New Zealand Prime Minister Jacinda Ardern | Via Facebook
New Zealand Prime Minister Jacinda Ardern announced last Thursday that no further offshore oil and gas exploration permits will be issued by the Government, but this doesn’t mean activities will end overnight – not by a long shot.
Last month, PM Ardern was put under pressure after an open letter was published urging her government to end oil and gas exploration in New Zealand. The letter was a reaction to an announcement in December last year that she would allow new permits for offshore oil and gas drilling on a case-by-case basis.
While new permits may be no more, the decision will not affect activity related to current reserves or the potential discoveries from current exploration permits.
31 oil and gas exploration permits are currently active, with 22 of those relating to offshore activities. Some don’t expire until 2030 and could go an additional 40 years under a mining permit.
“This is a responsible step which provides certainty for businesses and communities that rely on fossil fuels,” said Ms. Ardern. “We’re striking the right balance for New Zealand – we’re protecting existing industry, and protecting future generations from climate change.”
While the latter claim may have been somewhat of an overreach, the announcement was still a positive step.
Onshore permits will still be issued for the next three years, but then that situation will also be reviewed.
In a video by Ms. Ardern just minutes before she met with press, the NZ PM stated the long lead time will allow for an orderly transition.
“”..now it’s our job to plan for the future. If it’s inevitable, we have to face up to that inevitability and get on with deciding how we will make sure we have got that transition plan in place and what the future of clean, green, carbon neutral New Zealand looks like.”
From Oil To Solar Panels?
Coalition partners the Green Party called it a “historic day” for action on climate change and said expertise from the fossil fuel sector can be turned to more environmentally and economically sustainable enterprise.
“The Prime Minister talked about applying skills from the oil industry to mining silica to use in solar panels,” said James Shaw, Green Party Leader.
The relationship between the two wasn’t clarified – from an extraction viewpoint, mining silica is more closely related to open pit coal mining. It’s generally the lesser of the evils environmentally speaking and the silicon in solar cells can be recycled – the same can’t be said for coal.
Southland in New Zealand’s southernmost region boasts silica resources with a reported average of 99.37% purity and an estimated resource of 1000 million tonnes; which would certainly make a lot of solar panels.
Mr. Shaw cited other more relevant examples where skills could be transferred, such major water infrastructure upgrades.
“That’s work that needs expertise in drilling, pipe construction and reticulation, and that’s expertise that exists in the oil industry,” he said.
Jacinda Ardern has previously committed to 100% renewable energy by 2035 and net zero carbon emissions in New Zealand by 2050. In 2016, prior to Ms. Ardern’s ascension to the nation’s top job, 85% of New Zealand’s electricity was generated from renewable sources.
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“In 2016, prior to Ms. Ardern’s ascension to the nation’s top job, 85% of New Zealand’s electricity was generated from renewable sources.”
So how do they manage grid stability?
Are both islands interconnected with a huge link?
The North and South Island are interconnected with 1.2 gigawatts of transmission capacity and providing grid stability is not difficult. New Zealand’s large amount of hydroelectric capacity makes it relatively easy. I will mention it’s not technically difficult to provide grid stability in a region without hydroelectricity and a large penetration by intermittent renewables. As prices have fallen it’s no longer economically challenging even if externalities are ignored.