October 2020
Election update: what does it mean for the energy sector?
The 2020 election results have seen a Labour Government re-elected with enough of a majority to rule on their own, the first time this has happened under MMP.
At the time of writing it remains to be seen if any formal arrangements will be entered into with the Greens, and who the relevant Ministers will be.
Labour's energy policy is to bring forward the target of 100% renewable electricity to 2030 instead of 2035 and invest up to $100 million into consideration of a pumped hydro scheme in Otago.
Onshore Block Offers were scheduled to run into 2020 followed by a review. PEPANZ looks forward to working with the new Government on this issue.
Immediate legislative priorities will continue to be reform of the Crown Minerals Act and decommissioning rules. PEPANZ will continue to work closely with the Government on these issues.
PEPANZ will be publishing a post election briefing next month highlighting the important choices ahead for the wider energy sector. As part of this we will be writing to all new MPs and relevant Ministers to congratulate them.
Dr Joanna Breare to retire
PEPANZ Chair and Todd Energy Chief Executive Dr Joanna Breare has announced she is retiring from both roles in March 2021.
According to Dr Breare, "I have enjoyed more than 30 years in the petroleum industry and the time is now right for me to take the next step as I move into retirement knowing Todd Energy and PEPANZ are both in very good hands as we all work to transition into a low emissions economy."
PEPANZ Chief Executive John Carnegie says Dr Breare has been an outstanding leader and advocate for the industry.
"Alongside her outstanding career at Todd Energy, BP and Shell Todd Oil Services, she has always been a leader for the wider community.
"Joanna has been a fantastic Chair of PEPANZ. She is widely respected by politicians and officials and has always been strongly supportive of the team here at PEPANZ. We'll miss working with her, but no-one can begrudge her a well-earned change of pace.
"Welcome and congratulations to Mark Macfarlane who will suceed Joanna as Chief Executive at Todd Energy. We look forward to working with Mark next year."
Election forum and webinar
PEPANZ was proud to host two popular events this month: a pre-election forum in New Plymouth and a webinar with Andrew McConville, Chief Executive of APPEA.
Our New Plymouth event featured guest speakers Phil O'Reilly (Managing Director of Iron Duke Partners) and Dr Oliver Hartwich (Executive Director of the New Zealand Initiative). We discussed not only the election but also the major social and economic challenges facing New Zealand in the rebuild from Covid-19.
In our APPEA webinar we discussed the Australian Government's 'gas-fired recovery' and what that means for the industry, along with lessons we can learn from our Australian counterparts.
Energy Skills Science and Engineering Fair
The annual Energy Skills Primary Schools Science and Engineering Fair was a great success in New Plymouth last week.
The fair works at grass roots level with primary schools to encourage them to investigate science and engineering for our future, including renewables and non-renewables.
The overall winner of the Energy Skills Trophy was Charlie Maxner from Fitzroy Primary School for project on micro biofuel production.
EnergySkills is supported by PEPANZ and is committed to attracting, promoting and developing talent for the New Zealand Energy industry.
Above: Mat Quinn from sponsors Beach Energy with winner Charlie Maxner
IEA report shows positive global outlook for gas
Demand for natural gas will continue to grow strongly in Asia over the coming decades, according to the International Energy Agency (IEA)’s new World Energy Outlook 2020.
“This is further evidence of the major role natural gas has to play in the transition to lower emissions,” says PEPANZ Chief Executive John Carnegie.
“While Covid-19 has seen a temporary decline in demand for all forms of energy, the ‘stated policies’ scenario sees a 30% rise in global natural gas demand by 2040 concentrated in South and East Asia.
“Even under the most ambitious Sustainable Development Scenario, demand for natural gas remains steady and it becomes the equal single biggest source of global energy by 2040 at 23%, along with oil."
Also this month the World Energy Council has ranked New Zealand 12th in their global energy trilemma rankings.
Seismic survey update
New marine mammal sanctuaries off the West Coast of the North Island will come into force on 5 November following a decision by the Minister of Conservation earlier this month.
Prohibitions on seismic surveying and seabed mineral mining will apply in those areas, however exemptions are provided for activities associated with existing permits.
PEPANZ is surprised and disappointed at the decision, given that seismic surveys are already strictly regulated and there is no evidence of any permanent harm to whales or dolphins.
PEPANZ submitted in opposition to the prohibition but also advocated for a number of important amendments to improve workability. It was pleasing to see these points have been incorporated.
Member profile: Worley
Worley is a worldwide team of consultants, engineers, construction workers and data scientists all with one thing in common: they love to be challenged.
Worley works to solve the complexity of the energy, chemicals and resources sectors and has a proud history spanning over 40 years in New Zealand. They help customers to optimise the safety, reliability and value of their assets and resources throughout their lifecycle.
Every month we'll be profiling different PEPANZ members, highlighting the range of skills and services in our local industry.
A great example is the recent Depletion Compression project for OMV at the Pohokura gas field. Worley delivered the full project lifecycle on an EPC basis in an integrated team, ahead of schedule and under budget.
Worley's New Zealand team comprises 350+ people and 700 contractors in six offices, including New Plymouth. They are backed by world-class expertise, systems and processes of a global business spanning almost 50 countries and over 51,000 people.
PO Box 25259, Wellington 6146
