NZ plummets in energy investment ranking, Government happy

New Zealand has dropped from 14th to 46th in a ranking of attractiveness to energy investors. This isn’t surprising after the Government put significant limitations on oil and gas exploration.

‘Green’ or alternative energy prospects don’t seem to rate – I’m still unclear how we will meet al our energy needs if we transition away from fossil fuels completely as some want.

NZH:  Survey of top energy executives shows NZ has become a lot less attractive for investors

An annual survey of the world’s leading oil executives, which ranks the ease of investment into oil and gas producing countries, shows New Zealand has dramatically dropped down the list in terms of its attractiveness to investors.

The Fraser Institute, which has run the survey every year for 12 years, asks executives to rank provinces, states and countries according to the extent to which barriers to investment in oil and gas exploration and production are present.

New Zealand’s attractiveness to investors has dropped from the 14th highest country/region to 46 in the space of a year.

“This drop is based on poorer scores with respect to political stability, environmental regulations and protected areas and taxation in general,” the report said.

The Opposition is critical.

National’s Energy spokesman Jonathan Young put the blame for the drop squarely in the lap of the Government.

In April, Prime Minister Jacinda Ardern banned future offshore oil and gas exploration in New Zealand with the exception of Taranaki.

The ban took the industry by surprise because it was not part of any confidence and supply or coalition agreement and had not been explicitly promised by Labour during the election campaign.

According to some industry players surveyed in the Fraser Institute report, this was a key reason for the drop in New Zealand’s attractiveness.

“New Zealand’s move to ban new offshore exploration is a deterrent for investors,” one said.

“Jurisdictions that are openly hostile towards resource development, like New Zealand, cause investors to take their investment dollars elsewhere,” said another.

Young was not surprised by this and said the ban had “scared off” potential investors and would cost the economy tens of millions of dollars.

It’s not surprising – it looks like to an extent at least it was the intent of the ban, or it must have been at least a predictable consequence.

Energy Minister Megan Woods is unrepentant:

“We’re incredibly proud of the fact that New Zealand is leading the world on a managed, long term transition to a clean energy future.”

Hardly. The Government has limited fossil fuel exploration possibilities, but I have seen little of the other side of the equation – alternatives.

“International investors will consider a range of information when making decisions about where to invest, including the likelihood of a discovery and the likely value of any potential discovery.”

Climate Change Minister James Shaw was not surprised by the survey.

He said because oil and gas exploration was being phased out in New Zealand, there was not actually much more investment in the sector that was needed.

“So it’s unsurprising that investors in that industry would be saying that over the long term it’s not a place they wanted to end up.”

Shaw needs to come up with a credible path to sufficient alternative energy to replace fossil fuels, otherwise we will either have an energy shortfall, or will have to rely more on more expensive imports of fuel.

I’d love to see polluting fuels phased out, but I would also love to see a realistic and viable plan for what will replace them. At the moment I see little more than pie in the sky idealism.

Energy of dreams – ban them, and alternatives will come. Maybe.

 

57 Comments

  1. Blazer

     /  15th December 2018

    who cares!
    ‘Investors’……=who can we rip?
    Look at Mr Bridges…negotiating with Anadarko…a 40% of the PROFITS deal.What a muppet.
    Investors are meant to take risk,but most dealing with Govts want profits..guaranteed.Looking at the TPPA you can see this is the end game .

  2. “I’d love to see polluting fuels phased out…”
    Me too. I don’t expect though, to see any form of energy replacing the amount/volume we presently use. Somethings got to give and I reckon that’s our wasteful usage – not domestic, as in, turn the lights out when you leave the room and turn off the heated towel-rail, but community and industry wide reductions in energy usage. Low energy-wastage lifestyles are coming our way, ready or not.

    • I have seen no credible plan for how a significant reduction in energy use would look or work. I’m alarmed by the lack of a viable plan.

      I see that Tiwai Point has brought a potline back into service – that’s increasing energy use, not reducing it.

      • robertguyton

         /  15th December 2018

        That plan would be an extremely difficult one to compose, test and present to the public, given the “head-space” it’s/we’re in around the energy we have become accustomed to using. Any progress by Government will have to be bold and active; that is, it can’t wait and wait and wait till all the “is” are dotted and the “ts” crossed before doing anything, or it’ll be too late (if it isn’t already). You may be alarmed by not being able to perceive a viable plan, Pete, but the results of carrying on as usual is far more alarming. Wanna be a fast-follower, do you? Not good enough.
        Tiwai is using more electricity, yes. Big industry’s going to feel the pinch and fight like banshees over changes; see “Big Oil”.

