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Key forecasts oil and gas bonanza

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Key forecasts oil and gas bonanza

3News NZ

Prime Minister John Key (NZN)

Prime Minister John Key (NZN)

Oil and gas royalties could earn New Zealand $13 billion a year if exploration increases 50 percent on current levels, Prime Minister John Key says.

He's forecasting a bonanza in the face of opposition from Labour and the Greens who say land will be ruined and environmental protection measures must be strengthened before more wells are drilled.

"Each year about $400 million is earned in royalties and $300 million in company tax is collected," Mr Key said on Monday.

"That's just a small portion of the potential that the sector could deliver."

He says advice to ministers shows future royalty income from known oil and gas reserves could be $3.2b.

"That could rise to nearly $13b with a 50 percent increase in exploration," he said.

"The responsible and well-managed development of the country's oil, gas and mineral resources has the potential to create additional skilled jobs and contribute to increasing New Zealand's attractiveness as a place to live."

NZN

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Comments

26/07/2012 2:04:21 p.m.

george wrote:

Let us suppose that John Key is correct and Owen Glenn. If NZ was to discover serious resources then wouldn't that be a good thing? Look at the Arab gulf states. They have full employment, no taxes and economies that allow universal health care and education. Isn't that what everyone would ideally wish for. Yes we can be all high and mighty about it but get real - the world has a demand for these resources why not take advantage of this. How many other countries have this view? None. All those against mining exploration etc all still use pertoleum products every day - power, cars, plastics etc etc.

25/07/2012 11:42:07 a.m.

Funny_guy wrote:

@The left are scum

so... you want a oil spill and more CO2 and H2O in the air? Sounds like you want to find another earth for us to live on in the next 10 years. YAY!!!

24/07/2012 2:58:02 p.m.

The left are scum wrote:

Whaat a lot of wanky comments from leftie morons here. Go live in a cave if you want but let the rest of us live in the real and progressive world.
You wallies all drive cars and use petroleum producte every day - where do you think it comes from ? oh you are happy to let other countries drill and for you to use it ? ignorant hypocrites. No wonder normal Kiwis voted you leftie and greenie morons out.

24/07/2012 12:04:46 p.m.

jt wrote:

John Key is just trying to counter accusations that he has no ideas. So his new plan is to reinvent NZ as the fossil fuels' capital of the south pacific. I suppose his new slogan for NZ will be "100% pure hydrocarbons". Great thinking Mr Key...

24/07/2012 11:13:52 a.m.

Funny_guy wrote:

@Everyone, Stand-up Fight-back. Don't let the oil cover us in shame.

24/07/2012 9:45:40 a.m.

sam wrote:

More porkies !!

24/07/2012 9:42:31 a.m.

Paddo wrote:

I read the four comments below and thought this is why so many people leave New Zealand; there is always an excuse in this country to do nothing and we have failed to learn the lessons of history. A question for Graham would you like the government to run supermarkets? I think that if we are able to access some of the physical resources available to us we may all be better off? I think we do need to think how we can achieve that but none of these contributions are part of the debate. Funny_Guys contribution is name-calling, Bulgar sounds like a victim, PHI is rambling and Graham wants the government to do something. I think the challenge is to ask "What can I do? What difference can i make?"

24/07/2012 8:23:54 a.m.

Funny_Guy wrote:

We want a oil spill and more CO2 and H2O in the air. Choice!! That will be great Donkey, that is how you destroy the world. By The Way I'm been sarcastic.

24/07/2012 8:20:48 a.m.

Bulgar wrote:

If there is any "bonanza" you can be sure that ordinary people wont see any of it - it'll be for Key and his rich cronies.

24/07/2012 8:20:46 a.m.

phi wrote:

Who would believe this man? 33% of all elegable voters. When you have to sell profitable state assets to balance the books, you demonstrate a lack of real imagination to improve the lot of all Kiwis. Oh. nearly forgot, drill, mine and double the dairy cows. Oh and the cycle ways. which are totally underfunded. and require Local councils and communities to pick up the short fall. And then the irony of Central Government telling local councils to cut costs!