Shrinking exploration puts even more pressure on New Zealand鈥檚 energy security
The decision by OMV to surrender over 26,000 square kilometres of offshore exploration puts even more pressure on New Zealand鈥檚 long term energy security, according to the Petroleum Exploration and Production Association of New Zealand (PEPANZ).聽
The available area for offshore oil and gas exploration has now shrunk by two thirds since April 2018.
鈥淣ew Zealand relies on natural gas to power our industries and keep electricity prices down, but there is now real pressure on our long-term supply,鈥� says PEPANZ Chief Executive John Carnegie.
鈥淣atural gas, like other forms of energy, requires ongoing investment to maintain existing supply let alone add new reserves. For this to happen we need the right regulatory and commercial conditions.
鈥淧EPANZ members are continuing to invest in their existing assets to enhance supply in the short and medium term, but beyond that exploration is required.聽
鈥淭he Government could help by providing more flexibility for exploration and production permits, which could include extensions of both geographic areas and time limits.
鈥淭his is worthwhile because a natural gas find could create thousands of jobs and earn the Government tens of billions in royalties and taxes.
鈥淚t could also help lower emissions here in New Zealand and around the world by replacing coal for industrial use and electricity generation, smoothing the pathway to a lower emissions world.
鈥淚t would be much better environmentally and economically if we could produce our own energy ourselves rather than importing LNG from Australia or trying to subsidise our way to prosperity.鈥