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Oil Emergency Response Strategy updated

Hon David Parker
Minister of Energy


11 July 2008 Media Statement

Oil Emergency Response Strategy updated


Energy Minister David Parker today released the updated Oil Emergency Response Strategy (OERS). The Strategy allocates roles and responsibilities for action in an emergency petroleum supply disruption, and outlines the measures that are available to the government to respond to such a situation.

“The overall objectives of the OERS are to ensure that the effects of a petroleum supply disruption on New Zealand are minimised and that New Zealand is able effectively to meet its obligations as a member of the International Energy Agency,” Mr Parker said.

“Producing an updated OERS is one of the actions outlined in the New Zealand Energy Strategy (NZES) to address short-term oil security issues. Mid to long term energy and transport goals are covered in the NZES, the New Zealand Energy Efficiency and Conservation Strategy and the forthcoming update of the New Zealand Transport Strategy. Over time these initiatives will help reduce reliance on oil, thereby increasing New Zealand’s resilience to disruptions in the oil market.”

The OERS takes account of the key concerns of submitters on the discussion paper entitled Options for Government Response to an Oil Supply Disruption released by the government in September 2006. It provides a high-level overview of a range of measures designed to respond to varying types and degrees of supply disruptions.

The response measures will be developed in more detail as part of an ongoing work programme including drafting regulations where necessary. This work is expected to be completed in 2009 and will involve further discussions with stakeholders.

The emergency measures contained in the Strategy will only be considered in a severe oil supply disruption situation, and only when an industry response is considered insufficient. The measures will not be implemented where the primary purpose is to manage prices or to assist particular suppliers.

“The aim is to ensure that New Zealand is prepared for possible future emergencies,” Mr Parker said. “The government favours an initial industry response; however, if on the basis of industry and interdepartmental consultation a need for government intervention is required, this would match the scale of disruption.”

The updated Oil Emergency Response Strategy is available on the Ministry of Economic Development’s website at: http://www.med.govt.nz/oers

ENDS

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