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Jonathan Young - Energy and Resources

21 November 2018

New Zealand’s ranking as a place to invest has plummeted since the Government’s decision to ban new oil and gas exploration and we’re now behind the Republic of Congo and Bangladesh, National’s Energy & Resources spokesperson Jonathan Young says.

“In the Fraser Institute’s 2018 Global Petroleum Survey, New Zealand has dropped from 14th most attractive place in the world to 46th. We were among four countries out of the 80 tracked in the influential survey that fell the most from 2017.

“As National predicted, the ban on new oil and gas exploration has hurt New Zealand’s reputation with foreign investors. Megan Woods may see this as a reason to cheer but the ban harms our international standing well beyond the resources sector.

“Survey participants make that clear, saying: ‘Jurisdictions that are openly hostile towards resource development, like New Zealand, cause investors to take their money elsewhere.’ To offshore investors, a ban brought in without proper consultation doesn’t signal a stable operating environment.

“There is a financial and economic cost to being black-listed, as the International Geophysical Surveyors Association spelled out when the ban legislation was before select committee. Association members put their New Zealand investment losses at $100 million.

“New Zealand companies are finding it very difficult to secure offshore investment and joint-venture partners. The ban has already driven some industry players offshore and is likely to drive up electricity prices, according to Genesis Energy.

“The Government hasn’t explained how New Zealand will meet the gap between phasing out natural gas and bringing on enough renewable electricity to make up for it, without driving up prices to business and consumers.

“A National Government would repeal the ban, which fails to meet the Government’s objectives of meeting climate change targets, will cost billions of dollars and limits the ability for fuels like natural gas to be part of the transition to a low-carbon economy.”

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