An industry group is excited about the government’s decision to lift the ban on offshore oil and gas exploration. The Minister for Resources, Shane Jones, announced the decision, explaining that New Zealand’s natural gas reserves are decreasing. He also mentioned that sustainable sources like wind, solar, and hydro power are not always reliable.
Jones said that natural gas is crucial for maintaining electricity supply and supporting the economy, especially during high electricity demand periods and when other energy sources are not producing enough.
The industry group, Energy Resources Aotearoa, expressed their happiness about the ban being lifted. Its CEO, John Carnegie, called the decision sensible and practical. He believes that a secure gas supply will help the transition to renewable energy.
Carnegie pointed out that it’s not a choice between using gas or achieving climate change goals. He believes that we can increase gas usage and still meet our climate change targets. He also highlighted that the gas sector follows very strict environmental rules, so the risk to the environment from oil and gas production is minimal.
However, not everyone agrees with the decision. Green Party co-leader Chlöe Swarbrick criticized the government for ignoring international advice. She referenced the International Energy Agency’s recommendation to stop new oil, coal, and gas projects from 2021.
The Labour Party also criticized the decision, calling it a huge step back in New Zealand’s response to climate change. Labour energy spokesperson Megan Woods, who introduced the ban in 2018, said the new policy would not aid the transition to renewable energy and would allow fossil fuel companies to exploit the environment. She warned that this could result in emissions being locked in for many years to come.
