The International Association of Geophysical Contractors (IAGC), which represents more than 110 member companies worldwide from all segments of the geophysical and exploration industry, says our Government’s offshore exploration ban bill is flawed decision-making.
“The New Zealand Government’s introduction of a bill banning new offshore exploration is a clear demonstration of putting extreme environmental politics ahead of the sentiments of the people and economy of New Zealand,” it says.
“Seismic surveys are the gateway to energy investment, and the efforts of this Government will result in a disastrous outcome with the nation losing an estimated $7.9 billion.”
In a release circulated worldwide, IAGC says its members have invested in our country with an expectation that its laws would be reliable and regulatory regime stable.
“Changes contained within the proposed bill, to give backing to its political announcement some months ago, will not allow our members, nor New Zealanders, to fully realise the value of the more than US$70 million investment that the seismic industry has made in offshore New Zealand since 2013.”
The move has disrupted business certainty across sectors and is already affecting investor confidence in this country, it claims.
And, contrary to the Prime Minister’s assertion that with these proposed changes existing permits are protected and will be allowed to run their full course, “the holders of existing petroleum prospecting permits will not be able to realise returns on their investments,” it says.
“The Government’s action deliberately ignores these matters and the significant impact that the bill will have on New Zealand’s economy.
“Employment rates in New Zealand will decline, oil and gas supplies will be affected and there will be a consequential increase in oil, gas and electricity prices.
“We strongly condemn this action by the New Zealand Government and oppose this bill which undermines investment made in the country by companies already anticipating future exploration activities.”
The association also iterates the International Energy Agency’s stance that oil and gas will play a significant role in the world’s economy for many decades to come, and still make up about half of the world’s energy resources by 2040.