Oil Since 2010

How Ghana began pumping oil from the Jubilee field in 2010, the Petroleum Revenue Management Act designed to avoid the resource curse, and results so far.

Ghana became an oil producer in 2010.

Jubilee field

Discovered in 2007, the offshore Jubilee field began production in December 2010.

Hopes

Oil was expected to fund development.

Revenue law

The Petroleum Revenue Management Act, 2011:

Splits revenue between the budget and funds.
Creates a Stabilisation Fund and a Heritage Fund for future generations.
Requires public reporting.

Reality

Oil revenue was smaller than hoped, and government borrowing still rose.

Lesson

Good laws help, but don’t guarantee avoiding the resource curse.

The Heritage Fund

Part of each year's oil revenue goes into a fund meant for future Ghanaians.

Thinking oil makes countries rich automatically

Revenue must be managed.

Key takeaways

Jubilee oil began in 2010.
A 2011 law manages revenue.
Funds save for stability and the future.
Borrowing still rose.