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Showing posts with label Cost/benefit analysis. Show all posts
Showing posts with label Cost/benefit analysis. Show all posts

Monday, November 25, 2013

Ron Smith: Oil and Greenpeace - the 'hooligans' are at it again!

There is a lot to debate in regard to oil exploration around New Zealand, both on land and in the adjoining seas.  Oil already makes a substantial contribution to our economy and provides well-paid employment.  It has the potential to do a great deal more.  Of course there are dangers.  Accidents can cause loss of life and environmental damage.  Manifestly, this is not peculiar to oil.  As we know too well, people can die in coal-mining, or in off shore fishing, and there are potential environmental consequences from farming, especially intensive dairy farming, which is at the heart of our present relative economic security.  For some there is also the matter of anthropogenic global warming, which condemns oil exploitation and coal mining, however safely conducted.

We need to reconcile these things.  We need to apply serious cost/benefit analysis.  How much value do we put on the potential revenues and employment possibilities that might come from exploitation of our untouched oil assets?