Andrew Jeffries: Echelon Resources CEO hits out at Labour's plans to reinstate the ban on oil and gas exploration if returned to power

An energy sector leader is slamming the opposition's plans to bring back the oil and gas exploration ban.  

Labour suggests renewable energy options should take precedence. 

Meanwhile, the Government's aiming to reverse the ban, with Resources Minister Shane Jones says natural gas is critical to keeping the lights on. 

Echelon Resources Chief Executive Andrew Jeffries told Mike Hosking gas can provide a backup for us. 

He says it provides jobs, tax revenue, and security. 

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Episode Transcript

Speaker 1 (00:00):
So on the oil and gas debate, Labor's announced that
if and when they return to power, they will reimpose
the oil and gas band. So what sort of message
does that send a potential license operators.

Speaker 2 (00:08):
We're opposed to the removal of the band on new
oil and Guess expiration off sure we would reinstate be again.

Speaker 1 (00:14):
So the CEO of Echelon Resources formerly New Zealand Oil
and Guess, Andrew Jeffries is with us on that's Andrew
morning to you, Good morning Mike. Mixed messages and does
that hurt our reputation internationally?

Speaker 2 (00:26):
Look, I think the obviously the message there from the
Labor Party wasn't particularly mixed. I think there. I think
it's an enormous shot in the foot for the country
because I think it will affect our international reputation. You
can't legislate the laws of physics, and if you're going

(00:49):
to have a mainly renewable power system, you really need
to have secure backup and gas can provide that backup.
So locally, gas can provide the backup for us, and
you know it can be our gas developed from our fields.
It doesn't affect our balance of payments in a negative

(01:10):
way provides jobs, it provides taxes, provides us with security.
So you know, in low cost cost energy, you can
import that energy from overseas, but then you're giving away
the jobs. We've got to find the money to pay
for the pay for the energy, and you're not raising
the taxes likely, so you're going to force down the

(01:33):
standard of living for the country.

Speaker 1 (01:35):
I noticed a twang of Australian there, Andrew, how is
it if you can explain to me, the labor government
of Australia gets it. The labor government or labor opposition
to New Zealand does not.

Speaker 2 (01:47):
Look I think I'm a engineered by background, Mike. So
I think this is going into the realms of psychology
rather than engineering, because look, the labor government in Australia
is representing it's it's the people who vote for it,
which are generally folks who want to have jobs, and

(02:12):
they are they and so they get it. Look, Australia
is six STIPs in coal. It definitely it needs a
transition and gas is the only means to do it.
So the world's largest battery, which is in Adelaide, looks
South Australia has done a great job of becoming renewable,
but it relies on electrons that are piped in from

(02:35):
other states from coal fire power stations to provide security.
And it's also got a very large battery. That very
large battery can hold Adelaide for about seven minutes, so
you know these are battery technology has not got to
the point where it can hold a grid for a
long period of time.

Speaker 1 (02:56):
So here's here's the problem up up until the crisis
we're facing at the moment in this country. You can
run theory until you blue in the face, and the
Labor Party did. But when mills are closing and jobs
are being lost because we literally cannot afford power, the
system doesn't work. I mean, it's that simple, isn't it.

Speaker 2 (03:15):
It really is that simple. You know, you need cheap
energy is at the root of our whole way of life.
There's just no way around it. We need that energy
for you know, for cooking, for cleaning, for running electric
motors and factories. And when you build a factory, you

(03:38):
not only need reasonably priced energy so that you can
run your electric motors, but you also need to know
that it's going to be there when you turn the
on switch, So you have to have that liability around
your basic energy supply, and there's just no way around it.
As I say, you can't legislate around the laws of physics.

Speaker 1 (03:58):
Exactly. Good on Andrew, she had very much. Andrew Jeffries,
whos Echelon Resources CEO, with us this morning. For more
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