New Zealand Reverses Ban on Offshore Oil and Gas Exploration

New Zealand’s government has officially lifted the ban on new offshore oil and gas exploration, a significant policy reversal from the decision made in 2018 under former Prime Minister Jacinda Ardern. The controversial legislation was passed on Thursday by a narrow parliamentary vote of 68 to 54.

Highlights:

Minister’s Remarks:

Resources Minister Shane Jones, who once supported the ban while serving in Ardern’s cabinet, has now become its staunchest critic. He labelled climate change as “largely moral hysteria” and condemned the 2018 ban as “the worst energy and natural resource decision” in the country’s history.

“We are not going to corrode the productivity of our economy by denying ourselves access to fossil fuels,” Jones stated.
“The high tide mark of that heresy has come and gone.”

When asked about consultation with Māori and environmental groups, Jones responded unapologetically:

“I interviewed myself… I spoke to no climate group. I spoke to no Māori group. I engaged with the people who are investing and who will be the risk takers.”

Jones, who identifies as Māori, was previously a minister under Jacinda Ardern when the 2018 ban was implemented and supported it at the time. He now calls Ardern a “political fugitive” for leaving New Zealand to teach at Harvard.

Criticism and Opposition:

• Megan Woods, Labour’s Energy Spokesperson, criticised the move, stating:

“Restarting oil and gas is one of the most ridiculous things I have heard.”

• Steve Abel, Green Party MP, denounced the reversal as:

“Wrong-headed and archaic… It’s extraordinary they’re bringing this back after New Zealand was globally applauded for its foresight.”

Background:

Jacinda Ardern’s government banned new offshore exploration in 2018, emphasising a vision of a “clean, green and sustainable future.” She declared a climate emergency during her leadership and positioned New Zealand as an environmental leader.

However, since the ban:

• Domestic energy prices have risen by more than 10%.
• Households have reduced energy consumption.
• Transpower, the state electricity grid operator, warned in May of blackout risks in winter due to inadequate energy supply.
• Renewable sources like solar and wind have not scaled fast enough to offset declining gas output.

Despite acknowledging that new oil and gas discoveries may not yield energy for another decade, the government argues that restoring exploration rights is a strategic move to secure long-term energy security and investment.