Sexy coal on sexy oil

From Parliament last Wednesday:

Peseta Sam Lotu-Iiga: How does the taxpayer benefit from our increasing domestic production of oil?

Hon GERRY BROWNLEE: The Crown received approximately $965 million, including taxes paid, from petroleum production in the last financial year. Of that, $543 million was in royalty payments alone. New Zealand produces in excess of 21 million barrels of oil a day. Closing the balance between oil imports and exports is a real benefit to the New Zealand economy and, consequently, the taxpayer.

21 million barrels a day!  Who would believe it?  Little ol’ New Zealand produces a quarter of the world’s oil – more than Saudi Arabia and Russia combined!

And all because of our wonderful Minister of Energy and Resources, Gerry Brownlee.  Gee, he’s clever!

24 Comments Posted

  1. Oh, you can be sure of that. If the economy needs the minerals to keep growing, those rights will be issued and to hell with the environment (or the notion that there are limits to growth).

  2. Gerry Brownlee on Radio National breakfast show just before 8.00 discussing mining in our national parks; talking up RARE EARTH elements as being something they may be aiming for in there.

    He believed that the mining operation for these would be very small and non-invasive.

    Obviously he hasn’t seen this:

    The need for these minerals in clean/green technologies such as wind turbines may soon be used as a stick to try and beat the environmental movement into line.

  3. Toad
    You can change the number of negatives (limit 30) before comments are hidden. See opposite # of comments at top of page.

  4. The correct oil production figure is 21 THOUSAND barrels per day. This is down from a peak of 49.5 thousand barrels per day in 1997. In comparison we consume 159 thousand barrels per day.

  5. From the Ministry of Economic Development’s Energy Data File published July 2009:

    “Total oil production in New Zealand, defined as including condensate, naphtha and crude oil, increased by 45% in the 2008 calendar year to 128 PJ (21 million barrels). This was due to continued strong production from the Tui and Pohokura fields.”

    Does that mean oil production increased by 45% under a Labour Govt? Brownlee’s figure on Wednesday of 21 millions barrel (a year) would indicate production hasn’t increased at all under a National Govt.

  6. It seems pretty obvious that Brownlee has got the wrong figures, or been mis-reported. Quite clearly NZ does not have oil production higher than either Russia or Saudi, let alone both of them combined. Never has, never will.

    So the real question is: what are the correct figures?

  7. At yesterdays Agricultural Show in Southland, John Key told the assembled, adoring farmers, that they needen’t worry about his proposed 15% rise in GST. He said that it might mean they would have to pay and extra $500 per year, but that they would get $1500 back as personal tax cuts.
    He also said that they oughtn’t worry about the $3000 each farm would be required to pay toward the Emissions Trading Scheme, because he’d make sure they got all that and more returned to them in other ways.

    The crowd cheered (99% of them).

  8. Good one frog.

    So, now we’ve proved Brownlee is inumerate as well as arrogant.
    Was it meant to be 21 million barrels a year, or 2.1 barrels a day, or some other variant of mathematical logic 😀

  9. Hey, I just gave big bro a thumbs up on his 2:43 PM comment. Not because I in any way support it, but because I don’t think it should be hidden because it shows how little attention he paid to frog’s actual post before making his usual kneejerk response.

    If people here want to keep it for the sake of posterity, give him a few thumbs ups (not too many, mind you).

  10. Axle

    The government will make sure that we share in the wealth, in fact the only way I will not see some of that wealth is if the left are in power and blow it all on useless social projects.

    As for your carbon imbalance argument….oh dear, it seems you must have missed the climate gate saga, the world is fast waking up to the con that is climate change.

    Given that our government will not cut spending then the ‘riches’ are what we need, it is not short sighted at all.

  11. When was the last time an oil boss came up to you and “shared” some of his wealth with you BB? (Maybe every day, you have that whiff about you . . .)

    The only sharing that goes on with oil extraction and exploitation is shared blame for environmental fallout and carbon imbalance. Shallow, short-sighted riches.

  12. Thing is the longer we leave the oil in the ground, the more it’ll be worth.

    There is no doubt that (assuming we play by the standard rules) despite almost all the benefit accruing to off-shore companies and individuals, there will be crumbs from that table that will benefit NZ.

    A good example of this is the UK – the best of the blast of benefit from the North Sea lasted about half a century, and is now waning. Imagine how the UK would be benefiting now had they left the stuff under the north sea for a decade or two, now that the petrochemicals are worth several times what they were back then.

    Timing is everything.

  13. Trouble with big bro is that his policies have put us into the third world. Digging up the whole country won’t change that.

  14. Gee, lets look at the options in a balanced fashion.

    1. Leave the resources in the ground and continue on our way to third world status (the ultimate goal of the Greens)

    2. Tap into the abundant natural resources New Zealand possesses and let everybody share in the wealth.

    Which one will the vast majority of the public support?

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