NZ Oil Industry Optimistic with New CEO and Quadrupled Budget
With a new CEO and a quadrupled budget, the New Zealand oil and gas industry is moving forward against growing opposition to modernized oil exploration, such as deep-sea drilling and hydraulic fracturing.
This is the first time for PEPANZ to appoint a chief executive in the person of former Z Energy commercial manager David Robinson. He will be assisted by PEPANZ long-time executive officer, John Pfahlert.
Last year's strategic review by PEPANZ resulted in the new changes, with its budget swelling from around $250,000 a year to around $1 million.
The announcement was made yesterday by the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
The most senior representatives of oil and gas company players in New Zealand, mostly chief executives, were tapped to fill the board of the revamped PEPANZ. As part of its commitment to changes, members of the new board will not be allowed to send alternates to board meetings.
In contrast, PEPANZ previous administration comprised of a hands-on committee of second-tier managers.
Further staff appointments will also be made to improve PEPANZ's capacity as a lobbyist and industry monitor, TVNZ reported.
Meanwhile, Canadian oil explorer TAG Oil optimistically told investors in North America that its untested east coast North Island exploration programme could reveal a "Texas of the South."
However, its partner in the programme, fellow Canadian Apache Oil, is more restrained in enthusiasm, and it even criticized TAG in an article in The Listener magazine examining the hydraulic fracturing, or "fracking" issue.
As this developed, Greenpeace and other environmental groups are actively organising against deep-sea drilling and fracking, as well as opposing coal mining proposals on the West Coast and in Southland, arguing they pose greater environmental threats than economic benefits, TVNZ reported.
Robinson said in a statement the level of current investment in New Zealand's oil and gas industry was "insufficient" relative to the existing 3,370 full time jobs and its $1.9 billion direct annual contribution to the New Zealand economy.
He said the industry will not take for granted the ongoing development of the petroleum sector.
"New Zealand is a long way from the rest of the world, our oil and gas is hard to find and by international standards we have a small local gas market. It's important to remember that we are competing with other countries for the explorer and producers investment dollar," he said.
On criticisms against unconventional oil exploration methods, Robinson said PEPANZ was committed to "the highest ethical and professional standards" in all aspects of the business - from health and safety, to environmental safeguards and stakeholder consultation."