Hon David Parker
Minister of Energy

13 July 2007

Govt working to lessen imported oil dependence

A new report from the International Energy Agency that says world oil markets may come under increased pressure due to potential supply constraints within the next five years is all the more reason to lessen our dependence on imported oil, Energy Minister David Parker says.

"The Labour-led government is already introducing initiatives to reduce our reliance on fossil fuels for climate change reasons."

"Like so many climate change initiatives, there are other positive spin-offs – in this case, helping us cope better with fluctuating oil prices."

David Parker said the Labour-led government had now increased funding for public transport 1025% over its term, and was assisting the introduction of alternative fuels to petrol and diesel.

The Minister said the report was a wakeup call internationally, that more investment was needed on the supply side, and that more progress needed to be made on energy efficiency.

"Markets respond to forecast supply constraints – this news will encourage more oil exploration and production, and will provide further incentives to find alternatives to fossil fuels.

"Just this week we announced a major programme of exploration in the Great South Basin, and the Tui and Maari oil fields are now coming on stream."

However the Minister said that these developments would not delay New Zealand's progress to a more sustainable future.

"The government has also moved to bring in biofuels and is considering further steps to improve the efficiency of the vehicles on our roads. These are exactly the sorts of actions that are needed to lessen our dependence on imported oil."

ENDS

© Scoop Media