天美直播

Proposed new rules for decommissioning oil and gas infrastructure need a rethink to achieve their objectives and avoid unintended consequences, 天美直播has told a select committee this morning.聽

鈥淭he industry supports the intent of the Bill and our members are already set to take responsibility for decommissioning fields at the end of their lives,鈥� says chief executive John Carnegie.

鈥淗owever the Bill is regulatory overkill with different requirements piling on costs, far more than needed to protect taxpayers.

鈥淢uch of the Bill is retrospective, which is like moving the goal posts after the ball has been kicked.聽

鈥淭hese changes could add even more uncertainty and disincentive to invest in our natural gas supplies, driving up the cost of energy even higher.

鈥淭his would destroy jobs, punish our exporters, and increase the cost of living for vulnerable New Zealanders.鈥�

Energy Resources Aotearoa鈥檚 submission is supported by independent advice commissioned from experts:

• Law Professor Philip Joseph finds the bill to be retrospective and 鈥渃onstitutionally objectionable鈥� and 鈥渞aises a fundamental rule of law concern鈥�, which would be damaging to business confidence.

• Justin Smith QC expresses serious concern about 鈥榯railing liability鈥�, which means former permit holders can be liable for fields they have transferred and no longer control. He says it is 鈥渁 truly novel and draconian provision in New Zealand鈥�.

• Consultants Wood Mackenzie find the New Zealand proposals are far stricter than comparable jurisdictions and unnecessarily duplicative. They find that 鈥渟uch a strict regulatory system is not necessary to obtain a satisfactory level of taxpayers鈥� protection.鈥�

• Economics consultants Castalia finds the proposal鈥檚 costs to greatly outweigh the benefits with net costs to New Zealand of almost $1 billion, generating only 11 cents of economic benefit for every dollar of cost.

鈥淕iven there is no urgency with no fields due for decommissioning soon, we鈥檇 like to work with the Government on a new regime to achieve the goals we all share.鈥�

The full submission including expert opinions is available here.