The need to reform N.Z.’s energy sector

As the U.S./Israel war against Iran continues, it is clear that Iran holds a degree of geopolitical influence in the Middle East that many have overlooked. It also highlights how important a body of salt water between Iran and Saudi Arabia is to the western world, including New Zealand.

And the desperate need to reform our energy sector.

Whilst it is not helpful that the refinery closed, it is – contrary to what Minister of Energy and Resource, Shane Jones will tell you – not a decision that was made by the Labour Government of Jacinda Ardern. On the contrary, it was closed as a result of the Refining New Zealand board making a unanimous decision that it did not meet our needs, and was no longer economic to run.

There are some good reasons though behind the refinery closure, namely the decline of the Kapuni and Maui gas fields in Taranaki. These have been in decline for some time and it is well known that they will run out in the next couple of years. A second reason to close is the failure to find any other major deposits, which may in part be down to geology – oil and natural gas does not form rapidly, and needs a sedimentary environment where decaying plant matter is laid down over thousands of years.

Despite this, there is a plan to reopen Marsden Point. However this would be several years away from happening, and is at risk of being stopped should there be a change in Government in November.

What should bother every New Zealander who is concerned about our energy and economic security, is the complete lack of direction coming from the Government, and in particular Prime Minister Christopher Luxon. So far, no party in Parliament has really stepped up to the proverbial plate with alternative energy policy, despite there being an election in 6 1/2 months. At a time when we are confronted with an energy crisis brought on by an almost universally unpopular war, New Zealand is quite simply lacking a Prime Minister with leadership skills that will help the country get out of the current mess.

Looking at the social media commentary, it also seems that many people do not understand how much can be gained economically from investing in biofuel using waste stream base substances. Biofuel is one of the least invested and understood areas of the energy market. Will it replace diesel or petrol? No, and that was never the intention given their dominance of the market. The idea behind these sources is to supplement alternatives and clean up the waste stream somewhat at the same time, which would be potentially useful to our emissions footprint.

I understand that there is a biogas facility at Reporoa, which is encouraging, as it processes 75,000 tons of food waste from around the North Island. However, I am not aware of such a facility in the South Island. Being a farming oriented nation though, we have the potential to significantly increase the production of biogas and other biofuel from an agricultural standpoint.

We, as a nation are also caught in a bit of a bind. On principle, recognizing the past wrongs done by Iran, we should not have anything to do with the Islamic Republic, except that, because they did not start the war, the shoe is on the other foot. Other countries are actively trying to strike deals with Iran to ensure that their energy needs are secure in the knowledge that the Strait of Hormuz will remain open to them. This is a strategy that I am not wholly comfortable with, lest it give the Islamic Republic any degree of legitimacy. New Zealand, following the Russian invasion of Ukraine passed legislation prohibiting the purchase of Russian oil, lest the money earned from its sale, be used to fund weapons for continuing the war.

At a time when a challenge manifests, we appear to be currently lacking a leader who wants to turn it into an opportunity for the good of New Zealand. Can that change?