Oil industry told to plan transition
Energy and Resources Minister Dr Megan Woods has refused to give details of whether the Government will offer more oil exploration permits, as she delivered a speech heavily focused on life after petroleum.
In the keynote speech to the New Zealand Petroleum Conference in Wellington yesterday, the MP for Wigram told delegates that officials had been instructed to begin a transition planning role.
‘‘In our view there are two choices: bury our head in the sand and assume the transition will take care of itself, or be responsible and make plans now for our future,’’ Woods said.
‘‘We will bring industry, the workforce and government together to develop a plan.’’
Having lived through the reforms of the 1980s, the Government wanted to ensure the transition away from oil did not hurt the regions, Woods said.
‘‘In order to avoid shocks and disruptions as we undergo these structural adjustments, it is imperative that we have robust across-government transition planning that is well connected to industry and workforce.’’
Woods repeated the Government’s stance was that existing contracts would be honoured, and even stressed that gas may have a role in electricity generation beyond 2035 if the frailties of New Zealand’s generation are exposed by a lack of rain.
‘‘This Government is well aware of the huge importance of peaking to ensure security of electricity supply. That’s why our commitment around the pathway to 100 per cent renewable energy by 2035 contains the phrase in a normal hydrological year.’’
Woods refused to say whether or not there would be another block offer in 2018 or beyond, the method used to offer permits to the industry in recent years.
Although the rhetoric appears to signal an end to exploration, Woods and others have insisted no decision is made.
The industry’s future has been in the spotlight since March 19, when Prime Minister Jacinda Ardern received a petition from Greenpeace calling for the end of oil exploration. Ardern said the Government was ‘‘actively considering’’ the issue.
Woods has said an announcement on the subject will be made in the coming weeks.
Cameron Madgwick, chief executive of industry lobby group Pepanz, said Woods had given delegates ‘‘real clarity’’ that no decision had been made on whether new exploration permits would be offered.
National Party leader Simon Bridges said he would not be surprised if there was no block offer in 2018, but that was ‘‘a world away’’ from an end to exploration.
‘‘I don’t think the Government will do that. I think what they will do is be all things to all people, to send one message to Greenpeace … and then another thing to business audiences.’’