New Zealand Plans to Lift Offshore Oil and Gas Exploration Ban Amid Energy Crisis

New Zealand is set to reverse its 2018 ban on offshore oil and gas exploration by year-end to address severe energy shortages and high energy prices. The move aims to attract investment in the oil and gas sector. Renewable energy projects will also be streamlined to bolster supply.

New Zealand announced on Monday that it will pass legislation by the end of the year to reverse the ban on offshore oil and gas exploration, in response to an urgent energy shortage. The law will end the prohibition that has been in place since 2018, targeting areas outside onshore Taranaki.

Prime Minister Christopher Luxon stated that recent severe energy shortages had inflated prices to some of the highest levels among developed nations. Luxon called on opposition parties to support the bill to ensure energy security.

Natural gas production has significantly dropped, triggering the crisis as generators turned to coal and diesel. Energy Minister Simeon Brown highlighted efforts to make renewable power generation easier and cheaper, with plans to expedite project consents and open offshore renewable energy schemes by 2025.

(With inputs from agencies.)