Oil Production - A Major Success Story

Oil Production - A Major Part Of Our Mineral Exploration

Milk and oil have been the saviours of the NZ economy in the past
few years they are our black and white gold. What is little
understood in fact is how the oil industry in particular has been
a resounding success story.

But the question is how to take it to the next level, both to
ensure NZ’s oil supply – becoming self sufficient as a long-term goal
– and earning much needed foreign exchange.

Oil and gas allowed NZ some growth during the difficult 1980s and
90s, but instead of maintaining a NZ Inc policy towards energy
the Lange Govt sold Petrocorp just as it was becoming a
significant player in the NZ and regional economy.

This ideologically driven short-sightedness meant the chance for
self sufficiency and a balance of payments surplus now, went
begging.

What is needed in today’s climate, is a healthy dose of forward
thinking. Global petroleum policies are driven by national
interest with the state taking a central role. Energy policy is
too important to be decided on an ad hoc basis with ideology as
its main driver.

This article from NZ Energy & Environment Business Week
http://www.nzenergy-environment.co.nz
shows how crucial oil has
become to the NZ economy. It is up to the Govt to take the
resource economy to the next level.

“Oil - The 4th Pillar For NZ’s Economy

Oil production is becoming a fourth pillar of the NZ economy,
behind dairy, meat and tourism. Latest figures show in 2008 oil
export earnings ranked third behind dairy and meat in merchandise
trade.

Crude oil and condensate production rose 57% to 2.5m tonnes in
the year to December 2008 from 1.6m tonnes in 2007. The value of
oil exports jumped 103% to $2.8bn from $1.4bn in 2007, thanks in
part to the peak prices for crude in international markets.

Although prices have since slumped, oil production looks set to
be a significant factor in NZ’s trading future. While crude oil
output from the Tui field off Taranaki is dropping as projected,
the Maari field commissioned this year is exceeding expectations,
and is producing just on 40,000 barrels a day.

This could build up even more if appraisal drilling of the nearby
Manaia structure yields additional production. The Kupe field is
due for commissioning later this year, and though it’s mainly a
gas field, it will also yield liquids both condensate and LPG.

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Global external trade figures issued by MFAT and Statistics NZ
show mineral fuel exports in 2008 accounted for 6.9% of the
country’s total exports. Dairy products accounted for 21.6% of
total merchandise trade and meat was the next largest at 12%.

Expressed in petajoule energy terms, 2008 oil production was
128PJ, ahead of the previous record high of 121PJ in 1997. Strong
flows of crude oil from the Tui oilfield and condensate from the
Pohokura wet gas field accounted for most of the increased
output.

Tui accounted for 65% of last year’s production, Pohokura 20.7%,
while Maui slipped to 8%.”

The oil hunt is just part of a “resources drive” NZ needs to push
forward as part of its race to catch up with Aust living
standards.

The Key Govt seems committed to making NZ a resources supplier if
at all possible, and if this means digging up Conservation land,
it will allow it – sensitively of course.

It is just to be hoped the agenda won’t be captured by nimbys who
seem to think thousands of hectares of windswept tussock can
bring the nation prosperity. In reality it’s what’s underneath
the land which counts.

ends

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