Examining the Determinants of Contemporary and Future Demand and Supply Dynamics Of the Global Oil Industry: Implications for Ghana as an Oil Exporter.
Global Oil industry demand and supply dynamics have historically been and remain a major current concern because of how pertinent and far reaching the global oil industry is for global, national, and local economies. The current problem is that we do not know where oil will trend in the future, because the demand and supply determinants of the industry keeps shifting with global dynamics including pandemics like COVID 19 and for geopolitical reasons. Hence, it is imperative to understand what is happening in the oil industry now, and the industry’s outlook. This study posed a simple question “What are the contemporary and future demand and supply factors of global oil and how should an oil exporting African country like Ghana position itself given it is currently reliant on oil revenue?” Primary data was collected using one-on-one semi-structured interviews with industry experts. Thematic text analysis via a concept mapping approach was also used to analyze data. The results showed that geopolitics, the push for renewable energy, and energy efficiency methods are factors influencing supply of global oil. Also, robust economies and industries, covid-19, energy generation, and environmental concerns are key determinants of demand of global oil. The outlook of the industry reveals that the oil industry will change going forward, with renewables forming a bigger part of the energy mix. As an implication, Ghana will likely benefit from high cash inflows from oil, and that the global dynamics do not pose a catastrophic threat on the country. The study recommends that Ghana quickly expedites the exploration and production of the country's oil reserves. Most importantly, the government is advised to start developing and implementing policies that will allow it to diversify away from oil and to invest in and adopt the use of renewables in the long run.
Undergraduate thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2022
Ayomah, J. (2022). Examining the Determinants of Contemporary and Future Demand and Supply Dynamics Of the Global Oil Industry: Implications for Ghana as an Oil Exporter. Ashesi University.