        • “That plan would be an extremely difficult one to compose, test and present to the public”

          That’s also alarming – too difficult to explain, just believe that we have to change or else?

          There is no guarantee that carrying on as usual – evolving with technological advances – will be anything like catastrophic.

          Revolutionary change with no plan on how it will work or work out is a far greater risk.

          • robertguyton

             /  15th December 2018

            Pete, clearly we do have to change. Did you expect that change to be simple, straightforward and easy? Are you just a dreamer? “Revolutionary change with no plan” is something you just made up; probably welled-up from your fearful subconscious, and not anything like what’s actually going on – in other words, you are fantasising and projecting your fears onto your gentle readers. Not sure why.

            • Pink David

               /  15th December 2018

              Nothing to be afraid of comrades, just close your eyes and trust us, and it won’t hurt a bit……..

              Just to be clear; I am very afraid of people like you gaining totalitarian power. That is what you are demanding. We have plenty of evidence what happens when this occurs, and none to show your version of it will be any different.

            • Gezza

               /  15th December 2018

              This was the Khmer Rouge Pol Pot theory, wasn’t it? Back to a simpler agrarian lifestyle. No place for the intellectuals or the entrepreneurs or businesspeople.

            • Gezza’s rolled out the tired, hackneyed, boring, idiotic “Pol Pot” anti-Green bs. How dull. How predictable. How … boring.

            • robertguyton

               /  15th December 2018

              Pink David said: ” I am very afraid of people like you ”
              Fair enough. I’m terrifying. Feel the fear, PD and submit!
              (It’s for your own good).

            • Gezza

               /  15th December 2018

              Well I don’t know if any other authoritarian regimes had a back to the land philosophy, robert. Was thinking maybe Mao during the Cultural Revolution but that was more anti-intellectual and anti-regime-critic I think. They still carried on developing at least some technology.

              I’m not suggesting the Greens or the Green/Environmental movements are planning on deliberate mass murder but I can’t think of any other governments that have made the decision to go backwards in terms of technology and progress and energy-generation.

              There’s already ample incentive to be as energy efficient as possible to save on crippling energy costs. I have no doubt energy efficiencies will continue to be built in to the design of all future products and people will buy them for the financial savings alone.

              I really do think the Greens have a mindset of we have to cut back on our energy requirements. Well, it won’t happen. The world population is growing and energy requirements will grow with them. The focus needs now to shift to cutting emissions by whatever means but it won’t happen that our energy requirements will lessen.

              So bulk energy generation by better, cleaner, means is going to have to be a part of the future.

            • robertguyton

               /  16th December 2018

              “I really do think the Greens have a mindset of we have to cut back on our energy requirements. Well, it won’t happen. ”
              Yes, they do and yes it will.

            • Pink David

               /  16th December 2018

              “So bulk energy generation by better, cleaner, means is going to have to be a part of the future.”

              There are four sources of reliable power generation currently. Gas, nuclear, gepthermal and hydro. The Greens are against all of them. That tells a clear story, there goal is something other than what they claim it to be.

            • robertguyton

               /  16th December 2018

              Can you provide a link, any link to back your claim that The Greens are against geothermal?

            • Pink David

               /  16th December 2018

              Because it directly contradicts your vision of reducing energy production. That is the number one key principle of Green party energy policy.

          • robertguyton

             /  16th December 2018

            Can you provide a link, any link to back your claim that The Greens are against geothermal?

            • Pink David

               /  16th December 2018

              It’s written in the Greens energy policy. I’m sure you already have a copy.

            • robertguyton

               /  16th December 2018

              Can you provide a link, any link to back your claim that The Greens are against geothermal?

    • Pink David

       /  15th December 2018

      “Low energy-wastage lifestyles are coming our way, ready or not.”

      Poverty coming your way courtesy of Robert and the Green Party.

      • robertguyton

         /  15th December 2018

        I’m here to help, David. You can even weave your own casket from willow.

        • Pink David

           /  15th December 2018

          You are going to allow deforestation and shipping of timber from the northern hemisphere just for that? Very surprising given your claimed ideals.

          Isn’t flax a local, sustainable resource that can also keep the locals employed after you shut down all industry? It’s even low energy.

