Examining the Determinants of Contemporary and Future Demand and Supply Dynamics Of the Global Oil Industry: Implications for Ghana as an Oil Exporter.
Date
2022
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Ashesi University
Abstract
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.
Description
Undergraduate thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2022
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Citation
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.