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East Coast Report Outlines Future O&G Possibilities

A joint economic development study has highlighted the potential of developing an onshore oil and gas industry and thousands of new jobs on the North Island’s East Coast.

The East Coast Oil and Gas Development Study, released today in Napier by Economic Development Minister Steven Joyce and Energy and Resources Minister Simon Bridges, was commissioned to look at the benefits, impacts and risks of petroleum development

The study shows that if significant oil discoveries on the East Coast were found they could become a real game changer for households and businesses in that region and across New Zealand.

Contents of the report include:

  • Petroleum Prospectivity
  • Geological considerations
  • Production scenarios
  • Economic opportunities and impacts
  • Development impact and environmental issues
  • Risks and risk management
  • Tools to manage the process

There is significant interest in exploring the onshore East Coast Basin and a real prospect that this could lead to some form of petroleum development. The geology of the East Coast of the North Island has two extensive formations, Waipawa and Whangai, which have generated petroleum. It is known that they have generated petroleum because oil has seeped to the surface at a number of locations.

Little exploration of the Waipawa and Whangai formations has taken place, so current knowledge of the productive potential of these formations is limited. Until exploratory wells are drilled to directly access these formations there is a wide range of uncertainty about whether recovery would be economic.

A range of scenarios are thus discussed in the report including:

  • Quickly abandoned exploration
  • Some more exploration but no development
  • Small scale production
  • Large scale production
  • Large scale, high volume production

Further information

  • Download report directly here
  • Link to all papers, reports and FAQ concerning the report here
  • View video on industry response to the study in Hawkes Bay here