It is a long way from the exploration of a promising-looking gasfield and the development of a productive operation, and the outcome is far from certain. But the news that a well-resourced international consortium has committed $200 million to explore the Great South Basin, off the southeast coast of the South Island, is very welcome. Oil and gas production from wells in the Taranaki basin are already our fourth biggest export and generate hundreds of millions in revenue for the Government. The industry has made Taranaki one of the most prosperous regions in the country and created more than 3000 jobs. Finding another such productive area has long been sought. The areas with the greatest potential at present are in the Great South Basin and off East Cape. A successful result in either would be an enormous boost to our prosperity.
Yet one a Labour/Green Government would be against.
The search did not begin again in earnest until three years ago, when Dutch energy giant Shell along with the Austrian company OMV began to explore. Those two companies, along with the Japanese industrial conglomerate Mitsui, believe the seismic results are good enough to warrant the $200m commitment. Good enough means they believe there is 30 per cent chance of a commercial discovery.
30% is pretty high.
Green groups have predictably objected. Last year a meeting in Dunedin at which Shell was to talk about its plans with business owners was abandoned because of interruptions from anti-oil drilling protesters. Their objections are deeply misguided.
I would have thought Green groups would welcome NZ producing more of its own energy, rather than importing it from other countries.