NZ First oil and gas policy: Experts call $1 billion exploration plan high-risk for energy security

New Zealand First has proposed a $1 billion investment in a national subsurface survey to identify oil, gas, geothermal, and carbon storage sites. Experts criticize the plan as a high-risk gamble, noting that the promised 90% chance of a major commercial discovery is unsupported and that even significant finds may not be economically viable or usable for domestic supply. Researchers point out that New Zealand's abundant renewable resources and emerging firming options like biomass make fossil fuel exploration unnecessary. They argue the money would be better spent on proven solutions like home insulation or accelerating renewable energy growth. The policy also faces structural risks from political instability and the ongoing transition of transport and industry away from oil and gas. The survey's inclusion of geothermal and CO2 storage is seen as potentially useful, but experts stress that existing data already covers many geothermal resources. The plan's timeline of six years to production is questioned given the complexity of deep offshore projects compared to past onshore developments.