The Crown Minerals Amendment Bill Helps, But More Is Needed To Make A Difference

Energy Resources Aotearoa supports amendments to the Crown Minerals Act and the Government’s intention to revitalise New Zealand’s petroleum sector, but more is needed to restore investor confidence.

Chief Executive John Carnegie says the changes are a positive start. However, there are still further challenges to overcome, so New Zealand isn’t seen as a risky place to invest.

"Despite misinformation about our gas supply, New Zealand has potential in its petroleum basins. What we don’t have is appropriate regulatory and commercial policy settings to bring it to market."

Carnegie says stable and predictable policies in our petroleum sector are urgently needed to provide investor confidence.

"We need to choose whether we continue down the pathway of job loss, economic and social well-being loss, and energy insecurity, or achieve our economic prosperity and energy security while also achieving our long-term climate goals."

New Zealand has one of the world’s most renewable electricity generation systems, but renewable energy sources need help from thermal fuels to secure our energy supply.

Intermittent energy sources need predictable and reliable natural gas generation and fuel. Carnegie says this was clear during winter when gas and coal kept the lights on.

"With the new Transpower security of supply warnings for winter 2025, we will be in the same position again next year. Continuing with the status quo will worsen our environmental and climate action performance, as more coal will be used in the electricity system and our emissions exported to places with lower environmental standards."

New Zealand should use the resources under its feet to improve its economic, social, and environmental resilience. Meeting New Zealand’s growing energy needs is too important to be used as a political football while ordinary Kiwis pay the price.

"We have previously called for bipartisan support for New Zealand’s energy policy. Investment horizons and projects outlive election cycles. Short-term thinking must stop, and ensuring our health, wealth, and well-being must be prioritised."

Carnegie says political parties and industry need to work together to find ways to benefit all New Zealanders.

"We all want to achieve our climate goals. But there are no silver bullets; belief mustn’t be put above evidence. Listening and collaboration are needed to secure our energy future." 

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