THE PRESS WEDNESDAY. MAY 20, 1981. The search for oil

Press, 20 May 1981, Page 20

THE PRESS WEDNESDAY. MAY 20, 1981. The search for oil

.New Zealand has had its share of in the search for oil. There have been dry holes and companies pulling out of the search because they disliked the Government’s policies. More • recently; ; the Tangaroa probe raised hopes ■/ which were dashed. It has seemed to many . that New: Zealand will have to work out its energy salvation without pinning any hopes on substantial quantities of oil being found. The discoveries of the’ Kapuni and Maui gas fields and the small McKee oil. field went', only some way towards dispelling this pessimism. ' ' • ”

% There are still no grounds for great / optimism, but the prospect that the search for oil will be much more intensive in the next five years than it has been in the last five is encouraging. Activity is to pick up in blocks off the western coast of New Zealand, probably in blocks off Banks Peninsula and in the difficult but promising Great South Basin. The Government appears to have been successful in; hammering out a policy, on taxation • and' ■ shared■. investment ' in the search which strikes the necessary balance. Setting terms which satisfy the exploration, companies.but do not give too much, away to them should the search be successful is

a delicate, difficult business. It is clearly to

the country’s advantage that the search t continue more actively than in the .recent past, but not to the country’s advantage that it continue at any cost, specifically at the cost of the country not benefiting to the extent it should in the case of a major find. The alacrity with which the companies have responded to the Government’s

invitation might have aroused, suspicions that, the Government has offered terms that are too easy. But enough is known about the terms that a better explanation for the eagerness of the companies to “get a piece of the action”, is that the prospects in some at least of the areas off the New Zealand coast are good. There are grounds for guarded optimism.

Even if oil is eventually found in significant -quantities, it', will be years before • a discovery can relieve New Zealand of the heavy burden of oil imports, and Britain, provides . proof that oil alone cannot' so,lye- a Country’s economic problems. Uhtil-oil is found, the search will cost rather* than, pay the country. Through Petrocorp, large sums' of Government money, will be sunk beneath the waves. The Maui field was ’ discovered relatively quickly; in other parts of the world oil has been found only after much more money has been spent.than has peen spent so far . in the search for oil. off New: Zealand’s coasts./ 11 •

Hopeful as the prospects seem to be, the Government would be most unwise to starve of funds research into the development of other, proven, energy sources such as coal and the promotion of energy conservation because the search for oil is requiring heavy investment. The country must continue to plan as if oil will not be found. If the country is lucky, there will be plenty of time between the discovery being made and the oil actually coming ashore for the country’s energy plan to be adjusted.