The Government crossed the final hurdle of overturning the oil and gas exploration ban as of today.
The bill passed 68 votes to 54, with all coalition parties in support and the opposition parties opposed.
Energy Resources Aotearoa CEO John Carnegie has voiced support for this change.
"We've all felt the effect of an energy shortage over the last couple of years - in terms of the threat of electricity blackouts, factory closures and high prices, and actually, we don't need to stay on this path. This bill reflects a change of path."
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Episode Transcript
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Speaker 1 (00:00):
Offshoil. Oil and gas exploration in New Zealand is no
longer banned. The Crown Mineral's Amendment Bill has passed its
third reading in Parliament this afternoon. So John Carnegie is
Energy Resources all Tailor Red Chief Executive and John joins.
Speaker 2 (00:15):
Soon now Hello John, Hello, good evening. You welcome this
and we most certainly do.
Speaker 1 (00:23):
What does this change for the oil and gas businesses
operating in New Zealand.
Speaker 2 (00:28):
Look, well, it's important to start by saying the only
way for economic growth is through energy abundance and natural
gas is a critical role to play in achieving this.
And look, we've all felt the effect of an energy
shortage over the last couple of years in terms of
the threat of electricity blackouts, factory closures and high prices.
(00:48):
And actually we don't need to stay on this path,
and this bill reflects a change of path. Look, it
definitely changes the outlook for the better. And of course
it's it's not a silver bullet, but combined with the
nature of the changes and it it sends a positive
signal that New Zealand is serious about attracting capital back
(01:11):
into the sector. Again.
Speaker 1 (01:12):
Absolutely, but as you say, it's not a silver bullet.
Because here's the thing. Lots of expiration has happened over
the last thirty years, but the fines have been minimal.
Is this really? Is there really a fortune underneath our feet?
Speaker 2 (01:25):
I look, New Zealand is highly prospective in terms of
oil and gas. The part of the problem, particularly over
the last or since the band the last seven years,
is that the oil and gas sector has been confined
to their existing mature and near end of life fields,
(01:46):
and so it gets harder and harder, and also the
incentive to invest diminishers when effectively an entire sector is
told that they're not welcome anymore. So we're hopeful.
Speaker 1 (01:58):
You're hopeful? Are you relatively commonnfident that in fact there
could be another find which will extend the life of
our natural gas fields, in particular because that's used in
so many industries and it's used by so many people
for cooking, and if that goes, we're then solely dependent
on electricity. So are you confident, not just hopeful, but
confident there are more gas? There is more gas to
(02:20):
be found.
Speaker 2 (02:21):
Oh, look, there is most certainly more guests to be
found on the spill gives us the chance to do that.
I mean, for years now, the messages our settings have
been sending to both domestic oil and gas producers and
international investors as don't bother, you're not welcome. So we're
(02:41):
now starting to tell a very different story, one that
an invites capital and capability back into the country.
Speaker 1 (02:49):
Are you expecting that capital to come back? You know,
having had the set back, having thought okay, let's just
write New Zealand off the agenda, do you think they
will come back or do you think they will be
gun shy?
Speaker 2 (03:04):
Well? Where again, we're hopeful that now that we've got
different regulatory and commercial settings, that investors will start to
reassess New Zealand is a place to invest and look
more favorably on doing so.
Speaker 1 (03:23):
But what happens if Labour wins the next election, and
will they slap the band right back on? And then
will overseas agencies who actually fund this sort of thing
already be thinking that and thinking well, no, it's going
to take a long time for us to earn their
trust back.
Speaker 2 (03:37):
Oh well, look, I mean I think the sector is
it's more than happy to work with whoever is on
government to to assure them that they can do their
activity in an environmental sound way. It can do it
(03:58):
in a way that protects the risks to text bars
and in fact do it in a way that keeps
our factories humming, internationally competitive in our households able to
afford energy. So you know, I think there's a range
of positive benefits from greater expiration.
Speaker 1 (04:14):
Now this new Crowd Minerals Amendment Bill, there was a
late change around the liability for decommissioning oil and gas operations.
And there's been coverage this week about the two he
Find and Tarlanaki that was financed by Tamarind out of Malaysia,
and they went broke and then they walked away, and
they didn't decommission and they didn't clean up, and so
the taxpayers ended out with a three hundred million dollar charge.
(04:36):
We then changed the laws to make sure that the
operators were then liable for their mess. Is there a
risk that taxpayers could end out having a Tamarind situation
back on their hands again in the future.
Speaker 2 (04:47):
Well, first of all, I think we should point out
that Tamaran was able to come into the country via
a legislative loophole which was closed. So regulators actually do
their job. We'll only get permit holders who are financially robust.
But the thing that the camera and instance highlighted was
(05:09):
the need to manage financial risk appropriately, and that's what
this set of reforms aims to do. The industry clearly
supports a more discretionary, case by case approach to decommissioning
because the risks aren't the same across all permit holders.
So you know, what's important is that this bill will
(05:29):
now act strikes the right balance protecting tax payers while
still allowing investment in the infrastructure we need.
Speaker 1 (05:37):
Well, John Kennig, I presume it's a very good day
to you, and I thank you very much for your
time today. John is the Energy Resources are Chief Executive
and this is News TALKSB.