          • robertguyton

             /  15th December 2018

            Yes it is (we call it harakeke – ha-ra-ke-ke – rhymes with “cotton”). A “flax” industry in Southland? “Ridiculous”, I hear you ejaculate! “Monstrous”, “Can’t be done” ‘though it was, not so very long ago. Harakeke fibre – the very stuff of a sustainable future, but to Pink David, unthinkable – PD, you’re going to end up with egg on your face, but no one will notice, as you’re already caked with it now…

            • Gezza

               /  15th December 2018

              I can’t see any reason why flax fibre can’t be worked on and improved – but who’s running a plant producing flax products on an industrial scale down there now?

              I’m also keen on seeing something happening up North with hemp – but who’s investing in these ideas to bring them to industrial markets? Are there any Green investors putting their money and lobbying resources into these. And they’ll need energy to be cost competitive by moving to industrial methods.

              Shane may not have enuf nephs on sofas to do everything by hand.

            • robertguyton

               /  16th December 2018

              “but who’s running a plant producing flax products on an industrial scale down there now?”
              The Templeton boys at Otaitai Bush.

            • Gezza

               /  16th December 2018

              What are they making and are they exporting?

            • robertguyton

               /  16th December 2018

              Muka. What do you mean by “industrial” and why is it important that they export? There’s a market for much here in New Zealand. If the Templeton’s can do it, the industry can be developed as quickly as harakeke can be planted. Flax fibre is fabulous stuff, as is hemp fibre. Do you back the wool industry? Our the bell-rope in our local Anglican Church was made from flax fibre rope and only broke recently, after 100 years of use (I’m about to start my apprenticeship as a tintinabulist there).

            • Gezza

               /  16th December 2018

              Muka. What do you mean by “industrial” and why is it important that they export? There’s a market for much here in New Zealand.
              I mean, can you make warm Winter clothes out of it, for example? Something equivalent to cotton and woollen clothes. Why it’s important for export is to earn us foreign exchange, maybe secure investment, and if it can be made into worthwhile, valuable products that can compete with animal fibres and synthetics then one would think marketing it as such overseas would make greenies happy?

              If the Templetons can do it, the industry can be developed as quickly as harakeke can be planted. Flax fibre is fabulous stuff, as is hemp fibre.
              Ok, so why aren’t more people doing it? Is anybody doing R&D and looking to expand operations? Does it need to have particular environments (eg marshy land)?

              Do you back the wool industry?
              I back warm Winter clothes. Wool is a product that has stood the test of time and from time to time I hear it’s making a comeback against synthetic fibres.

              Can you tell me the range of products that are being made from flax? If you’re advocating it I’m assuming you’ve got some knowledge of it.

            • Pink David

               /  16th December 2018

              “The Templeton boys at Otaitai Bush.”

              The ‘Templeton boys’ are running a museum in an old shed. That might be your idea of a perfect future, but I doubt you will get many takers when they see the reality of backbreaking labour for 12 hours a day to produce 2 feet of rope.

            • robertguyton

               /  16th December 2018

              Gezza said: “I can’t see any reason why flax fibre can’t be worked on and improved ”
              I agree with Gezza. Pink David’s a grinch.

    • artcroft

       /  15th December 2018

      The Greens: Making Kiwis colder, sicker and hungrier.

      • Blazer

         /  15th December 2018

        making artcroft green with envy=a bad case of the…blues.

        • Kitty Catkin

           /  15th December 2018

          There’s a limit to how much energy people can save. I refuse to swelter rather than have a fan on and I won’t risk my eyesight with fluorescent bulbs. But I do turn everything feasible off at the wall (I won’t crawl under the bed to turn off the lamp and electric blanket)

          I am appalled by the number of places that have lights on when it’s unnecessary; a clinic I attend has huge windows and lights on all the time. Why ? I see this all over the place. Lights on where nobody would have them if it was their power bill. They are invariably fluoro bulbs and even those ghastly strip lights that should have gone out years ago. There will be some happy opticians and eye surgeons.

          When Waikato University began a campaign of turning off computers at the end of the day, they saved an extraordinary amount of money as well as power.

          • Kitty Catkin

             /  15th December 2018

            Fight like BANSHEES ??? Banshees wail to foretell deaths, they don’t fight.

          • robertguyton

             /  15th December 2018

            “I refuse to swelter rather than have a fan on”
            Thanks for that; got it.

  3. Oh, and yes, well done, the coalition Government, for at least signalling the direction to Big Oil, that is, show them the door. Next step, nudge them through it.

    • Kitty Catkin

       /  15th December 2018

      Ban all mining & drilling; let the bastards freeze in the dark.

