Another View: Oil quest pays big dividends for NZ

James Stevenson-Wallace of New Zealand Petroleum & Minerals claims there will be no drilling off the West Coast of Northland.

This summer is looking to be a busy exploration period for our oil and gas industry, particularly with seismic surveying off the west coast of the North Island.

Survey activity helps build our scientific knowledge and understanding of New Zealand, including the potential for oil and gas in our deep-sea basins. Little is known about these basins and the surveys gather data that also help create a picture of the geology beneath our oceans. The information gathered is shared with the Government and in time is made publicly available. It can be very useful to researchers, including GNS Science, who use the data for fault line mapping.

Put simply, seismic surveying involves sending sound waves from a surveying vessel down through the water and into the seafloor, which are reflected back off different rock layers. There is no drilling involved.

There is no scientific evidence definitively linking seismic surveying to physical injury or stranding of marine mammals. Behavioural impacts may occur but vary, depending on the species, location, type of noise and other factors.

The Government takes a precautionary approach in this regard, focused on minimising any potential impacts. That is why the Department of Conservation and the Petroleum Exploration & Production Association of New Zealand developed a code of conduct for seismic surveying. It is considered one of the most rigorous in the world for protecting marine mammals and requires survey ships to have independent observers on board, watching and listening for mammals. If any mammals are detected within a 1km radius, all activity stops until they leave the area.

Today a range of independent regulators -- the Ministry of Business, Innovation and Employment, the Environmental Protection Authority, local authorities, Worksafe NZ, Maritime NZ and the Department of Conservation -- oversee exploration activity. Each contributes to the checks and balances that ensure petroleum activity is undertaken safely and responsibly.

Growing the industry here has real economic benefits. Last year the Government earned more than $370 million from petroleum royalties and levies. When company taxes are included, the Government earns about 42 per cent of a company's profits over the life of an oil field.

The industry also invests in local communities and creates highly skilled, well paid jobs and training opportunities. The average income in the petroleum and minerals sector is $105,000 a year, which is twice the national average.

The petroleum industry is historically embedded in Taranaki and that community has realised the benefits of the oil and gas industry. The province has the highest GDP per capita in New Zealand, the lowest unemployment and second highest employment rate in the North Island, and the fourth equal highest average household income in New Zealand.

The strength of the petroleum and dairy sectors has played a key role in achieving these outcomes.

With 17 other under-explored basins in New Zealand, there is real potential for more discoveries which, over time, could benefit other regions. The upcoming seismic work is an early step in petroleum exploration. There are no guarantees anything will be found but it is well worth looking.