Jul 31, 2025
New Zealand will resume oil and gas exploration in September.
New Zealand's conservative coalition government plans to reopen areas outside the onshore Taranaki basin to oil and gas exploration by September, reversing a ban imposed by the prior Labour government.
The Crown Minerals Amendment bill is currently going through parliament, according to resources minister Shane Jones, who attributed the 2018 exploration ban to worsening domestic gas supply shortages. Recent government data indicates that gas production has reached its lowest level in four decades.
Wellington has committed NZ$200 million ($118 million) in taxpayer funds to cover up to 15% of new project costs in an effort to revitalize the upstream sector. However, Taranaki basin operator Beach Energy reported in May that it had lost faith in the country's investment climate due to the exploration ban. The Labour party, the main centre-left opposition, continues to oppose new oil and gas production.
In response to energy supply challenges, the country is considering LNG imports and aims to double geothermal energy use by 2040.
Due to low hydroelectric inflows, coal-fired generation increased by 118% year-on-year in 2024 to compensate for the shortfall, while wind and solar generation rose by 22% and 62%, respectively.
The Crown Minerals Amendment bill is currently going through parliament, according to resources minister Shane Jones, who attributed the 2018 exploration ban to worsening domestic gas supply shortages. Recent government data indicates that gas production has reached its lowest level in four decades.
Wellington has committed NZ$200 million ($118 million) in taxpayer funds to cover up to 15% of new project costs in an effort to revitalize the upstream sector. However, Taranaki basin operator Beach Energy reported in May that it had lost faith in the country's investment climate due to the exploration ban. The Labour party, the main centre-left opposition, continues to oppose new oil and gas production.
In response to energy supply challenges, the country is considering LNG imports and aims to double geothermal energy use by 2040.
Due to low hydroelectric inflows, coal-fired generation increased by 118% year-on-year in 2024 to compensate for the shortfall, while wind and solar generation rose by 22% and 62%, respectively.