Hon David Parker
Minister of Energy

29 September 2006

Feedback wanted on oil emergency response strategy

The government is seeking feedback on what it proposes to do in the event of an emergency disruption to oil supplies.

Energy Minister David Parker today released a discussion document on the development of an Oil Emergency Response Strategy.

The Ministry of Economic Development is developing this strategy in consultation with other agencies and stakeholders to make sure the country is ready to respond to any future emergency disruption in oil supplies.

The discussion document outlines a proposed approach for allocating roles and responsibilities in the event of an emergency disruptions, sets out the measures that could be taken in response, and provides some guidance for how these could be implemented.

David Parker said an effective response strategy would help to minimise the effects of a disruption on New Zealand, and ensure that New Zealand is able to meet its obligations as a member of the International Energy Agency (IEA).

The demand restraint measures proposed in the discussion document ranged from voluntary to mandatory measures, depending on the scale of disruption.

David Parker noted that such measures would only be implemented in response to an emergency oil supply disruption.

“Voluntary restraints would be introduced first, moving to mandatory measures only if the severity of the situation requires it. The discussion document canvasses a fixed sales requirement (to discourage hoarding), a speed limit reduction, and rationing as potential mandatory measures. Car-less days are not favoured, partly because of limited success with their implementation in the past.”

Comments on the discussion document are invited by 10 November 2006, and can be emailed to oilsecurity@med.govt.nz.

Copies of the discussion document can be found at www.med.govt.nz/discussion/

ENDS

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