7. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Energy and Resources
What evidence does he have that oil and gas production has the potential to lift New Zealand’s economic growth?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
This January I released the latest New Zealand Energy Quarterly, which showed that New Zealand’s production of crude oil jumped nearly 20 percent in the quarter ended September. That was largely due to the Maari field reaching full production. Production of oil and gas in New Zealand will continue to rise, and this season will see the most extensive drilling programme since exploration began in this country. In the year 2008, oil was our third-largest export earner, at $2.8 billion. That was a 100 percent increase on the amount in the previous year. Those three facts, I think, provide the clear evidence the member seeks.
Peseta Sam Lotu-Iiga Link to this
How does the taxpayer benefit from our increasing domestic production of oil?
Hon GERRY BROWNLEE Link to this
The Crown received approximately $965 million, including taxes paid, from petroleum production in the last financial year. Of that, $543 million was in royalty payments alone. New Zealand produces in excess of 21 million barrels of oil a year. Closing the balance between oil imports and exports is a real benefit to the New Zealand economy and, consequently, the taxpayer.