The New Zealand Energy Strategy (NZES), released last October, was part of the Government's broader agenda for economic transformation and environmental sustainability, Parker said.

"Our view is that all new electricity generation should be renewable, except to the extent needed to ensure security of supply, and we have set a target to reach 90 percent of electricity generation from renewable sources by 2025," he said.

"For the petroleum sector this does not mean it is all doom and gloom. There is still considerable opportunity for your business, and the relative economics of gas against coal will improve under the Emissions Trading Scheme.

"Fossil fuels, especially gas, will continue to have a critical role for some time to come."

Parker said New Zealand was well positioned in the global petroleum exploration and production industry.

"This government is actively encouraging petroleum exploration and development," he said.

"The rewards will contribute to the long-term stability and security of our energy supply and will potentially provide a major boost for New Zealand's economy," he concluded.