1978), the extraction of hydrocarbons involves the building of installations and devices which impact on the free passage of fishing vessels resulting in a loss of access to fishing grounds. They pose a hazard to shipping, extraction debris can damage fishing vessels and their gear, and oil spill can damage fish stocks and their food. Miles and Geselbracht (1986) give a more comprehensive description of the impacts of oil and gas on fisheries by saying that, fishermen could experience loss of fishing opportunity, face increased navigational hazards, incur damage to fishing gear, face increased competition for onshore facilities, incur problems in the marketability of fishery products and face possible adverse impacts on fishery resources, spawning grounds or nursery sites.
Narrowing down to the Ghanaian context, Dowokpor (2015) documented that fishermen in the Western Region of Ghana are directly affected by the offshore oil and gas production activities. Fishers are not allowed to fish in or close to oil and gas exploration and production exclusive zones which leads to loss of fishing opportunity. This research identified that this is perhaps the most important issue of conflict between fisheries and the oil and gas sector at the production level. Dowokpor (2015) related the issue to the indirect impact that oil and gas production activities have on fish traders by saying that fishermen‟s catch are negatively affected by oil and gas activities which, in turn, has a direct bearing on the quantities of fish that fish traders receive
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from fishermen for sale leading to decreases in the income of fish traders. However, this conclusion requires in-depth scientific research. Apart from the negative impacts of oil and gas activities on fisheries, fishing communities have benefitted from corporate social responsibility of oil and gas companies such as community day care centres for children. According to Boohene and Peprah (2011), pollution from oil and gas activities in Ghana is inescapable. Oil and gas activities can cause chemical pollution of water bodies, air and noise, as well as plant pollution. Coconut trees and other crops along the coast of Ghana are likely to suffer from absorption of poisonous substances that will affect the process of photosynthesis. This poses health threats to people who consume coconut on a large scale.
5.4 CONFLICTS BETWEEN THE FISHERIES AND OIL AND GAS SECTORS