Explore, suck it out, and sell sell sell

Photo: CHRISTEL YARDLEY / FAIRFAX NZ

Spending more than $110,000 of taxpayers’ money to try and attract big oil companies that have already turned their back on mining in New Zealand is a “total waste of money”, Green MP Gareth Hughes says.

Figures sent to Hughes by Energy Minister Judith Collins reveal $111,331 was spent by the Government on marketing and promotions for the most recent block offer for oil exploration last year.

Of that figure, $42,000 was spent on overseas travel, $3200 on local travel and the rest on marketing.

Hughes said given only one permit was awarded in Block 2016 to New Zealand company, Todd Energy, it defied belief that so much money would be spent on attracting offshore companies.

Interesting to see the Green party arguing that it is the lack of return on investment that should see us back out.  That’s as unique as it’s deceitful.   

[Judith] Collins said while only one permit was awarded last year, “significant exploration in New Zealand has continued during 2016 and 2017.

“Exploration activity is long-term and the market works in cycles. Fifteen permits were granted in 2014 – including to major international companies like Chevron – and nine permits were granted in Block Offer 2015. The work from these permits will continue for many years to come.”

She said a major drop in the international price of oil in 2014 means the “response to petroleum permit tenders globally has been subdued compared to previous years”.

“The global petroleum industry is now showing signs of recovery, which should bode well for future Block Offers, in time.”

Hughes said that was the “same old spin, different minister.

Hughes argued the money would be better spent “supporting clean energy.

“Instead of reliving the 1960s we could be looking to the future.”

Collins said petroleum production made a “significant contribution to the New Zealand economy”, with $3 billion in royalties to the Crown over the last nine years.

Explore, suck it out, and sell sell sell.  No use sitting in the ground.

And we all know that Gareth and his Green pals can’t get through life for a single day without relying on oil-based products.

What do you think 3D-printers are made of Gareth?

 

– Stuff

 


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