The government of New Zealand said on Sunday that it intends to lift a five-year-old prohibition on new oil and gas development, which infuriated oppositional politicians and environmental organizations.
The moratorium that has only permitted exploration for new petroleum on a few onshore fields in the nation’s North Island will be lifted by a bill that is expected to be introduced this year.
According to Resources Minister Shane Jones, the prohibition has undermined foreign investment and jeopardized the nation’s energy security.
“Natural gas is critical to keeping our lights on and our economy running, especially during peak electricity demand,” Jones said in a statement.
“When the exploration ban was introduced by the previous government in 2018… it also shrank investment in further development of our known gas fields which sustain our current levels of use.”
Greens co-leader Chloe Swarbrick said the government was “tipping oil and gas onto the climate crisis fire”.
“We can have a more sustainable and efficient economy by prioritising clean energy that works with the environment, not against it.”
According to Jones, the prohibition would be the first in a “suite of proposed amendments” meant to encourage investment. The industry that deals with minerals and petroleum produced US$1.2 billion in GDP between 2020 and 21.
He announced that the administration intends to streamline the application process for petroleum exploration.
The news was made one day after thousands of people protested against yet another government attempt to stimulate the economy in New Zealand’s major cities.
The “Fast Track Approvals” bill would expedite the consenting procedure for large infrastructure projects and allow for the circumvention of a number of environmental rules.
