7. JONATHAN YOUNG (National—New Plymouth) Link to this
to the Minister of Energy and Resources
What measures has he taken to promote oil and gas exploration in New Zealand?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
The Government has already taken a number of steps to promote oil and gas exploration in New Zealand. Before Christmas, I transferred $3.5 million of expenditure from Vote Economic Development to Vote Energy, in order to pay for the acquisition of a 1,000-kilometre line of seismic data in the Regina basin. This work will start in March.
Hon GERRY BROWNLEE Link to this
The provision of seismic data to exploration companies stimulates oil and gas exploration in New Zealand waters. To date, the previous Government’s seismic data acquisition programme, at a value of $21 million, has generated new exploration expenditure commitments of approximately $1.4 billion from the private sector.
Hon Dr Michael CullenHon GERRY BROWNLEE Link to this
It therefore had a return ratio of 1:80. As the previous Minister of Finance, Dr Cullen, says, what a great programme it was, which makes it all the more surprising that he cut it. He actually cut it out of existence in his 2007 Budget. Recognising the benefits of that programme, this Government is doing some work to see what we might be able to do for the future.
Charles ChauvelHas the Minister seen the Fitch Ratings report dated 6 February 2009 that predicts that his repeal last year, under urgency, of the thermal baseload electricity generation moratorium will result in “a continued dependence on thermal plants” for New Zealand, and that to run them “New Zealand faces the prospect of imports of either LNG or CNG, likely to be significantly more expensive than gas from existing fields”, “exposing New Zealand to higher and more volatile international oil and gas prices”; and what does that say about his Government’s vision for energy independence for New Zealand?
Hon GERRY BROWNLEE Link to this
I have seen reports that New Zealand has secure gas supply to perhaps as far out as 2025. I have also seen reports that show New Zealand is an extremely prospective place, where there may well be further considerable oil and gas deposits. We want those deposits to be found. Further, I say it is extraordinary that the previous Labour Government was so opposed to the use of thermal electricity generation, yet last winter more than 50 percent of New Zealand’s electricity needs were met from thermal sources. It is also staggering that during the time of the so-called sustainable Labour Government, the use of thermal fuels for electricity grew astronomically.
Hon GERRY BROWNLEE Link to this
Yes. Before Christmas, as the previous questioner asserted, we did remove the ban on thermal baseload electricity generation. We also opened bidding for new petroleum exploration permits in the Raukūmura and Northland basins. We are very optimistic about what may come from that.