New Zealand gas production freefall imperils our economic future

Ministry of Business Innovation and Employment (MBIE) data published today shows remaining petroleum reserves continue to diminish while gas supply is also forecast to dramatically decline. Unless action is taken to shore up investment, New Zealand faces serious economic, social and environmental consequences.

Energy Resources Aotearoa warns that without urgent investment in new exploration, New Zealand faces an uncertain and unaffordable energy future. Energy Resources Aotearoa Chief Executive John Carnegie says:

"More investment in new exploration is needed immediately to meet our energy needs. Natural gas is not just used to generate electricity. New Zealand’s industries such as dairy, methanol, and fertilizer are powered by affordable natural gas.

The alternatives are relying on expensive, higher emissions, imported coal or uneconomic and unreliable renewables to fill the gap. This is an avoidable and unwelcome situation.

"MBIE scenarios count on gas-fired power stations to firm the grid when renewables can’t, but where is the fuel coming from? The reserves data shows that its scenarios are unrealistic without immediate investment in new exploration."

"Natural gas is essential in stabilising our electricity system as we build renewable energy projects at scale. Despite our highly renewable electricity system, over nine per cent of the electricity we use comes from New Zealand’s domestically produced gas."

Carnegie says:

"Natural gas will remain vital to New Zealand’s energy mix into the future.

"New Zealand urgently needs bold policies that encourages investment in the exploration and development of our home-grown energy resources, only then can we ensure our ongoing energy security and resilience.

"Let’s not expose ourselves to liquid natural gas (LNG) imports at a time of an increasingly unstable geopolitical situation. The future to our economic wellbeing lies under our feet."