New Zealand's right-wing coalition government has voted to resume oil and gas exploration, overturning a 2018 ban enacted by the previous Labour government. The move, passed by 68 votes to 54, is intended to alleviate energy shortages and high prices, but has drawn sharp criticism from opposition parties and environmental groups.
Climate and Energy Minister Simon Watts argued the ban had deterred investment and worsened energy security. 'The ban sent a chilling message to the investment community, halting the very exploration that underpins our energy security and leading directly to the supply constraints and price volatility that we see today,' he told parliament.
The reversal is part of a series of controversial policies by the coalition, which includes the centre-right National Party and the populist New Zealand First. In 2024, the government passed a law to fast-track mining and infrastructure projects, allocated $200m for gas exploration, and withdrew from the Beyond Oil and Gas Alliance. It aims to boost mineral exports to $3bn by 2035 while cutting funding for conservation and climate initiatives.
Opposition MPs condemned the decision. Labour's Megan Woods called it 'an ideological desire to look to the past instead of investing in the future,' while Green Party's Steve Abel described it as 'shamefully regressive.' Environmental groups also voiced outrage. Dr Kayla Kingdon-Bebb, chief executive of WWF New Zealand, labelled the legislation 'egregious' and 'deranged,' warning it would damage the country's international reputation.
An 11th-hour amendment to the bill weakens rules requiring oil and gas permit holders to pay for decommissioning and clean-up of wells. Dr Jen Purdie of the University of Otago warned this could leave taxpayers liable for costs, as happened with the NZ$400m clean-up of the Tui oilfield after the operator collapsed.
