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Greenpeace is accusing the Government of economic incompetence over its plans to open New Zealand up to deep sea drilling.
The Government today released its energy strategy which claims deep sea drilling off New Zealand's coast will bring in jobs and billions of dollars.
While many fear an oil disaster could damage New Zealand's clean, green image, the Government says it is worth the risk.
"We know we have significant oil gas and mineral potential, we know that brings significant wealth," said Acting Energy and Resources Minister Hekia Parata.
The energy strategy report says New Zealand is set to earn $3 billion from oil and gas work that is happening at the moment.
It claims that figure could quadruple in the future with more drilling.
"That could increase to $12.7 billion with future discoveries, which would help pay for schools, hospitals, broadband and roads," Parata said.
"We certainly want to grow our economy, we certainly want there to be better jobs and higher incomes."
But Greenpeace says there is more money to be made in clean energy - like geothermal.
"What we're doing is using tax payers to subsidise international oil companies," said Greenpeace's Simon Boxer.
"We're turning out back on clean energy companies in New Zealand who could actually be earning $20 billion dollars a year."
Green Party Energy spokesperson Dr Kennedy Graham has also slammed the Government's energy strategy claiming it "is backward-looking".
"Instead of developing a plan to transition away from fossil fuels, they plan to make New Zealand a fossil-fuel exporter by 2030.
"To plan to be a net exporter of oil two decades from now, while identifying climate change as one of the two main challenges in energy, demonstrates a startling lack of insight, or candour, he said"
Graham said Denmark has adopted a plan to be fossil fuel free by 2050 and New Zealand can do the same.
"If we were to secure just 1% of the global renewable energy market in the next five years, we'd create a $5.8 billion new industry here, with 60,000 more green jobs."
Renewable sources
The Government says it is focused on renewable energy like wind and water and is sticking by its plan to have 90% of electricity generation from renewable sources by 2025.
But it is also making it easier for oil companies to drill in New Zealand, by changing the way it issues permits to oil companies. At the moment the system is first in, first served.
The Government will soon choose big blocks of land and sea to open up to tender for oil companies.
"The proposed approach would allow us to focus on areas of greatest potential, and will be more transparent for the public, who would know which areas are available for permitting and which are not," Parata said.
"Communities and iwi would have an opportunity to comment on the proposed areas to be opened up."
Austrian oil giant OMV told ONE News it welcomed the plan.
"It is moving to a process that is worldwide accepted," said Peter Zeilinger from OMV.
"I think it's much closer to what other countries in the energy market are doing as well."
Renewable energy target
Parata said New Zealand's renewable energy levels were the second highest in the OECD, behind only Iceland. In 2010, 74% of electricity came from renewable sources.
She said the Government needs to use those resources - hydro, wind, geothermal, oil, gas and minerals - to get where the government wants to be in less than 15 years.
Parata said New Zealand needs a range of renewable and non-renewable energy sources to meet its energy needs in the immediate future.
"Fossil fuels will continue to play an important role in the global economy. Around half of the energy we currently consume is from petroleum,'' said Parata.
'Picking winners'
Energy analyst Bryan Leyland told TV ONE's Breakfast that the Government setting up a firm strategy is all about "picking winners".
"When the Government tries to pick winners, they can also get it wrong because we can't foretell the future. We don't know what technologies are going to come up in the future. We don't know what might happen."
Peter Hardstaff, WWF Climate Change programme manager told Breakfast he thinks "it's good to see the Government set a target".
But Hardstaff said the draft strategy felt like "a missed opportunity".
"What I would like to see is not just setting a target but saying how we are going to achieve this renewable energy future," he said.
There is a 40-day working period during which people can make submissions on the proposed change to the permitting system.
Parata hopes the law will be changed next year.
What do you think? Have your say on the messageboard below.
Add a Comment:
Post new commentJay1 said on 2011-08-31 @ 11:14 NZDT: Report abusive post
@MaryB: who says renewables can't replace fossil fuels? They could, if the Government stopped spending millions on handouts for the oil industry, rather than supporting new renewables technologies. Climate change means we have to make a real effort to get off oil, right now .. .deep sea drilling has no part in that effort
MaryB said on 2011-08-30 @ 14:00 NZDT: Report abusive post
I agree that the world needs to reduce its carbon output and should use substitutes where we can but it is naive to suppose that we can replace oil in all cases. Electric cars will be recharged in most instances from electricity generated by coal/oil/nuclear. NZ is a long way from the rest of the world and up until now, I haven't heard of a real option to aviation fuel to power 747s. Yes, there are biofuels but they are in their infancy and currently use more energy to produce than they provide.
exitlane said on 2011-08-30 @ 13:13 NZDT: Report abusive post
Royalties are only a small part of the equation. The cost to NZ of importing ever more expensive oil could rise by 2015 to $10 billion which is equal the cost to Govt of the Christchurch earthquake EVERY year. No new oil, even if discovered and exploited will come on stream for at least 5 years more likely 10 years. meanwhile the oil crunch for prices and supply is NOW ... see... oilshockhorrorprobe.blogspot.com for more
philipmcc said on 2011-08-30 @ 12:44 NZDT: Report abusive post
This simply confirms what we already know - this government is stuck in an old paradigm. That is - look after the economy first and make other things fit around it. The world situation, especially climate change, requires a much more radical approach. The evidence is growing that it is possible to think about and plan for a healthier environment first, which then creates a different kind of economy. But this government is not capable of doing it.