Future Oil Sheikhs of Pacific? Yeah Right!

Fran O’Sullivan has a wildly optimistic take on New Zealand being a major petroleum exporter in the future.

In 15 years, New Zealanders could be the oil sheikhs of the Pacific if Government projections over the potential of our petroleum sector bear fruit.

Ministry of Economic Development estimates suggest the petroleum sector alone could generate over $30 billion per annum in export revenues by 2025.

Unfortunately I really don’t think the MED have an accurate handle on potential or possible oil reserves, and they are being wildly optimistic. The Taranaki basin has been well explored and even the relatively successful Tui oil field last year yielded just $24m in royalties and $31m in income taxes. Tui is just 12.5% owned by NZOG, so the rest of the profits flow directly overseas, and we continue to import all of our oil.

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