6. DAVID CLENDON (Green) Link to this
to the Minister of Energy and Resources
Has the Government granted any other permits for exploratory oil drilling in waters as deep as the Petrobras permit in the Raukūmara Basin allows; if so, when?
Hon STEVEN JOYCE (Minister of Transport) Link to this
It is difficult to give a yes or no answer to that question because the Petrobras permit in the Raukūmara basin covers water depths from a range of 250 to 2,500 metres. However, a number of permits have been granted to similar depths. In 2005-06 two petroleum exploration permits in the Canterbury Basin were granted, parts of which cover water depths of 1,000 to 2,000 metres. In 2006 a permit was granted in deep-water Taranaki Basin covering depths from approximately 500 to 1,700 metres. In 2007 three petroleum exploration permits in the Great South Basin were granted covering depths from 500 metres to 1,700 metres. These were, of course, all granted by the previous Government, which the member’s party supported.
Can the Minister confirm that the depth of the Raukūmara basin is between 2,000 and 3,000 metres, and therefore Petrobras’ exploratory well would be up to 20 times deeper than the average offshore well in the Taranaki Basin?
I can confirm that the Raukūmara basin covers depths up to 3,000 metres but, as I said in the answer to the primary question, the permit covers areas of water depth ranging from 250 to 2,500 metres.
Given that the average well in Taranaki is some 150 metres deep, and the deepest are 330 metres, what additional safety measures does the Minister think appropriate for Petrobras to safely drill at a depth between 2,000 and 3,000 metres?
Although that may be true, I point out again that, as I said in answering the primary question, a number of exploration permits were granted to greater depths by the previous Government. Of course, Maritime New Zealand administers the Maritime Transport Act in respect of safety and marine protection standards and rules, and emergency maritime and marine protection rules apply. Operators must have the appropriate approvals from Maritime New Zealand before they drill exploratory wells.
Does the Minister know that the catastrophic oil leak in the Gulf of Mexico occurred in an exploratory oil well at a depth of around 1,500 metres, roughly half the depth of the Raukūmura basin?
Yes. Of course, just because that happened to one oil well does not mean that it will happen to all. Again I point out that the previous Government also issued permits for depths of those sorts of ranges through the Great South Basin, the deep-water Taranaki Basin, and the Canterbury Basin. That Government was one that was supported by the Green Party.
Hon John Boscawen Link to this
Can the Minister assure the House that the Government will permit Petrobras to drill its exploratory well, and will not bow to the demands of a few protesters as it did over schedule 4?
The Government confirms both the rights of the permit-holders to complete the requirements of their permit and of the protesters to protest. Both of those rights are important. I point out that the process requires that the 2-D and 3-D work be done, then Petrobras will have to fulfil the regulatory requirements before drilling an exploratory well.
Will the Government require a substantial bond from Petrobras as insurance against the possibility of a catastrophic oil leak costing taxpayers billions of dollars?
A number of requirements are placed on operators before they can drill exploratory wells under the Maritime Transport Act, and Maritime New Zealand will ensure those are met.
I raise a point of order, Mr Speaker. We are entirely aware of the maritime safety requirements on these matters. The question asked whether the Government would require a financial bond.
Mr SPEAKERThe member makes a fair point. The question was very specific. It asked whether the Government would require a bond prior to Petrobras being able to drill its exploratory well, and the Minister, in so far as he is able to, should answer that.
We would look to consider that option at the time. A number of areas of work are going on currently in terms of what is permitted in New Zealand’s exclusive economic zone and expanded continental shelf, and the Acting Minister of Energy and Resources, the Minister for the Environment, and the Minister of Transport will be involved in them.
Hon John Boscawen Link to this
When will this Government show a sense of urgency about jobs in the minerals and oil exploration sectors so that we can see the sort of progress that is being enjoyed in Canada, where in Alberta the unemployment rate has tumbled, 70,000 jobs were created last year alone, and oil-sands companies are scrambling to hire increasingly scarce skilled labour?
The member makes a very fair point. Energy exploration is a very strong export earner, not only for Alberta but also here in New Zealand. Here in New Zealand last year it brought in $2.1 billion in revenue, and directly and indirectly employed over 7,000 people. So the member makes a fair point, but the Government will also want to focus all the way through on making sure that the required environmental safeguards are in place, and I am sure that is what New Zealanders will want to see.
Hon John Boscawen Link to this
I seek leave of the House to table an extract from yesterday’s Canadian newspaper The Globe and Mail, discussing the growth in the oil exploration sector in Alberta, where over 70,000 jobs were created last year.
Will the Government require Petrobras to have readily available an additional deep-water rig capable of drilling a relief well once exploratory drilling starts; if not, why not?
Those matters would be addressed at the time. I point out that the Marine Pollution Response Service consists of a number of internationally respected experts, some of whom were involved in the spill management over in Florida, and they manage a team of around 400 local government and Maritime New Zealand responders. We have equipment in stores strategically located around New Zealand, but probably the key point for the member is that the plan is regularly evaluated and re-evaluated to ensure that it meets changing risk profiles. Should the pattern of oil exploration or production change, Maritime New Zealand would look to ensure that the appropriate equipment is available to respond to that change.
Does the Minister agree with Petrobras’ head of New Zealand operations, Mr Marco Toledo, who said: “Guarantee (of safety) is not a word that exists in our industry.”?
I do not feel that I should respond to a quote as short as that, because I have no idea of the context in which it was given.
Can the Minister name any environmentally or economically catastrophic event that has resulted from accidents involving wind, solar, or geothermal electricity generators?