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New Zealand to overturn ban on new oil, gas exploration

  • Märkte: Crude oil, Natural gas
  • 10.06.24

The New Zealand government aims to introduce legislation later this year to overturn a 2018 ban on new oil and gas exploration.

Resources minister Shane Jones said on 9 June that the amendment to the existing law will be introduced to parliament in the second half of this year, to deal with energy security challenges.

The previous Labour party-led coalition had implemented the ban by not issuing any new oil and gas exploration permits, as part of a pledge to achieve a carbon neutral economy by 2050. Its 2018 exploration block offer was limited to onshore acreage in the Taranaki basin on the North Island.

But political parties that now make up New Zealand's centre-right coalition government campaigned on reviving New Zealand's energy sector.

"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," Jones said. "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."

Estimated gas reserves have dropped below 10 years of remaining use for the first time, based on average gas use of 200 PJ/yr (5.34bn m³/yr) over the last 10 years, the Ministry of Business, Innovation and Employment said last year, although current gas use and supplies are below this level. Proven plus probable gas reserves dropped by 17pc on the year to 1,635PJ in 2013.


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