New report shows full value of having oil and gas industry in New Zealand

A new report by Taranaki’s regional development agency has found that New Zealand’s oil and gas industry and its supply chain employ 11,720 people –
up from 7,700 in 2010 - and injects $2.79 billion into the nation’s economy – an increase from $2.5b in 2010.

The Wealth Beneath Out Feet – The Next Steps, released to industry and stakeholders at a Parliamentary event today, updates and extends the findings of a 2010 report that defined for the first time the full extent of oil and gas employment and value.

Developed by Venture Taranaki, the report goes beyond the economic and employment impacts to include a detailed snapshot of the production process, regulatory environment, current activity, future opportunities.

“This report seeks to increase understanding and inform perceptions around the value of oil and gas not only to Taranaki, but to the whole New Zealand economy,” says Venture Taranaki Chief Executive Stuart Trundle.

“We have been able to include much greater detail around the benefits, going beyond qualitative analysis to measure ways in which the oil and gas industry in New Zealand makes a positive contribution to the nation.”

Since 2010 there has been unprecedented exploration activity, both on and offshore, and shifts in the public perception of the industry. Exploration interest has moved to a number of new frontier communities, and prospectivity remains positive around the new basins.

“Aspects such as the transfer of skills and innovation to other industries and beyond the traditional energy province of Taranaki all hold the key to leveraging our oil and gas resources,” Stuart says.

“The rigorous health and safety requirements of the industry, for example, could be applied to industries such as forestry to raise the bar in safety across the economy.”

“The report ultimately underscores that the resources most able to effect positive economic transformation are not those that lie deep beneath our feet, but the people who continue to apply leadership, innovation, and an entrepreneurial spirit to the industry,” Stuart says.

The report is intended to assist communities, decision makers and the industry
itself in their decision-making, with a view to maximising the economic returns for New Zealand.

“While the data captured in this report presents a point in time, and any commodity market is subject to price fluctuations, there are a number of strategic discussions needed between stakeholders to ensure that current and future generations will benefit from oil and gas.”

“From developing a blueprint for the industry to recognising the importance of the supply chain or leveraging innovation to building stronger links between region, there are opportunities to position oil and gas as a significant component of New Zealand’s economic future.”

“This report provides the background reading to those conversations,” Stuart says.

The report is available for download at http://www.taranaki.info/news/files/1405.pdf

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