New Zealand Bans All New Offshore Oil Exploration
Here’s good news from the Kiwis: Though existing offshore oil exploration will be grandfathered, the New Zealand government will grant no new permits for this activity. Needless to say, conservation and environmental groups regard this as a huge win in the battle against climate change.
Those of us who favor a sustainable future for humankind recognize that government policy plays a key role. That’s the disturbing thing about what’s happening in the United States: it’s not that we have a bad energy policy, rather it’s that we don’t have one at all. How hard would it be to say that we’re moving to clean, safe, low-carbon energy at the maximum feasible pace?
Craig,
New Zealand is a small nation of 4.7 million people. NZ is a fully developed country with advanced infrastructure and possessing an abundance of Geo-thermal power and hydro-power.
The NZ government hold power as a shaky coalition of centre-left political parties, with “green” Parliamentary support. Since the election of the current NZ government, NZ export income has decreased to under $NZ 53 billion, causing a drop in a GDP of just under $NZ 200 bn.
The decrease in NZ growth is attributed to the High costs of imported gasoline and diesel affecting the main export earners, Meat (Beef and Lamb), Dairy, Dairy Products, Wood,
Wine and Fish.
NZ has no heavy manufacturing industries.
The ban on new offshore oil and gas permits will not affect existing permits or onshore natural gas and oil exploration, but will effect foreign investment and government revenue.
The current Government’s popularity has waned since the last election, and the opposition party which is ahead in the polls, would reverse this policy upon gaining government.
The main critic’s of the Adern led coalition decision warn the decision to stop offering new oil exploration permits will cost the Crown billions in revenue with little impact on New Zealand’s greenhouse emissions.
More problematic for the government is NZ officials were not consulted in the decision making process. Cabinet has made no decision on ending oil exploration, no ‘white papers’ or studies performed, the decision was purely made on the basis of a political agreement in order to secure support from the Greens to achieve a parliamentary majority for the minority government.
Official advice from the Ministry of Business, Innovation and Employment warns that banning the offering of new offshore oil permits could potentially increase global greenhouse emissions, while also having a chilling effect on investment elsewhere in the sector.
The officials also pointed out “The transfer of production to other countries that have higher emissions footprints may result in an increase in global greenhouse gas emissions”.
The conservative opposition has loudly denounced the decision, as being typical of a week government being forced to cave in to the ideological demands of small minority, just to stay in power.