Oil is part of our lifestyle, says Z chairman

THE man who arrived in the oil industry 25 years ago wearing a set of overalls he has since exchanged for a suit and tie says he has always found it ironic people think the oil industry is just now coming to New Zealand.

It has been here for more than 100 years, Peter Griffiths says, after oil was first discovered in Taranaki in 1865, but because oil is so interwoven with people’s lifestyles, they do not even notice it.

He also thinks it will take people a while to realise Z Energy is different from competitors, but he hopes its New Zealand ownership will provide it with a distinct advantage in the market.

Z Energy chairman Griffiths, who took on the role when the company listed on the stock exchange in August, has worked in the oil industry for most of his working life.

Before joining Z, Griffiths was BP New Zealand’s managing director for 10 years, and first joined the industry as a diver about 25 years ago.

He has stood on the seabed of the Maui platform, about 105 metres below the surface. Even ear- lier, he studied marine zoology at Victoria University of Wellington, in the city he has lived for much of his life.

Griffiths said he imagined all the executives from oil companies about 20 years ago dreamed of owning the companies they worked for, rather than being branch offices of global organisations. ‘‘It’s always been a topic of dinner conversation around many, many tables I think. We’re getting to do that now, here, so we’re very lucky.’’

In August this year, Z Energy listed on both the NZX and ASX, as 10,000 local mum and dad investors signed up for about a quarter share in the company. On its first day shares traded almost 24 cents up on the $3.50 listing price, and last week had risen to above $4.

Griffiths said the New Zealand ownership was vital to the company, which he wanted to be at the forefront of bringing new energy technologies to the domestic economy.

‘‘This is our market, we don’t focus on anything else, the customers here are our customers and this is where we choose to invest our capital.

‘‘That’s not true of our competi- tor set; their management have a different economic challenge in front of them, where to spend that capital across the world.’’

Z Energy sells about 2.5 billion litres of highly flammable product each year, and the consequences of any mistakes could be dire, he said.

But as a business it was a fundamental interest of Z’s to make sure it did not cause damage to the environment or its customers.

Concerns about not wanting the oil industry in New Zealand were ironic he said, because it was already here.

This made it all the more important Z Energy’s governance ensured the business performed as expected, because fuel was so entrenched in everyday activities.

‘‘You don’t actually see our products when you use them, you see the little dial tick over on the pump and the car tells you it’s got something inside it. But you see the benefit you get.’’

This is why, despite a ‘‘greenie’’ background, Griffiths had always worked in the oil industry. ‘‘I think it’s the most important industry bar none, for the developed world, and without it, life is very, very different.’’