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Govt’s Oil & Gas Ban Delivers Another Economic Blow

Beach Energy’s decision to cancel its 2021 Canterbury Basin drilling program is another blow to our economic recovery, and a signal that the energy sector has lost confidence in New Zealand under this Labour Government.

“Labour undermined confidence in our energy sector with its decision in 2018 to ban new oil and gas exploration,” National’s Energy and Resources spokesperson Barbara Kuriger says.

“Officials warned the decision would cost billions in royalties, destroy thousands of jobs, and likely increase global emissions, yet Labour still ploughed ahead with its ideological policy.

“Shutting the door on the gas industry was short-sighted. A significant gas find in the South Island would allow industries presently reliant on coal to transition to lower-emissions fuel, while boosting New Zealand’s exports.

“At the moment, 39 per cent of global electricity production is from coal. Scenarios to achieve UN climate goals predict significant gas use throughout the remainder of this century as countries transition from coal to gas.

“Labour’s decision to pull the rug out from a key industry is looking even more short-sighted given the economic downturn from Covid-19 we are now facing. Gas exports could have helped our recovery from this economic crisis.”

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