Gas currently contributes about 20% of the country’s primary energy supply and 16-30% of the nation’s electricity. But those figures are expected to rise to about 35% and 60%, respectively, over the next 20 years or so.

The Government has, in the past two years, moved to stimulate oil and gas exploration activity through various fiscal and regulatory measures, and paying for geotechnical work, namely seismic survey programs.

A record number of onshore wells – 34 – were drilled last year and the semi-submersible rig Ocean Patriot was about to start one of the biggest offshore campaigns yet seen in New Zealand waters.

But the Government recognised it could do more to assist New Zealand exploration and production in times of high oil prices and particularly tight international markets for rigs, support and seismic vessels and associated equipment.

Duynhoven said the Government was considering having Crown Minerals improve the coordination of bringing essential equipment into New Zealand; improving aspects of the petroleum fiscal regime; and expanding government-sponsored geotechnical data acquisitions.

However, he said added incentives had to be demonstrably linked to chances of materially changing New Zealand’s position regarding energy self-sufficiency.

Duynhoven said he had no problem with state-owned enterprises Genesis Energy and Mighty River Power becoming involved in the New Zealand upstream sector in their own right.

But he has ruled out a return to a state-controlled, nationalised oil company as some of the International Energy Agency member countries have.

Duynhoven said his Government was not going back to the days of the former state-owned Petrocorp that was set up in the late 1970s as the government’s body in the E&P industry, following the discovery of and decision to develop the offshore Taranaki Maui gas-condensate field.

He said that he regularly attended meetings of the International Energy Agency and was often asked why his government had no state-controlled, nationalised energy company.

“I have not recommended that and will not be doing so … it would be a huge risk for this Government to be directly involved in the high risk oil and gas exploration business,” he said.

Duynhoven said the Government had established Petrocorp when the New Zealand E&P sector was in its infancy, primarily to look after the Crown’s then 50% stake in Maui and to develop the fledgling infrastructure industry.

It sold Petrocorp to Fletcher Challenge in the late 1980s.

The Gas Summit is organised and hosted by event manager Conferenz.