Government's Repeal of 2018 Oil and Gas Exploration Ban Passes Final Reading

Updated: 5 minutes ago

In a significant move, the government has successfully passed the repeal of the 2018 oil and gas exploration ban through its final reading in Parliament. This legislative change, initially scheduled for Tuesday night, was delayed due to a last-minute amendment aimed at altering the rules surrounding liability for the cleanup of decommissioned oil and gas fields.

Climate Minister Simon Watts, who stepped in for Resources Minister Shane Jones, highlighted the impact of the previous ban on the energy sector. He argued that the policy had sent a chilling message to potential investors, halting exploration efforts and contributing to current supply constraints and price volatility. "The ban sent a chilling message to the investment community, halting the very exploration that underpins our energy security," Watts said.

However, the move has not been without its critics. Labour's Megan Woods accused the government of demonstrating a lack of coherence in its energy policy. She stated that the repeal was a "very potent symbol of the shambles that this government is when it comes to energy policy" and criticized Prime Minister Christopher Luxon for being out of touch with the concerns of ordinary New Zealanders.

The bill passed with a narrow margin of 68 votes to 54, with all coalition parties supporting the repeal and the opposition parties opposing it. The debate reflects the deepening divide over energy policy and the balance between environmental concerns and economic interests.

As the government moves forward with this policy shift, the focus will be on how effectively it can address the current energy challenges while managing the environmental risks associated with renewed fossil fuel exploration. The outcome of this legislative change may have far-reaching implications for New Zealand’s energy future and its commitments to climate action.

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