Labour Leader Chris Hipkins Resists Luxon's Offshore Gas Push, Favors Renewables
Labour leader Chris Hipkins is awaiting the government's response to a recent review of the electricity sector before addressing Prime Minister Christopher Luxon's request for a bipartisan commitment to offshore oil and gas exploration. Luxon has written to Hipkins, asking him to support this policy for at least the next decade.
Hipkins has expressed his reservations about offshore oil and gas exploration, stating that it is not the solution to New Zealand's energy woes. He advocates for renewable energy sources instead. The last offshore oil and gas exploration permit was issued in April 2018 to OMV, an Austrian energy company, for exploration in the Great South Basin. However, Hipkins believes that even if oil and gas are found, it would take years before they start contributing to the energy supply.
The government has recently reopened applications for oil and gas exploration, with a faster route for awarding permits. Oil and gas prices have more than doubled in the past five years, with supply falling faster than expected. Luxon hopes that lifting the ban on offshore exploration will secure a stable fuel supply for New Zealand's energy transition. However, Hipkins does not believe Luxon's letter is a genuine attempt at building bipartisan consensus. He thinks that renewable energy could solve the country's energy problems more quickly.
Hipkins awaits the government's response to the electricity sector review before engaging with Luxon's request for bipartisan support on offshore oil and gas exploration. Despite the government's push for offshore exploration, Hipkins remains unconvinced and advocates for renewable energy as a quicker and more reliable solution to New Zealand's energy needs.
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