K.T Hammond’s suggestion comes on the back of reports that some countries may be shutting down the oil fields if the oil prices continue to fall.
The UK Guardian newspaper reported that “the rising sense of crisis about the plummeting price – which has fallen 60% in the last six months – prompted the Scottish government to promise an emergency taskforce to try to preserve jobs in the offshore energy sector.”
There are fears that the latest development could affect small-scale oil producers such as Ghana among others.
Commenting on the impact of the drop in oil prices on Ghana, Mr. Hammond asked the government stop the production of oil to avert the negative repercussion of the development on small-scale producers, saying , “in the case of Ghana, you will have thought that economies of scale would be applied and then we will stop production.”
He said the decision will not affect Ghana’s economy since it will be “able to survive on natural resources without petroleum money.”
K.T Hammond was quick to add that the “difficulty will be with how to stop oil production.”
“What happens to the wells which have been producing? We have to cut all those wells. Is it feasible to do technically when there are no problems with the wells and then you come back to uncut them? It is a difficulty that engineers will have to look at,” he wondered.
In a related development, the Chairman of the Civil Society Platform on Oil and Gas, Dr Manteaw has said small oil producing countries such as Ghana cannot afford to shutdown operations.
“Ghana cannot afford such a luxury. We need to take into account the fact that, for instance... If they shut down, how will they pay for their loans and interests on them? So definitely they have to continue with their operations or find a way of financing their debts,” he stated.
*** NOTE (by Ghanaweb-News): The cost of getting the oil out [from Ghana], is at the moment far higher, than Ghana is able to receive in sales. In fact, Ghana has to already finance the debts, with other means!
This means; not only, that Ghana is delivering the oil free of charge, to mainly USA, but is also financing the equipment, out of other pockets!
*** As USA is printing $US at their please (Ghana Cedis is strongly controlled and printed in Germany or USA and Britain), controlling widely the oil market, in Arab countries, Nigeria... Ghana will continue, to sell the wealth out, and has even to pay on top for, as the low oil prices are artificially created, to harm mainly Russia, Iran and China and some South American countries, such as Venezuela.