30 August, 2012
New report shows benefits of ‘second Taranaki’
Energy and Resources Minister Phil Heatley has welcomed a new report on the economic benefits of future oil and gas discoveries released by the Ministry of Business, Innovation and Employment (MBIE) today.
“The report responds to the question ‘What if we could develop a second Taranaki in New Zealand?’
“For decades the oil and gas industry has operated successfully and safely alongside dairying and tourism in Taranaki. There is no reason the same can’t happen elsewhere, providing jobs and benefits at local and national level,” Mr Heatley said.
The MBIE Occasional Paper looks at export growth, GDP, royalties and regional development opportunities if another petroleum basin is developed in a similar way to the Taranaki basin. The paper is based on economic modelling undertaken by NZIER and BERL.
The modelling looks at a possible scenario and shows that export revenue could increase by $1.5 billion each year of oil and gas production, and that altogether national GDP could increase on average by $2.1 billion and royalties by $320 million each year over 30 years of basin development.
The expansion of the sector in a region could bring up to 5,500 new jobs, and stimulates growth in other sectors in that region when the development occurs.
“New Zealanders want to better understand what benefits development in the sector might bring. This analysis comes at an important time. It provides constructive input into the discussion,” the Minister said.
The Economic contribution and potential of New Zealand’s oil and gas industry report is available from www.med.govt.nz.