      • Kitty Catkin

         /  15th December 2018

        The Greens won’t be happy until we live in caves and ‘drive’ Flintstone cars.

  4. Blazer

     /  15th December 2018

    Plenty of countries have oil reserves.What happened to efficiency?Do what you’re good at.

    • Kitty Catkin

       /  15th December 2018

      I have a fair number of tinned beans (like chickpeas) , but no matter how efficient I was, I would run out eventually.

      • robertguyton

         /  15th December 2018

        Grow
        Some.
        You’re welcome.

        • Kitty Catkin

           /  16th December 2018

          Not for one person. They are also one thing that’s not really worth buying loose and DIY, and nor are red beans. Lentils are. Lentils are much under-rated, I think.

          • robertguyton

             /  16th December 2018

            Dried chick peas from the Food Factory Shop $3:00 kg. Soak ’em.
            Lentils!
            Watch out, Kitty, you’ll be being accused of liking Morris dancing soon. And sandal-wearing.

            • Kitty Catkin

               /  16th December 2018

              Supermarket ones are often more expensive than the ready made ones at $1 a tin.

              Lentils take flavours amazingly well.

              I do wear sandals unless it’s too cold, but while I like the idea of Morris Dancing surviving for so long, I have no intention of doing it. Did the Moors ever really dance like that ?

              I am having a coffee break after pruning Fido [not his real name] with haircutting scissors. These were an investment, but it’s still not my favourite occupation. Fido is under the illusion that I do it for my own selfish pleasure and has the gall to expect treats afterwards for being made neat(er) and cooler.

  5. The Consultant

     /  15th December 2018

    “Low energy-wastage lifestyles are coming our way, ready or not.”
    Nope. Monbiot commented on this years ago:

    Simon Fairlie responds furiously to my suggestion that we should take industry into account when choosing our energy sources. His article exposes a remarkable but seldom noticed problem: that most of those who advocate an off-grid, land-based economy have made no provision for manufactures. I’m not talking about the pointless rubbish in the FT’s How To Spend It supplement. I’m talking about the energy required to make bricks, glass, metal tools and utensils, textiles (except the hand-loomed tweed Fairlie suggests we wear), ceramics and soap: commodities that almost everyone sees as the barest possible requirements.

    Are people like Fairlie really proposing that we do without them altogether? If not, what energy sources do they suggest we use? Charcoal would once again throw industry into direct competition with agriculture, spreading starvation and ensuring that manufactured products became the preserve of the very rich. (Remember, as EA Wrigley points out, that half the land surface of Britain could produce enough charcoal to make 1.25m tonnes of bar iron – a fraction of current demand – and nothing else.) An honest environmentalism needs to explain which products should continue to be manufactured and which should not, and what the energy sources for these manufactures should be.

    Hand-loomed tweed. That’s our Robert all right.

    A big part of the Deep Green plan will be to reduce the human population – hand-loomed underwear could play a big role.

    • robertguyton

       /  15th December 2018

      Hand loomed underwear doesn’t kill, you duffer! Chafe a little, sure, but that’s not lethal. Chaffing’s easily remedied with an application of pig-fat to the nether regions. You’ll be fine.

      • The Consultant

         /  15th December 2018

        • Kitty Catkin

           /  15th December 2018

          One needs fibre to weave anything…and it has to be spun, which is time consuming. Then it has to be woven so as to be usable and wearable. Unless the person knows what they’re doing, it will unravel. We could wear squares and rectangles, pinned with bone slivers, I suppose, but the idea of wearing wool in summer is unappealing. I can’t wear it, I am allergic to it.

          I don’t know where the fibre would come from if farm animals are banned.

          • robertguyton

             /  15th December 2018

            “which is time consuming”
            Time consuming??
            Can’t have that! Order a robot – NOW!

            • Griff.

               /  16th December 2018

              The Consultant .
              Modus operandi
              Dredge up some opinion piece or comment from a left wing commentator
              in the last hundred years then present it as the view of the entire left wing .
              Illogical dribble ….. Non sequitur.

  6. robertguyton

     /  15th December 2018

    What a thread, Pete – you sure can reel ’em in!

  7. Alan Wilkinson

     /  15th December 2018

    Drivelling idiocy from the Government and the Greens none of whom know anything about anything that matters.

    Hopefully the nation will survive despite them.

  8. PartisanZ

     /  15th December 2018

    Plummeting above our weight …. again … eh?