With carbon dioxide concentrations in our atmosphere hitting 400 parts per million last week - the highest level in human history - the sun is setting on fossil fuels as a good investment
The New Zealand Government appears to have interpreted the fact that major offshore oil companies are suddenly interested in our oil reserves, tucked deep under one of the most remote locations in the world, as a sign that it is time to cash in. Ironically it is actually the clearest indication that it is too late to do so.
The $3 billion collected in royalties from oil and gas operations since 1970 in Taranaki. The $2.5 billion that oil and gas operations contribute to New Zealand's annual gross domestic product (GDP). The 5,000 jobs this supports. All these figures make doubling these numbers - by opening up the East Coast - economically enticing. But let's get them in perspective. Even if they were right, this would mean oil and gas exploration would employ roughly the same number of people in New Zealand as McDonald's.
Meanwhile, we currently earn $9.6 billion, almost double the dreamed of oil and gas income, from a tourist industry based on being '100% Pure'. A Ministry for the Environment report estimated that a sharp deterioration in perceived environmental quality could lose about 10% of that for a start. And then there's the damage to brands like Air New Zealand, Icebreaker and Les Mills, which all trade on the image of a clean New Zealand, and have all voiced concerns through the Pure Advantage industry group backed by their CEOs.
Then consider that the Gulf of Mexico oil disaster that involved Anadarko, one of the companies currently snuffling around the East Coast, was conservatively estimated by chief culprit BP to have cost US$40 billion (NZ$47 billion) in cleaning and compensation.