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,” said Jones.
“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.”
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.
“Our job as the Government is to provide the right policy settings to enable the sector to get to work, and that’s exactly what we are aiming to achieve through these amendments,” said Jones.
“Some of our current settings are a barrier to attracting investment in exploration and production because they are overly costly and onerous on industry. Some obligations lack necessary flexibility, and compliance obligations are uncertain and unclear.
“As well as removing the ban, we are proposing changes to the way petroleum exploration applications are tendered and allocated, aligning the petroleum decommissioning regime with international best practice, and improving regulatory efficiency.”
New Zealand cannot ignore the significant economic contributions the petroleum and resources sector delivers, and the opportunities further strategic development represents.
“Our petroleum and minerals sectors contributed $1.9 billion to GDP in 2020-21 and $236 million in Crown revenue in 2022-23. In 2023 mining employed around 6000 people, the majority of which are based in regional communities,” said Jones.
“I want a considered discussion about how we use our natural resources to improve the security and affordability of energy and resources supplies, stimulate regional economic development opportunities, and increase New Zealand’s self-sufficiency to protect against volatile international markets.”
The Crown Minerals Amendment Bill will be the latest piece of legislative reform introduced by the Government aimed at cutting red tape to enable crucial resources and infrastructure projects across New Zealand, and benefits to flow to communities. The Bill will be introduced to Parliament in the second half of 2024.
For more information, visit 2024 Proposed amendments to the Crown Minerals Act 1991 | Ministry of Business, Innovation & Employment.
Image credit: Ilse Driessen
What a totally sensible thing to do! But the urban Greens, who know little of the real world, will be hysterical about this lol
We have 400+ years of Natural Gas in and around the territorial waters.
In proper dream-time, the Government would set aside $$ in a grant to pay for converting Petrol Vehicles over to LPG via Natural Gas refining…
LPG- $1.80 / litre;
LPG- Equal to 99 Octane;
LPG-Burns 99% cleaner;
LPG- Conversion over to LPG retro-fitting kits; about $1200.
Then, the Globalist con job of ‘carbon credits’ goes right into the toilet, while saving Kiwis $1.60 per litre as compared to gasoline.
Annual savings to the motorist; $3,072.00.
I like my gas guzzler just the way it is.
In other words, the government wants more revenue.
Finally a common sense decision. Glad my gas stove top can be kept running. Love cooking with gas.
Compare this to Communist Kalifornia outlawing gas stoves on a statewide basis, and Poopy Pants Biden wanting to outlaw gas nationally…although he produces his own…gas…!
Yep the US is a horrible mess…his departure “might” be a cause for celebration in that country (depending on who/what takes his place)…
We all need petrol/gas at present until the free energy/clean energy technology is released from “deep black” and USAPs (Unacknowledged Special Access Programs). That would only happen after some miracle event.
Anybody who thinks EV’s are environmentally friendly lacks critical thinking skills: The electricity is generated by burning coal or oil to drive generators. Some electricity is from fission plants which leave highly radioactive products that are dangerous for thousands of years.
For now, hydrocarbons are the only way.