The Government has claimed oil and gas exploration is necessary to address energy security issues - but it's unlikely to attract overseas investors.
Resources Minister Shane Jones yesterday confirmed the ban on petroleum exploration beyond onshore Taranaki will be reversed in the coming months.
Energy Resources Aotearoa Chief Executive John Carnegie says bringing in overseas investment is going to be a 'long-term effort'.
"We've only seen details in the press release, so we have to be slightly more patient to see what comes through in the legislation."
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Now the government is planning to introduce legislation this year
to lift the oil and gas exploration ban, but so
far it appears that there is no interest from any
of the overseas investors in coming back to New Zealand.
And why would they because Labour's Energy spokesperson Meghan Woods
is already floating the idea of rebanning the oil and
gas exploration when they get back in our members who
(00:20):
are a very strong case for it at twenty eight
and see the case is being even stronger now.
Speaker 2 (00:25):
Oil and gas is not going to be a future.
We've got to be planning for a different future now.
Speaker 1 (00:29):
John Carnegie is the CEO of Energy Resources Ulta at
Owners with us.
Speaker 2 (00:33):
Now, how John, Hey, how are you doing ether Very well?
Speaker 1 (00:36):
Thank you. Have you heard of any interest from overseas?
Speaker 2 (00:41):
Oh no. And it's going to be a long term effort.
You know, Minister Jones talks about going out and talking
to the rest of the world saying we're open for business.
He's going to have to use the full extemes of
his charm in doing that.
Speaker 1 (01:00):
We haven't had any I mean these guys were elected
in October, which means that it's and they made it
very clear that they would be bringing back oil and
gas expiration. If nine months on from them, we still
haven't had any overseas interest. Do you really think we're
going to get any or was the ship sailed?
Speaker 2 (01:16):
I don't think the ship sailed at all. I think
what's happening is that investors, and this is both the
domestic the current incumbents we're producing guests to keep our
lights on now as well as potential offshore investors are
looking to wait to see what the actual changes are.
Speaker 1 (01:39):
So they want to see some assurance or some sort
of some sort of thing to make them feel confident. Yeah.
Speaker 2 (01:46):
Yeah, well, I mean I guess there are two questions
on that. So they are seeing material enough changes and
then I guess the other part to that is, well,
you know, what do we think will do the job
in terms of them? Are they material enough? Well, we've
only seen detail and pressfulness, so we have to be
(02:08):
slightly more patient. You see what comes through in the legislation.
Speaker 1 (02:11):
So John John what Shane Jones. Shane Jones seems to
have landed on the solution here being if the contracts
are long enough that will give some assurance to the
overseas investors. Is that the answer long contracts?
Speaker 2 (02:23):
Oh well, I mean I don't. I think he also
a month or two ago talked about bonds, but he seems.
Speaker 1 (02:29):
To have said he can't do that because he would
be there will be this, this government, this parliament, tying
the hands of a future parliament which can't.
Speaker 2 (02:35):
Do well well. A bond could be similar to a
long term contract. I mean, there is just a number
of mechanisms, but I think again we'd need to see
the detail. But the key thing is we think he's
on the right track. You know, these are long lived
their sets, you know they I mean take say we
(02:57):
had a discovery today, it could take up the keen
is before it's even producing. So that crosses how many
three four are electrical sites. That's why the sector will
need confidence. I want to see that they are going
to be kept whole, that the changes, the things, the
investments I said that they make today are still going
(03:18):
to be whole in ten twenty years time. And i'd
use Maui. The Marwi gasfield started producing in nineteen seventy nine,
so these are and still going and hopefully got a
while left to go. So you know, these are the
long lived assets. It's really important that we see and
(03:39):
we get investors back that they don't think that the
rules are going to change halfway through.
Speaker 1 (03:43):
This is how unhelpful are the likes of Meghan Woods
at the moment.
Speaker 2 (03:49):
Oh, Meghan has a particular particular view, and so she's
trying to change the nature of the nature of the debate.
I just think that we have to see the black
and white. Let's see the deals, Let's see the let's
see the legislation. Investors will make risks, adjusted decisions. I'll
(04:12):
look at the detail and they'll decide whether or not
to put money back in New Zealand or keep it
in Australia or put it somewhere else. And I guess
that's the thing that we are going to be looking
for that minister actually puts suitable arrangements in place to
give investors in long lived essets sufficient confidence.
Speaker 1 (04:34):
John, you are so much more optimistic than I am.
