November 2021
Time for sensible action on climate change
It’s time to simplify our climate action with proven tools to reduce net emissions, according to Energy Resources Aotearoa in their submission on the Government’s emissions discussion document.
“We support the goal of net zero, but the pathway proposed is becoming far too complicated and ambitious to actually achieve this,” says chief executive John Carnegie.
“A key problem is too much focus on reducing gross emissions which leads to costly and unnecessary policies. Net emissions is all that matters to the climate, and what the legislation requires.
“Proposing dozens of different Government strategies and hands-on actions across different sectors will just be impossible to deliver.
“Instead, the ETS is clearly the most effective tool because it effectively puts a price on emissions across nearly every sector. It lets people make their own decisions on how best to lower emissions, instead of picking winners and gambling on which future technologies might succeed."
What's the 'waterbed effect'?
A new report from Energy Resources Aotearoa is highlighting a fundamental change to the Emissions Trading Scheme (ETS) which makes nearly every other climate policy ineffective.
“The ETS now has a cap on total emissions allowed. This is great news, but it means that other policies like subsidies for e-vehicles cannot lower our total emissions – only shuffle around where they occur,” says chief executive John Carnegie.
“If fewer people drive petrol-powered vehicles, then emissions units are freed up which will then be taken by other users, such as factories.
“This is known as the ‘waterbed effect’, because pushing down in one area means emissions pop up in other areas. ‘Whack a mole’ is another good analogy.
“The Government deserves credit for this cap, because total net emissions are the only thing that matters to the climate. However, it means that every climate policy – both present and future - has to be re-assessed to check if they actually lower our total net emissions."
Decommissioning update
A new law on decommissioning oil and gas fields has passed through Parliament with good intentions, but is regulatory overkill according to Energy Resources Aotearoa.
“We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do,” says chief executive John Carnegie.
“It’s pleasing to see a few changes made at select committee stage, but many of the these changes go way above and beyond what’s required to protect taxpayers.
“There is still duplication and costly over-layering, like requiring financial security as well as payments into a decommissioning fund.
“Former permit holders can still be held liable for fields they transferred and no longer have any input into the management of fields. This is a fundamental change to business law, and like moving the goal posts after the ball has been kicked.
“From here we’ll work with officials to help the new regime work as well as possible.”
End of year events
As 2021 comes to an end we are proud to be hosting two panel events for our members and friends.
Tonight in New Plymouth is our panel event "Energy transition in the energy province" with an outstanding line-up of speakers, including:
- Glen Bennett (MP for New Plymouth)
- Arun Chaudhari (Taranaki Chamber of Commerce)
- Justine Gilliland (Venture Taranaki)
- Cristiano Marantes (Ara Ake)
- MC: Neil Holdom (New Plymouth Mayor)
On Wednesday 8th December in Wellington is our panel event with a year in review of 2021 and look ahead to next year's challenges. The panel includes:
- Andrew Jefferies (Chief Executive, New Zealand Oil & Gas)
- James Kilty (Chief Executive, Powerco)
- Mark Wynne (Chief Executive, Ballance)
- Neal Barclay (Chief Executive, Meridian)
- MC: John Kidd (Enerlytica)
Both events are followed by drinks and nibbles. Tickets are essential, limited and selling fast; for more details please email phil@energyresources.org.nz.
Energy Skills Industry Talent corner
This year Energy Skills is showcasing talented energy professionals and their pathway into our sector.
Our industry talent professional this month is Sam Westlake, a contract Process Operator at OMV’s Pohokura plant.
According to Sam, “What I enjoy most about being a process operator is that no day is the same.”
Sam’s first steps into the energy industry followed a conversation with Sheree from Energy Skills. This led to him quitting his job and undertaking the Process Operations Training course delivered by WITT and industry.
He successfully graduated from the programme in 2018 and was awarded the Methanex NZ Process Operations Training scholarship, administered by Energy Skills.
“You are continually learning about the processes, rules and regulations, operating procedures, the list goes on. It keeps you busy on your feet and mentally in the mind.
“You have to be engaged with the process and people around you to make sure that everything is safely done. Health and safety has always been a subject I’ve had a passion for and I feel that this is the perfect environment for someone like myself to learn and progress in the energy industry.”
Every month we'll be profiling different Energy Resources members, highlighting the range of skills and services in our local industry.
Member profile - MPC Kinetic
MPC Kinetic provides essential upstream services to the energy and resource industries.
The company is built on the premise of ensuring clients have the highest level of confidence while the team delivers their project – from concept through to completion.
Their breadth of expertise across the oil and gas, mining, renewable and water sectors is underpinned by two things – understanding and commitment.
They achieve this through effective execution of field-proven, multi-faceted construction capabilities that ensure large-scale resource developments are realised, and by innovating long-term, highly-efficient operation and maintenance solutions.
MPC Kinetic continues to play key roles in Australasia’s largest resource developments and as a result has forged strong, long-term working relationships with most leading resource sector companies.
