New Zealand cushioned against oil shocks

New Zealand cushioned against oil shocks - Straterra

New Zealand is in an excellent position to withstand any future oil shocks, thanks to our abundant energy resources and in particular our lignite and geothermal resources, Straterra says.

Chris Baker, chief executive of the body representing the New Zealand resource sector, was commenting today on the report released in Wellington yesterday by Parliamentary researcher Clint Smith entitled “The Next Oil Shock”.

“The world has known for a long time there will be growing pressure on petroleum resources leading to price increases and associated price volatility,” Mr Baker said. “There is little new here, however, it is always useful to remind ourselves of likely future scenarios for energy supply and demand, as a call to action.”

“New Zealand is blessed with abundant lignite resources in the South Island and geothermal resources in the North Island. Our challenge is to make appropriate and efficient use of these forms of energy.”

“The lignite resource has been estimated to be in the order of 12 billion tonnes, equivalent to between 30 and 40 Maui gas fields and a world-class energy resource on its own.”

“According to the Institute of Geological and Nuclear Sciences, geothermal electricity generation, which stands at 500MW a year currently, could triple over the next decade, to supply 20 percent of New Zealand’s total electricity demand. With sufficient investment in exploration and research this growth could be substantially higher.”

“With enough foresight, New Zealand could be in a much better position than many other countries in the event of sharp variations in energy supply and prices,” Mr Baker said.

“The Government is developing a New Zealand Energy Strategy and is reviewing the Crown Minerals Act, in both cases to promote the environmentally-responsible development of resources, for the benefit of our country.”

“Through the NZCCS Partnership, the Government and industry are assessing carbon capture and storage and working with Australia to advance these technologies so that we have options for the development of our lignite resources.”

“Now is the opportunity to unlock the potential of these resources.”

ENDS

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