Will the politicians ignore it?
New Zealanders have had a wake-up call, with a report that natural gas reserves have fallen below ten years of remaining use for the first time.
The latest petroleum data from MBIE shows what authorities call the “shocking effect” of damaged investment signals.
Energy Resources Aotearoa is warning that without change, New Zealand’s energy security will be threatened.
Energy Resources Aotearoa CEO John Carnegie says:
“Almost 10% of the electricity we use to heat our homes and keep businesses’ lights on comes from NZ’s domestically produced natural gas. It is a vital component in our energy mix and picks up the slack when weather-dependent renewables cannot get there on their own.”
Carnegie says natural gas is not just used to generate electricity. NZ’s industry is powered by affordable natural gas, including industries such as dairy, methanol and steel.
“Greater investment confidence is needed immediately, as NZ now faces an energy shortfall,” he says.
“What affordable alternative renewable energy source at scale can possibly fill the gap now forecast to emerge in less than 8 years’ time? Alarm bells should be ringing”.
Carnegie reckons without enough domestic supply of energy there will be no further electrification of transport. Large manufacturers will close, and there will be no energy source capable of firming up renewables in the depths of winter other than high-emissions coal. That will be our reality if we continue down this track.
“NZ needs to restore investment confidence in the production of natural gas. Statements like those of the Australian Labor Prime Minister that gas has a key role to play in guaranteeing the country’s energy security would be a good start.”
It may be recalled the then Prime Minister Jacinda Ardern banned offshore oil exploration in 2018. She defined it as her “Nuclear-free moment”.
She defended the action, saying the transition to a zero-carbon economy “must start somewhere” and promising that no jobs will be lost.
“Unless we make decisions today that will essentially take effect in 30 or more years’ time, we run the risk of acting too late and causing abrupt shocks to communities and our country,” she said.
Reports at the time said the ban on new offshore oil and gas permits is effective immediately, but will not affect existing permits or onshore exploration in the energy-rich Taranaki region over the next three years.
Point of Order notes there are six main natural gas fields in NZ. Three are offshore: Pokohura, Maui and Kupe. The three large onshore fields are Mangahewa, Turangi and Kapuni, with another twelve smaller onshore fields.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
“Almost 10% of the electricity we use to heat our homes and keep businesses’ lights on comes from NZ’s domestically produced natural gas. It is a vital component in our energy mix and picks up the slack when weather-dependent renewables cannot get there on their own.”
Carnegie says natural gas is not just used to generate electricity. NZ’s industry is powered by affordable natural gas, including industries such as dairy, methanol and steel.
“Greater investment confidence is needed immediately, as NZ now faces an energy shortfall,” he says.
“What affordable alternative renewable energy source at scale can possibly fill the gap now forecast to emerge in less than 8 years’ time? Alarm bells should be ringing”.
Carnegie reckons without enough domestic supply of energy there will be no further electrification of transport. Large manufacturers will close, and there will be no energy source capable of firming up renewables in the depths of winter other than high-emissions coal. That will be our reality if we continue down this track.
“NZ needs to restore investment confidence in the production of natural gas. Statements like those of the Australian Labor Prime Minister that gas has a key role to play in guaranteeing the country’s energy security would be a good start.”
It may be recalled the then Prime Minister Jacinda Ardern banned offshore oil exploration in 2018. She defined it as her “Nuclear-free moment”.
She defended the action, saying the transition to a zero-carbon economy “must start somewhere” and promising that no jobs will be lost.
“Unless we make decisions today that will essentially take effect in 30 or more years’ time, we run the risk of acting too late and causing abrupt shocks to communities and our country,” she said.
Reports at the time said the ban on new offshore oil and gas permits is effective immediately, but will not affect existing permits or onshore exploration in the energy-rich Taranaki region over the next three years.
Point of Order notes there are six main natural gas fields in NZ. Three are offshore: Pokohura, Maui and Kupe. The three large onshore fields are Mangahewa, Turangi and Kapuni, with another twelve smaller onshore fields.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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