Oil reserves research will add value to industry

Oil reserves research will add value to prospecting industry

The Government initiated research study into the potential scope for expanding New Zealand’s petroleum reserves should add to the attractiveness of the country as a prospecting region says the Petroleum Exploration and Production Association (PEPANZ).

PEPANZ Executive Officer John Pfahlert said today the availability of well researched data on the scope and scale of resources should lessen the extent of research that petroleum explorers need to undertake prior to a decision on whether to commit to drilling.

“A key factor will be the ease of access to this data for potential explorers. Exploration drilling is a costly and risky venture. Steps that reduce both cost and risk are welcome and the Governments initiative is therefore an encouraging development.

“GNS Science has been involved in a good deal of this type of research previously. Its record shows its respected ability to provide industry players with basic data that can assist them in evaluating commercial exploration decisions.

“Last calendar year the petroleum industry was New Zealand’s third largest export earner and in 2009 contributed $509 million in petroleum royalties to the government. This step should be helpful to the industry’s efforts to lift the discovery rate of new petroleum resources around the country.”

ENDS

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