Economic Development Secretary Geoff Dangerfield first reassured delegates that the government was listening and wanting to engage in discussion regarding New Zealand's future energy solutions.
Then Wood McKenzie spokesman John Feeran, on behalf of energy consulting director David Black, said New Zealand had come out third in the Asia-Pacific region in the company's study on value creation through exploration.
Wood McKenzie estimated value of about US$30 million had been created through exploration in New Zealand during 1996-2002. Australia was the worst performing country in Asia-Pacific, however, for the 13 in the study group that were active in this region.
Australia was ranked 69th overall as the significant amounts of gas discovered were regarded as technical reserves, with only nominal value, until markets had been secured for that gas.
The 25 companies discovered about US$100 billion of hydrocarbons, resulting in total value creation through exploration of US$23 billion, net of exploration expenditure. Shell was ranked 1st in terms of value created and BHP Billiton 4th.
Feeran also agreed with previous speakers that though the majors might not be interested in New Zealand, there were still many opportunities for small-to-medium explorers.
Swift Energy New Zealand chief operating officer Alan Cunningham said SENZ planned at least nine wells this year in the company's onshore Taranaki licences, as well as increasing the propane and butane production from its Tawn fields.
Swift Energy was also moving to multi-field, flexible, interruptible gas supply contracts with its customers as opposed to the traditional dedicated long-term, fixed price terms.
Todd Energy onshore assets manager Winfred Boeren told the conference that as a result of field studies, Todd Energy was planning a NZ$8-10 gas reinjection project to increase overall hydrocarbon recovery from its onshore Taranaki McKee field.
Perhaps an extra 50PJ of gas could be recovered through the project. Todd also planned a tie-in to the northward Maui pipeline from McKee and the nearby Mangahewa field. Fraccing operations were also being considered for Mangahewa and the nearby Ohanga-2 well, to increase production at Mangahewa and, hopefully, commercialise Ohanga.
Greymouth Petroleum principal John Sturgess today confirmed what EnergyReview.Net reported yesterday - that his company had been awarded Block J, now PEP 38762, by Crown Minerals. Sturgess said Greymouth now planned preliminary studies for that permit - in between McKee and the near-shore Pohokura gas-condensate field.
He said Greymouth Petroleum considered the gas and oil potential of this block to be significant and of useful scale. In the next twelve months, Greymouth planned to drill a gas exploration well to test the hydrocarbon potential of the Mangahewa formation. Consideration would also be given to the deepening of this well to test the Kaimiro formation.
Woodside Petroleum LNG executives David Maxwell and Ernie Kennedy told delegates that their company had sufficient LNG to supply New Zealand a likely minimum of one million tonnes per annum if gas users decided to go down the LNG path.
Likely landed cost in New Zealand would be NZ$6-7 per million British thermal units (which roughly equates to a Gigajoule). Likely sources would be from North Australia (perhaps the Sunrise project), the North West Shelf fields or even the Otway Basin.
Woodside estimated New Zealand could face a gas supply shortfall of approximately 1.7 million tonnes per annum of LNG from 2015. "We believe New Zealand is very well placed to get LNG from Australia."
At present there were three categories of Kiwi gas users - those who wanted LNG, those willing to consider it, and "no bloody way", said Maxwell.
If New Zealand decided to import LNG it might take three or four years for planning, and another four or five for construction of the necessary receiving plant and associated infrastructure.
This country's two biggest gas users (excluding methanol producer Methanex) Contact Energy and Genesis Power late last year embarked on a feasibility study into the practicalities of New Zealand importing LNG to ensure gas supply security in a post-Maui world.
