In 2022, New Zealand's net self-sufficiency in oil (production divided by consumption) was 12%, i.e. the country imported much more crude and refined oil than it exported.[1] All crude oil extracted in New Zealand was (and is) exported as the Marsden Point refinery was not suited to processing it.[2] In 2018, 60 petajoules of crude were produced in New Zealand, 380 PJ of petroleum products imported (most of it crude), and 283 PJ consumed. The difference is exported or used for international travel (aviation fuel and similar).[3]
Oil and gas are produced from 21 petroleum licenses / permits, all in the Taranaki basin.[4] The most important fields are Kapuni, Maui, Pohokura and Kupe. Exploration for oil and gas reserves includes the Great South Basin and offshore areas near Canterbury and Gisborne.
There are 2,600 kilometres of high-pressure natural gas transmission pipelines in the North Island.[5] Most of these are owned and operated by First Gas, including the Maui pipeline, a 307 km pipeline that carries 78% of all natural gas produced in New Zealand.[6] The low-pressure gas pipelines that distribute gas to end users are owned by First Gas (Northland, Waikato, Bay of Plenty, Gisborne, Kapiti Coast), Vector (Auckland), Powerco (Hawke's Bay, Taranaki, Manawatu, Wellington) and GasNet (Wanganui).
In 1865, the Alpha well was drilled near Mikotahi at New Plymouth.[9] This was the first oil well in what is now the Commonwealth and one of the first in the world. A petroleum industry developed at Moturoa, including producing wells and refineries. The last refinery there was closed in 1972. The field continues to produce small quantities of oil.[10]
The Kapuni gas field in South Taranaki was discovered in 1959 and brought into production in 1970. The North Island natural gas network started operating in 1970, initially supplying Kapuni gas to Auckland, Hamilton, New Plymouth, Wanganui, Palmerston North and Wellington. The off-shore Maui field was discovered in 1969 and brought into production in 1978. This supported the development of many large energy projects, including gas fired power stations at New Plymouth and Huntly, ammonia-urea plant at Kapuni, gas to methanol plant at Waitara and the synthetic petrol plant at Motunui.[11]
In 2018, the government announced that no new permits would be issued for offshore oil exploration.[12]
In 2021, the last of the deep sea oil and gas exploration permits outside Taranaki was surrendered. This was the Totara permit held by NZOG for an area in the Great South Basin of the south coast of the South Island.[13]
Oil and gas fields
New Zealand gas production by field
Proven and probable (2P or P50) reserves, ultimate and remaining, as at 1 January 2019[3]
Approximate location of the Great South Basin with approximate location of allocated oil exploration blocks
Offshore oil and gas is likely to become an increasingly important part of the South Island economy into the future. Origin Energy has formed a joint venture with Anadarko Petroleum, the second-largest independent U.S. natural gas producer, to begin drilling for oil in the Canterbury Basin off the coast of Dunedin. The 390km2, Carrack/Caravel prospect has the potential to deliver more than the equivalent of 500,000,000 barrels (79,000,000m3) of oil and gas. Market analyst, Greg Easton from Craigs Investment Partners commented that such a substantial find it could well turn Dunedin from the Edinburgh of the south to the Aberdeen of the south.[14]
The Great South Basin off the coast of Otago and Southland at over 500,000 square kilometres (190,000sqmi) (covering an area 1.5 times New Zealand's landmass) is one of New Zealand's largest undeveloped offshore petroleum basins with prospects for both oil and gas. In July 2007, the New Zealand Government awarded oil and gas exploration permits for four areas of the Great South Basin, situated in the volatile waters off the Southern Coast of New Zealand. The three successful permit holders are:[15]
a consortium led by ExxonMobil New Zealand (Exploration) Limited (United States) which includes local company Todd Exploration Limited (New Zealand);
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