Removing the ban on petroleum exploration beyond onshore Taranaki is part of a suite of proposed amendments to the Crown Minerals Act to deal with the energy security challenges posed by rapidly declining natural gas reserves, Resources Minister Shane Jones says.
“Natural gas is critical to keeping our lights on and our economy running, especially during peak electricity demand and when generation dips because of more intermittent sources like wind, solar and hydro,” Mr Jones says.
“When the exploration ban was introduced by the previous government in 2018, it not only halted the exploration needed to identify new sources, but it also shrank investment in further development of our known gas fields which sustain our current levels of use.
“Without this investment, we are now in a situation where our annual natural gas production is expected to peak this year and undergo a sustained decline, meaning we have a security of supply issue barrelling towards us.”
Having the lights go out is not a sensible energy policy!
Rebuilding investor confidence in New Zealand’s petroleum sector will require more than removing the ban. The Coalition Government is proposing further changes, agreed by Cabinet, to re-establish New Zealand as an attractive and secure destination for international investment. These changes were agreed in the New Zealand First and Act coalition agreements with the National Party.
Basically some sort of long-term contracts are needed, otherwise companies won’t commit to investments that a future Labour/Greens/TPM Government could make worthless.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
3 comments:
An energy company would have to be nuts to invest NZ. It takes millions and millions of dollars to simply explore for oil and natural gas, so would they spend that just to have a future government make it all worthless. Then, on top of that are the Iwi who will inevitably claim they own it all anyway. Long term contracts? Those aren't going to be honoured by the likes Labour, the Greens and TPM. Besides, tikanga overrides contract law anyway. Just ask the law schools and the NZ Supreme Court.
And we are in this predicament because, Jacinda Ardern, unilaterally decided she wanted to signal her virtue. Bugger NZ's future energy needs - the purported podium of 'truth and virtue' was far more important to her future employment prospects and world recognition.
The purported "progressive", who unashamedly accepted a Damehood. What more needs to be said?
With another ice age probably on the horizon, according to some geologists what are we going to have to increase our energy requirements ? Harvest all those pine trees planted for export to fuel home fires or steam generators ? Increase wool production or cull possums for more woolly garments ?
Quite ridiculous ! The latest pseudo 'science' is setting us back into the 19th century. Carbon dioxide from fossil fuels is not our problem but rather the current human stupidity based on a crazy ideology and dishonest science.
We are self destructing.
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