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New Zealand’s oil and gas industry contributes $2.5 billion to the nation’s GDP and employs over 7,700 people, a new report has found.
The Wealth Beneath Our Feet - the value of the oil and gas industry to New Zealand and Taranaki, is the most comprehensive analysis of the sector and its supply chains ever conducted, and sheds new light on the value of the industry in both qualitative and quantitative terms.
The report has been prepared by the Taranaki region’s economic development agency Venture Taranaki, in partnership with New Zealand Trade and Enterprise and a range of industry stakeholders.
“This report seeks to change attitudes and perceptions around the value of the oil and gas industry not only to Taranaki, but to the whole New Zealand economy,” says Venture Taranaki Chief Executive Stuart Trundle.
“By identifying the benefits of the entire supply chain, this report elevates the importance of oil and gas to a similar level to the dairy or tourism industries.”
“It presents an opportunity to reflect on the immense value – both quantitative and qualitative – as well as the potential of the oil and gas industry.”
“The Government has called upon the nation’s business sector to lead economic recovery, and has set an export target of raising New Zealand exports by $100 billion over the next 15 years,” Stuart says.
“Oil and gas offers one of the few opportunities to realize this goal – a single well has the capacity to generate $1 billion – and we hope the report will give the Government an opportunity to reflect on the significance of oil and gas in comparison to some other sectors.”
“Achieving the sector’s full potential will require a new philosophical approach,” says Stuart.
“The existing model focuses almost exclusively on the attraction of the Exploration and Production aspects of the industry, as managed by Crown Minerals. But the report demonstrates that there is a need for a significantly broader whole of government approach to securing its future growth.”
The report also seeks stronger partnerships both within the industry and between the industry and local and central government.
“Expanding thinking beyond exploration to embrace the entire supply chain can only be achieved through a fully integrated industry model,” Stuart says.
“A collaborative approach to industry growth, both horizontally and vertically within the industry, is necessary not only to meet the challenges facing the sector, but to ensure that it can maximise future opportunities.”
“A realignment of government agencies charged with economic development must underpin this model if we are to expand oil and gas beyond a niche and into a core economic driver and contributor to the New Zealand economy.”
“We must adjust our resource allocation and long term thinking to achieve this, and the report is the first step in that journey.”
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