Resource strategy could hinder delivery of affordable and reliable energy to New Zealanders

The new Minerals and Petroleum Resource Strategy heightens the risk to affordable and reliable energy by failing to recognise the valuable contribution of New Zealand’s entire range of energy resources, says the Petroleum Exploration and Production Association of New Zealand (PEPANZ).

“We support the Government’s goals of lowering emissions and growing the economy to benefit all New Zealanders,” says PEPANZ spokesman Phil Rennie.

“However Boards need clear and consistent signals to make long term investment decisions, but unfortunately this document does not do that.

“We do not see how the confused signals, objectives and principles contained in the strategy can be operationalised in practical and meaningful ways.

“As demonstrated globally, lowering emissions and using the full suite of energy resources are compatible objectives.

“Even locally, as confirmed by the Interim Climate Change Committee, natural gas can be a major part of a just transition by replacing higher emitting energy sources and encouraging electrification by keeping the cost of electricity down and the lights on.

“Unlocking everyone’s innovative capability to lower emissions rather than picking different fuel or technology types as winners or losers should be the goal of a progressive resources framework.

“We welcome the signal to make ‘policy decisions based on the best evidence’ and ‘in a way that is fair, transparent, reasonable and proportionate’.”

“New Zealand needs evidence-driven policies to encourage investment and job opportunities. We look forward to seeing this in the forthcoming Crown Minerals Act changes.”