THE PRESS FRIDAY, DECEMBER 1, 1978. Search for energy goes on

Press, 1 December 1978, Page 12

THE PRESS FRIDAY, DECEMBER 1, 1978. Search for energy goes on

The Minister of Energy (Mr Gair) must be getting tired of having to repeat, after each report of a dry hole and each rumour that overseas oil companies are pulling out of the search, that the hunt for oil in New Zealand is not over. The relatively rapid discovery of the Maui gasfield may have raised too high an expectation of success in the search for oil. In many other searches, oil has been found only after far more holes have been drilled than have been drilled so far in New Zealand or just off its shores. The overseas oil companies will be unlikely to abandon the search for oil here entirely until they have recorded more serious set-backs. They will not leave until they are satisfied that there is no chance that a rival will strike oil or more gas here. The companies are now studying the Government’s proposed oil tax legislation and draft participation deeds: some public jockeying for position is inevitable and the companies will not hesitate to use the threat of withdrawal. For its part, the Government must hold out for reasonable terms for New Zealand should a major discovery be made.

It is important simply to know

whether there is sufficient oil in this region to help New Zealand out of its economic difficulties and the search must go on, even against lengthening odds. This does not mean that the Government should do anything to keep a particular company, or a particular drilling rig, here. The development of the North Sea fields has shown that a major discovery does not mean an overnight economic recovery. A few delays will not matter if they help ensure good terms for this country if a discovery is ever made. While failure, so far, in the search for oil has been drawing headlines, success is marking another less dramatic but probably just as important energy search. Holes drilled as part of the Government’s coal exploration policy are confirming that this country has copious supplies of coal, particularly in the Southland lignite field. Coal can, of course, be more difficult to recover and is more difficult to make available to consumers in useful forms. But as solutions to the various technical and environmental problems associated with the extraction and use of coal are solved, these difficulties may come to matter rather less if oil is not found.