PEPANZ disappointed in Block Offer changes
The Petroleum Exploration and Production Association of New Zealand (PEPANZ) is very disappointed in the Government鈥檚 decision to halt offshore Block Offers, saying it is likely to affect New Zealand鈥檚 energy security and international reputation.
鈥淭he decision is a lose-lose for New Zealand鈥檚 economy and environment, likely to threaten jobs and mean higher prices for consumers,鈥� says PEPANZ CEO Cameron Madgwick.
"This will do nothing to reduce global greenhouse gas emissions and could make them worse. Because petroleum is produced to meet growing global demand, not exploring and producing in New Zealand simply means other countries will produce it instead and we will have to import it at higher cost.
鈥淚t also means New Zealanders will miss out on the substantial economic benefits that could come from new developments. The Government receives around $500 million a year in taxes and royalties per year from the sector and employs over 11,000 people at peak times, all of which will decline without new activity.
鈥淥ur known gas supplies will run out in 11 years. Apart from importing fuels with higher emissions, where else will we get energy from and how much will it cost consumers and businesses?
鈥淣atural gas and oil provide over half of New Zealand鈥檚 energy and are crucial to households, businesses, schools and hospitals. While other sources of energy are being developed there is no realistic way they can cover this demand in the immediate future.
鈥淲e are already seeing the potential impact this week with coal being used for electricity generation to ensure security of supply following the interrupted gas supply from Taranaki.
鈥淲e are disappointed there has been no direct consultation with the industry and it is also a surprise given the Labour Party鈥檚 2017 energy manifesto talked of continuing offshore exploration.
鈥淗uge investments have been made by companies already anticipating offshore block offers which have now gone to waste and people鈥檚 jobs will be affected. It sends a worrying message to domestic and international investors on how open New Zealand is as a place to invest and create jobs.
鈥淲e ask the Government to talk with the industry urgently. In the meantime, we will be carefully considering the ramifications of this decision and our options going forward.鈥�
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