New Zealand reopens for oil and gas exploration after the country’s Parliament on Thursday voted to repeal a 2018 ban on offshore resource drilling.
Back in 2018, the center-left government of former Prime Minister Jacinda Ardern banned offshore oil and gas exploration to protect New Zealand from the effects of climate change and help it reach its net-zero goals.
The current coalition government has pushed for reversing the ban in a bid to strengthen New Zealand’s energy security and alleviate the cost of living crisis.
Last year, the government said it intends to propose legislation to amend the Crown Minerals Act and reverse the ban on offshore oil and gas exploration.
With the Parliament passing the amendment on Thursday, New Zealand is now reopening for petroleum exploration, Resources Minister Shane Jones said.
The Bill removes the ban on oil and gas exploration beyond onshore Taranaki, better aligns decommissioning settings with international practice, establishes a new tier of permit to undertake small-scale non-commercial gold mining, and signals the Coalition Government’s intent to reinvigorate investment in Crown-owned minerals, the government said.
“The ill-fated exploration ban in 2018 has exacerbated shortages in our domestic gas supply by obliterating new investment in the exploration and development needed to meet our future gas needs. Reserves are also falling faster than anticipated,” minister Jones said.
“This Government is pragmatic about the vital role natural gas will play in our energy mix in the decades ahead and we have set a course for greater energy security backed by our own indigenous reserves.”
Following the passing of the bill, operators will be able to apply for new petroleum exploration permits as early as September, Jones added.
“The ban sent a chilling message to the investment community, halting the very exploration that underpins our energy security and leading directly to the supply constraints and price volatility that we see today,” Climate Change and Energy Minister, Simon Watts, said during the debates in Parliament.
By Michael Kern for Oilprice.com
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