NZ’s end to offshore licensing will have only local effects

April 23, 2018
Worldwide oil supply will suffer nothing because the government of New Zealand, a minor producer, is ending offshore oil and gas licensing.

Worldwide oil supply will suffer nothing because the government of New Zealand, a minor producer, is ending offshore oil and gas licensing.

And the climate will continue to change—because it always does—while revealing no influence attributable to the gesture.

Prime Minister Jacinda Ardern nevertheless proclaimed, “We’re protecting existing industry and protecting future generations from climate change.”

Opposition leader Simon Bridges of the National Party took a different view.

On Twitter, he called the government’s decision “a wrecking ball through regional NZ” and said it “doesn’t make any environmental sense.”

As environmental groups cheered, observers outside New Zealand shrugged if they noticed the news at all, correctly sensing they won’t be affected.

In the oil-producing region of Taranaki, though, the decision to end offshore exploration promised pain.

“Oil and gas make a significant contribution to the Taranaki and national economy, so we are concerned and disappointed,” Port Taranaki Chief Executive Guy Roper told the Taranaki Daily News. “We believe this decision will have long-term impacts on export returns and associated jobs in Taranaki.”

Richard Ellis, managing director of Fitzroy Engineering, New Plymouth, called Ardern’s announcement a shock.

“We didn’t really see it coming,” he said during a visit by Bridges. “There was no real consultation with us. It certainly makes us think about our future.”

Fitzroy Engineering employs 400 oil and gas specialists, the newspaper reported.

“The skillsets we have here are oil and gas skillsets, and unless there is another type of industry which requires these types of guys, these guys will be gone from the industry and gone from New Zealand,” Ellis said.

He added: “You don’t get these skills in renewable energy.”

Contrary to Ardern’s assurance about protecting existing industry, an oil and gas business unable to explore will atrophy.

The government thus will impose local sacrifice to pursue global benefits too small to detect.

New Zealand holds its next election in 2020.

Bridges promises to reverse the licensing ban if voters return Nationals to power.

(From the subscription area of www.ogj.com, posted Apr. 13, 2018; author’s email: [email protected])