Government Repeals 2018 Oil and Gas Exploration Ban in Major Legislative Move

After a last-minute amendment to address concerns about liability for the cleanup of decommissioned oil and gas fields, the government's repeal of the 2018 oil and gas exploration ban has passed its final reading in Parliament. The legislation was originally scheduled for Tuesday night but faced delays due to the amendment, which shifted the decision-making power regarding decommissioning to the relevant ministers.

Climate Minister Simon Watts, who stepped in for Resources Minister Shane Jones, argued that the 2018 ban had sent a chilling message to the investment community. He stated that the ban had hindered exploration efforts and contributed to current energy supply constraints and price volatility.

Labour's Megan Woods, however, criticized the move, calling it a “very potent symbol of the shambles that this government is when it comes to energy policy.” She accused Prime Minister Christopher Luxon of leading a government out of touch with ordinary New Zealanders and more focused on serving the interests of multinational oil and gas companies.

The bill passed with a narrow margin of 68 votes to 54, with all coalition parties in support and the opposition parties opposing the repeal. This outcome reflects the deep divide in Parliament over the issue of oil and gas exploration in New Zealand.

While the repeal may open the door for new exploration projects, critics argue that the policy shift could have significant environmental and social implications. The change also raises questions about the government's long-term energy strategy and its commitment to addressing the climate crisis.

As the debate over New Zealand's energy future continues, the repeal of the 2018 ban marks a pivotal moment in the country's approach to fossil fuel exploration and its broader environmental and economic goals.