John Carnegie: Energy Resources Aotearoa Chief Executive on households potentially needing to reduce gas usage

Experts have warned the Government that there isn't enough gas for both households and industry - meaning users could face increased prices and potential shortages.

The Green Building Council says households need to be encouraged to reduce their gas usage, freeing up supply for industrial exporters.

Energy Resources Aotearoa Chief Executive John Carnegie says work needs to be done to find a better solution.

"What we do need to do is look for solutions that actually protect all Kiwis' energy security and our economic prosperity, not just a small subset."

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Gas. The government's being urged to invest in reducing household
gas usage, basically forcing us or getting us to use
less of it at home in order to leave what
natural gas is left for the industrial users. The ideas
come from the Green Building Council. They think it's time
that households wean themselves off using gas for heating their
homes and their whole order and so on. In that way,
industrial exporters can have a little bit more to play with.

(00:20):
The Chief Executive of Energy Resources ults here or John
Carnegie's with us on this. Hey, John, is this the solution?

Speaker 2 (00:29):
Oh? Look, you know, we applaud the efforts and certainly
the intent. You know, we all want energy efficient and
low carbon houses, you know, so we love that. But
actually what we do need to do is look for
solutions to actually protect all Kiwi's energy security and our
economic prosperity, not more subset.

Speaker 1 (00:47):
Even if this was a solution, how would you do it, Like,
how would you actually encourage all of these households, hundreds
of thousands, potentially millions around the country to stop using gas?

Speaker 2 (00:58):
Yeah, well, let's a great question. I mean, I think
that the intent behind the policy is government subsidy and
so I guess from our perspective, you know, we're just
not sure it's the least cost solution. And actually, I
mean you you led into the in your intro. You know,

(01:19):
actually generally cost solution is about choices and not taking
options away. Actually, we're all about giving New Zealand does
all the options we can rather than taking them away.
And actually it won't surprise you that we think that
natural gas is pretty pretty important defeat in the mix

(01:41):
for everybody.

Speaker 1 (01:42):
John, what is the solution though, Because if there is
only so much gas to go around, we are as
households being prioritized to be the method X deal as
an example of that, right, and that's to the detriment
to the country because now we haven't got those export
earnings coming in from methin X. So how do we
how do we fix this?

Speaker 2 (01:59):
Well, the answer is more gas or gas exploration. Heather.
You know again, you know we need to we need
to keep the households, household connections into perspective, they are
really important, but we need gas for the industrials. Is
that cuts to the prosperity of all New Zealanders. So
more gas is going to be in everyone's best interest,

(02:21):
So you know, it's also worth while keeping a perspective
where we're talking about the gas used by households that
they use in terms of energy that it's called six
Petta duals of energy, and really that's just almost the
equivalent of what method X has just given up. So
even if you gave it back into the system, really

(02:42):
it doesn't make any net difference to our energy shortage.
We still have a shortage. We still have the gas shortage.
We have an electricity types electricity system. We need more gas.

Speaker 1 (02:54):
John, when was the last time somebody actually found more gas?

Speaker 2 (02:58):
Well, the last discovery was in twenty twenty. Actually, yes, indeed,
you know there are a number of myths that kind
of float around, float around the system. So twenty twenty
was the tut y discovery. That was a discovery made
by OMV. They yet to appraise it, so we're not

(03:18):
quite So you discover it and then you kind of
figure out what's there and what is there and how
much so we determine the balance between oil and gas.

Speaker 1 (03:29):
So we don't know how much gas is there.

Speaker 2 (03:32):
No, we don't. But you know, there was another in
field discovery by OMV Maui East, so you know, there
have been discoveries. I think the issue it seems to
be doing the rounds that people don't seem to take
into account is that the ban has meant that the
only exploration that's able to be undertaken is within the

(03:54):
existing permits. And there are certainly prospects before the ban
that people were incredibly bullshit.

Speaker 1 (04:00):
Tell me this though, prospect it tell me if they've
got if they found something at two to why in
twenty twenty, why didn't they go and have a look
how much there is and start digging for it, drilling
for it.

Speaker 2 (04:10):
Well, they had a work program already that has played
out since then. But also the band has created a
massive sovereign risk. So you know what it's done with
you Well, no, no, I wouldn't say that, but it's
has certainly made new investment news ending a lot harder
to justify.

Speaker 1 (04:32):
John, Thanks for that. Really appreciate that, John Carnegie, Chief
Executive Energy Resources out here, or it's the next time
you hear the labor party Megan Woods in particular, real
prime offender here saying nobody's found any goal any oil
gas for years. You can say, well, actually it's only
four years ago. But because of you lot, they don't
want to go and have another look at it. For
more from Hither Duplessy Allen Drive. Listen live to news

(04:53):
talks it'd be from four pm weekdays, or follow the
podcast on iHeartRadio