New Zealand's fragmented oversight of the oil and gas industry could result in potential 'fracking' problems slipping through the gaps.

Brazilian oil company Petrobras has handed back exploration licences it holds for deep sea oil and gas prospects off the North Island's East Cape.

Fracking has escaped the threat of a ban in New Zealand for now, but the days of industry self-regulation could be numbered after a report found large holes in oversight of unconventional mining by energy companies.

Oil and gas industry groups say they are not expecting a surge in fracking even though the process has been given a qualified tick by the government's environmental monitor.

Fracking should not be banned in NZ, a report says. PM John Key said if NZ uses the procedure, it must use 'world class standards.'

Environment commissioner not expected to call for moratorium opponents want on gas extraction technique.

Todd Energy report says mining technique is used safely in NZ.

Shell says the earliest it will consider drilling in the frontier deep water Great South Basin will be the summer of 2014-15.

As petrol prices hike to an all-time high, one town's motorists are filling up on the cheapest gas in the country.