May 2020
Energy and Resources election forum
PEPANZ is hosting an election forum in conjunction with Straterra in Wellington on Thursday 30th July. Confirmed speakers so far include:
- Minister of Energy and Resources Hon Dr Megan Woods
- National spokesperson Jonathan Young MP
- Green Party co-leader Hon James Shaw
- ACT Leader David Seymour
We will also be confirming a representative from New Zealand First shortly. The event will be MCed by Mike Munro with a wrap-up from energy analyst John Kidd.
The venue is TBC and dependent on rules around gatherings at the time. It will be free for PEPANZ members and a charge for non members.
We are also planning to hold an election-themed event for our members in New Plymouth with a guest speaker - stay tuned for more details on both events.
The role of oil and gas in rebuilding our economy
Careful changes to regulations could help New Zealand’s oil and gas industry earn increased royalties for the Government and aid the rebuild of our economy, according to PEPANZ.
“Our industry earns the Government on average around $600 million in taxes and royalties per year. There is real potential to grow this and help ease the pressure on the Government’s finances,” says PEPANZ Chief Executive John Carnegie.
PEPANZ proposals include:
- An enabling regime for carbon capture storage technology to be used in New Zealand
- RMA reform that doesn’t expand the role of local councils into assessing the climate change implications of projects (this should remain the role of central Government)
- Flexibility for existing exploration and production permits
- Workable rules for new decommissioning requirements
“The energy our sector produces will be vital to powering the export industries that will lead our recovery, such as food production. We think it makes sense for this energy to be New Zealand made.”
Industry updates
- Beach Energy has taken the first steps towards drilling the Wherry prospect off the North Otago coast this summer, seeking a discharge consent from the Environmental Protection Authority (EPA).
- OMV has been granted consent to drill up to 10 wells in the Maui field as part of its major redevelopment programme.
- Excellent media coverage on Seven Sharp and Stuff of OMV's successful Pohokura maintenance campaign.
- A dedicated webpage on decommissioning the Tui field has been created by the Ministry of Business, Innovation and Employment with the latest information on the project, including the tender process for work. The Government's Budget this year allocated $151 million for this work.
Parliamentary update
*Gas Amendment Bill
The Gas (Information Disclosure and Penalties) Amendment Bill has passed it's first reading and been referred to the Economic Development, Science and Innovation Committee. Energy and Resources Minister Megan Woods says the Bill will "strengthen the regulation-making powers in the Gas Act 1992 to provide for enhanced information disclosure requirements for the gas market, and to ensure that settings around enforcement and penalties, particularly for managing critical natural gas shortages, are suitably robust."
The Government must first receive a recommendation from the industry co-regulator the Gas Industry Company before making any new regulations. The overall aim is to "support New Zealand's security of supply and improve outcomes for energy consumers." PEPANZ's submission on information disclosure is here.
*National Party changes
New National Party Leader Todd Muller has committed to bringing back new exploration for oil and gas if elected this year. He has told media "I have a strong view the New Zealand economy needs to decarbonise over the next 20 to 30 years and I think that is not in opposition to capturing natural gas, which can assist to other countries to reduce their emissions profile."
The National Party's spokespeople on Energy (Jonathan Young MP) and Climate Change (Scott Simpson MP) remain unchanged, while Judith Collins is now spokesperson for Economic Development.
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