Oil and gas exploration ban lifted, industry excited

Archive photo.
photo: supply

Industry bodies are very excited about the government lifting the ban on offshore oil and gas exploration.

Resources Minister Shane Jones confirmed the reversal on Sunday.It said New Zealand’s gas reserves were dwindling, while sustainable energy sources such as wind, solar and hydropower were volatile.

“Natural gas is critical to keeping our electricity supply and economy running, especially during times of peak electricity demand and when generation drops due to intermittent energy sources like wind, solar and hydroelectric,” Jones said.

The reversal was signalled in the government’s coalition agreement.

Industry group Energy Resources Aotearoa said it was pleased to see the ban lifted.

Chief Executive John Carnegie said lifting the ban was a sensible and pragmatic policy and that a secure gas supply would support the transition to renewable energy.

“I think it’s a mistake to think of this as a binary concept – either it’s gas or it’s meeting our climate change goals.

“We can actually have more gas and meet our climate change goals.

“Natural gas will help support the continued growth of renewable electricity.”

“The gas industry has very strict environmental permitting and operating rules, some of the strictest in the world, so the risk to our natural environment from oil and gas production is very, very low.”

Green Party co-leader Chlöe Swarbrick.
photo: RNZ/Samuel Rillstone

But Green Party co-leader Chlöe Swarbrick said the government had ignored international advice.

“The International Energy Agency tells us that we need to produce no new oil, coal and gas from 2021, so the science is very clear.”

Labour said the reversal was a huge step backwards for New Zealand’s climate response.

Labor energy spokeswoman Megan Woods, who proposed the ban when she was energy minister in 2018, said the policy did not help the transition to renewable energy and gave fossil fuel companies free rein to damage the environment.

“This will lock in emissions for decades to come.”