Working to grow New Zealand's petroleum producers
Submitted by the Petroleum Exploration and Production Association of New Zealand
PEPANZ, the Petroleum Exploration and Production Association of New Zealand is a trade association promoting and advancing the interests of petroleum explorers and producers in New Zealand.
Members come from all sectors of the petroleum industry including exploration, production, and associated trade and service companies. It represents private sector companies holding petroleum exploration and mining permits, service companies, contractors and individuals working in the industry. The membership is divided into full and associate categories, each with subcategories depending on a member’s participation/role in the industry.
Role
PEPANZ promotes the interests of members engaged in the business of exploring for and developing petroleum resources in New Zealand. This includes:
• Representing the interests of members to government and influencing key government initiatives by co-ordinating industry input into policy and legislative processes, including:
- proactive participation in the development of an overall NZ energy strategy
- influencing changes to environmental legislation
- ensuring government’s fiscal and regulatory environment is attractive for petroleum exploration investment
• Providing mechanisms for information sharing and dissemination
• Acting as a forum for discussion and debate on matters of concern to its members
• Promotion of industry best practice, especially in health and safety and environmental management
• Improving public, government and energy sector understanding, awareness and support for the petroleum exploration industry through effective, regular communication and consultation
Structure
An executive committee is elected from members and guides the policy decisions of the Association. The full time executive officer is based in the PEPANZ office in Wellington and coordinates its activities. Industry outcomes and key result areas for the future are set through strategic planning processes. This plan drives the activities and decision making of the organisation. The Association is funded by membership subscription based on membership status.
Website
The PEPANZ website is a key communications tool for members and those interested in the industry. It hosts publications, information on current issues, member details and other industry relevant information. To visit the website click here
Industry Overview
? oil and gas play a crucial role in the economy of New Zealand, making up about 65% of total primary energy use, and this is expected to continue in the foreseeable future;
? domestic production of oil and gas annually contributes approximately $3 billion to the national gross domestic product;
? levies and royalties on domestic oil and gas production contribute to the Crown (as resource owner) are expected to reach $700m in the next 2 years;
? in Taranaki, still the “hub” of New Zealand’s oil and gas production, approximately 1100 people are directly employed in the oil and gas industries, with up to another 5000 estimated as deriving indirect employment benefit from the industry;
? gas generates some 25% of New Zealand’s electricity requirements
? The National Government is strongly supportive of exploration for oil and, in terms of long-term domestic energy supply in particular, natural gas, and that there is no conflict between this position and Government’s position and policies for climate change response.
? there is a firm consensus of experts in both the private and public sectors that considerable oil and gas resources remain to be discovered, especially offshore including deep water frontiers that are within the feasibility range of development technology being applied internationally;
? the significant fields are the offshore oil fields of Tui and Maari, and the offshore gas fields of Maui, Pohukura and Kupe.
? There is significant onshore production of oil and gas from a variety of smaller fields, thought the Kapuni gas field is the longest producing, still in operation after nearly 50 years.
? New exploration initiatives are underway by Exxon Mobil in the Great South Basin and there are currently blocks offers being considered in two frontier offshore basins – Raukumara of the east coast of the North Island and off the Northland coast.
Current Issues
Climate change
Climate change is a major issue for the exploration industry. There is not yet an agreed comprehensive, global solution to the international problem of climate change. PEPANZ’s view is that any response should minimise any cost to the national economy, and should not be out of step with or in advance of responses from our major trading partners.
The Association supports the use of natural gas to generate electricity. Recent history has shown that total reliance on hydro electricity cannot be assured in dry years. Little credit has been given to the highly efficient combined cycle gas generation plant installed over the last few years, generators which are the most efficient in the world in terms of both emissions, as well as productivity.