But I'm taking some heart from it. That's John Carnegie's
the chief executive of Energy Resources.
Speaker 2 (04:40):
Out here or for more from hither duplessy Alan Drive
listen live to news talks.
Speaker 1 (04:46):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio,
Now the government is planning to introduce legislation this year
to lift the oil and gas exploration ban, but so
far it appears that there is no interest from any
of the overseas investors in coming back to New Zealand.
And why would they because Labour's Energy spokesperson Meghan Woods
is already floating the idea of rebanning the oil and
gas exploration when they get back in our members who
(00:20):
are a very strong case for it at twenty eight
and see the case is being even stronger now.
Speaker 2 (00:25):
Oil and gas is not going to be a future.
We've got to be planning for a different future now.
Speaker 1 (00:29):
John Carnegie is the CEO of Energy Resources Ulta at
Owners with us.
Speaker 2 (00:33):
Now, how John, Hey, how are you doing ether Very well?
Speaker 1 (00:36):
Thank you. Have you heard of any interest from overseas?
Speaker 2 (00:41):
Oh no. And it's going to be a long term effort.
You know, Minister Jones talks about going out and talking
to the rest of the world saying we're open for business.
He's going to have to use the full extemes of
his charm in doing that.
Speaker 1 (01:00):
We haven't had any I mean these guys were elected
in October, which means that it's and they made it
very clear that they would be bringing back oil and
gas expiration. If nine months on from them, we still
haven't had any overseas interest. Do you really think we're
going to get any or was the ship sailed?
Speaker 2 (01:16):
I don't think the ship sailed at all. I think
what's happening is that investors, and this is both the
domestic the current incumbents we're producing guests to keep our
lights on now as well as potential offshore investors are
looking to wait to see what the actual changes are.
Speaker 1 (01:39):
So they want to see some assurance or some sort
of some sort of thing to make them feel confident. Yeah.
Speaker 2 (01:46):
Yeah, well, I mean I guess there are two questions
on that. So they are seeing material enough changes and
then I guess the other part to that is, well,
you know, what do we think will do the job
in terms of them? Are they material enough? Well, we've
only seen detail and pressfulness, so we have to be
(02:08):
slightly more patient. You see what comes through in the legislation.
Speaker 1 (02:11):
So John John what Shane Jones. Shane Jones seems to
have landed on the solution here being if the contracts
are long enough that will give some assurance to the
overseas investors. Is that the answer long contracts?
Speaker 2 (02:23):
Oh well, I mean I don't. I think he also
a month or two ago talked about bonds, but he seems.
Speaker 1 (02:29):
To have said he can't do that because he would
be there will be this, this government, this parliament, tying
the hands of a future parliament which can't.
Speaker 2 (02:35):
Do well well. A bond could be similar to a
long term contract. I mean, there is just a number
of mechanisms, but I think again we'd need to see
the detail. But the key thing is we think he's
on the right track. You know, these are long lived
their sets, you know they I mean take say we
(02:57):
had a discovery today, it could take up the keen
is before it's even producing. So that crosses how many
three four are electrical sites. That's why the sector will
need confidence. I want to see that they are going
to be kept whole, that the changes, the things, the
investments I said that they make today are still going
(03:18):
to be whole in ten twenty years time. And i'd
use Maui. The Marwi gasfield started producing in nineteen seventy nine,
so these are and still going and hopefully got a
while left to go. So you know, these are the
long lived assets. It's really important that we see and
(03:39):
we get investors back that they don't think that the
rules are going to change halfway through.
Speaker 1 (03:43):
This is how unhelpful are the likes of Meghan Woods
at the moment.
Speaker 2 (03:49):
Oh, Meghan has a particular particular view, and so she's
trying to change the nature of the nature of the debate.
I just think that we have to see the black
and white. Let's see the deals, Let's see the let's
see the legislation. Investors will make risks, adjusted decisions. I'll
(04:12):
look at the detail and they'll decide whether or not
to put money back in New Zealand or keep it
in Australia or put it somewhere else. And I guess
that's the thing that we are going to be looking
for that minister actually puts suitable arrangements in place to
give investors in long lived essets sufficient confidence.
Speaker 1 (04:34):
John, you are so much more optimistic than I am.
But I'm taking some heart from it. That's John Carnegie's
the chief executive of Energy Resources.
Speaker 2 (04:40):
Out here or for more from hither duplessy Alan Drive
listen live to news talks.
Speaker 1 (04:46):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio,
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.