Source: MIL-OSI Submissions
A new report is highlighting key energy challenges and opportunities facing New Zealand, in particular questions over our future supply of natural gas.
The publication “Asking the Burning Questions” is from the Petroleum Exploration and Production Association of New Zealand (PEPANZ) and highlights three urgent questions facing New Zealand:
1. What happens if our natural gas supply continues to decline?
2. What does a declining gas supply mean for our emission goals?
3. Do we have the right policy settings, given the changed environment for the oil and gas sector?
“In the absence of new exploration permits, we are now effectively in a closed and contracting system with rapidly shrinking natural gas reserves and shrinking opportunities to replace them,” says PEPANZ Chief Executive John Carnegie.
“Natural gas production is forecast to shrink 60% over the next 10 years which could increase costs for homes and businesses.
“This has implications for the many industries who rely on natural gas to invest and create exports and jobs. Using our locally produced energy is a much better option than relying on other countries through imported LNG.
“It would also hamper global efforts to reduce emissions if industries moved overseas and used coal instead.
“Renewable energy is great but it isn’t anywhere near affordable, reliable or practical enough yet to replace all the roles of natural gas.
“The answers to these questions will help us navigate an informed, evidence-based course towards a prosperous New Zealand with affordable, reliable and sustainable energy.”