Yahoo Finance New Zealand to lift oil drilling ban amid blackout fears in blow to Starmer
New Zealand was on Saturday night expected to revoke a ban on drilling for oil and gas amid fears of blackouts, as Labour plans to impose a similar crackdown on the North Sea.
The country’s coalition government is preparing to invite energy companies to resume exploration in the three major offshore fields that supply most of its gas.
It comes after National Grid operator Transpower was last month forced to warn families to limit their electricity usage to avoid a shutdown during a cold snap.
The decision to reverse the ban, made by resources minister Shane Jones, will be a setback for green activists and likely to be regarded as a blow for Labour after Ed Miliband has repeatedly pledged to halt new drilling for oil and gas in UK waters.
However, New Zealand’s change of course has been cheered by industry leaders. John Carnegie, chief executive of trade body Energy Resources Aotearoa, said: “We welcome a return to sensible, pragmatic policy settings that fairly manage the upstream oil and gas sector to the benefit of all New Zealanders.
“New Zealand faces an energy shortage which threatens our electricity system and the competitiveness of our exporters.
“We now urgently need to attract further investment in exploration and production to keep the lights on, our houses warm and business humming.”
The exploration ban was introduced by Jacinda Ardern, who announced her resignation as New Zealand prime minister in early 2023. In an election that autumn her party was thrown out of office and replaced by a right-wing coalition.
Mr Carnegie said the policy had driven investors away, destroyed jobs and created energy chaos.
British politicians should see New Zealand’s plight as a warning, he said, adding: “If you cut off your own supplies then you push up prices and destroy jobs … Our politicians wanted to look like leaders in tackling climate change but instead they generated an energy crisis.”
Mr Miliband’s attack on the offshore industry has already come under fire from two of the Labour Party’s key union funders, the GMB and Unite.
Sharon Graham, the Unite general secretary, has told Labour leaders that the policy will destroy jobs and force the UK to import more oil and gas.
She said in a statement: “Labour needs to pull back from this irresponsible policy. There is clearly no viable plan for the replacement of North Sea jobs or energy security. Unite will not stand by and let these workers be thrown on the scrap heap. North Sea workers cannot be sacrificed on the altar of net zero.”
