New Zealand – Govt to oil explorers: You pay

Government subsidies to boost exploration in the oil and gas sector are off the table in the face of record oil prices of US$111 ($135) and the vast profits reaped by the major oil companies in recent years, Energy Minister David Parker says.

Similarly, the Government will not be making any major priority for the potential development of massive low rank lignite fields in Otago or Southland or toward the technology development of “carbon capture and storage” methods, which are yet to be proven economically or technically.


Mr Parker said oil explorers had reaped the benefit of $20 million during the past three years from the Government because its permit agency Crown Minerals acquired offshore seismic data off East Cape in the North Island and the Great South Basin and made it freely available to explorers.

It had also relaxed royalty fees and granted tax incentives.

“That helped lower their risk. There shouldn’t be any need for subsidies with oil at US$100 per barrel.

New Zealand Herald