Speaker 2 (05:49):
For more from Hither Duplessy Allen Drive, Listen live to
News Talks ITB from four pm weekdays, or follow the
podcast on iHeartRadio.
Offshoil. Oil and gas exploration in New Zealand is no
longer banned. The Crown Mineral's Amendment Bill has passed its
third reading in Parliament this afternoon. So John Carnegie is
Energy Resources all Tailor Red Chief Executive and John joins.
Speaker 2 (00:15):
Soon now Hello John, Hello, good evening. You welcome this
and we most certainly do.
Speaker 1 (00:23):
What does this change for the oil and gas businesses
operating in New Zealand.
Speaker 2 (00:28):
Look, well, it's important to start by saying the only
way for economic growth is through energy abundance and natural
gas is a critical role to play in achieving this.
And look, we've all felt the effect of an energy
shortage over the last couple of years in terms of
the threat of electricity blackouts, factory closures and high prices.
(00:48):
And actually we don't need to stay on this path,
and this bill reflects a change of path. Look, it
definitely changes the outlook for the better. And of course
it's it's not a silver bullet, but combined with the
nature of the changes and it it sends a positive
signal that New Zealand is serious about attracting capital back
(01:11):
into the sector. Again.
Speaker 1 (01:12):
Absolutely, but as you say, it's not a silver bullet.
Because here's the thing. Lots of expiration has happened over
the last thirty years, but the fines have been minimal.
Is this really? Is there really a fortune underneath our feet?
Speaker 2 (01:25):
I look, New Zealand is highly prospective in terms of
oil and gas. The part of the problem, particularly over
the last or since the band the last seven years,
is that the oil and gas sector has been confined
to their existing mature and near end of life fields,
(01:46):
and so it gets harder and harder, and also the
incentive to invest diminishers when effectively an entire sector is
told that they're not welcome anymore. So we're hopeful.
Speaker 1 (01:58):
You're hopeful? Are you relatively commonnfident that in fact there
could be another find which will extend the life of
our natural gas fields, in particular because that's used in
so many industries and it's used by so many people
for cooking, and if that goes, we're then solely dependent
on electricity. So are you confident, not just hopeful, but
confident there are more gas? There is more gas to
(02:20):
be found.
Speaker 2 (02:21):
Oh, look, there is most certainly more guests to be
found on the spill gives us the chance to do that.
I mean, for years now, the messages our settings have
been sending to both domestic oil and gas producers and
international investors as don't bother, you're not welcome. So we're
(02:41):
now starting to tell a very different story, one that
an invites capital and capability back into the country.
Speaker 1 (02:49):
Are you expecting that capital to come back? You know,
having had the set back, having thought okay, let's just
write New Zealand off the agenda, do you think they
will come back or do you think they will be
gun shy?
Speaker 2 (03:04):
Well? Where again, we're hopeful that now that we've got
different regulatory and commercial settings, that investors will start to
reassess New Zealand is a place to invest and look
more favorably on doing so.
Speaker 1 (03:23):
But what happens if Labour wins the next election, and
will they slap the band right back on? And then
will overseas agencies who actually fund this sort of thing
already be thinking that and thinking well, no, it's going
to take a long time for us to earn their
trust back.
Speaker 2 (03:37):
Oh well, look, I mean I think the sector is
it's more than happy to work with whoever is on
government to to assure them that they can do their
activity in an environmental sound way. It can do it
(03:58):
in a way that protects the risks to text bars
and in fact do it in a way that keeps
our factories humming, internationally competitive in our households able to
afford energy. So you know, I think there's a range
of positive benefits from greater expiration.
Speaker 1 (04:14):
Now this new Crowd Minerals Amendment Bill, there was a
late change around the liability for decommissioning oil and gas operations.
And there's been coverage this week about the two he
Find and Tarlanaki that was financed by Tamarind out of Malaysia,
and they went broke and then they walked away, and
they didn't decommission and they didn't clean up, and so
the taxpayers ended out with a three hundred million dollar charge.
(04:36):
We then changed the laws to make sure that the
operators were then liable for their mess. Is there a
risk that taxpayers could end out having a Tamarind situation
back on their hands again in the future.
Speaker 2 (04:47):
Well, first of all, I think we should point out
that Tamaran was able to come into the country via
a legislative loophole which was closed. So regulators actually do
their job. We'll only get permit holders who are financially robust.
But the thing that the camera and instance highlighted was
(05:09):
the need to manage financial risk appropriately, and that's what
this set of reforms aims to do. The industry clearly
supports a more discretionary, case by case approach to decommissioning
because the risks aren't the same across all permit holders.
So you know, what's important is that this bill will
(05:29):
now act strikes the right balance protecting tax payers while
still allowing investment in the infrastructure we need.
Speaker 1 (05:37):
Well, John Kennig, I presume it's a very good day
to you, and I thank you very much for your
time today. John is the Energy Resources are Chief Executive
and this is News TALKSB.
Speaker 2 (05:49):
For more from Hither Duplessy Allen Drive, Listen live to
News Talks ITB from four pm weekdays, or follow the
podcast on iHeartRadio.
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