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Petroleum Exploration Platform in New Zealand Waters |
New Zealand’s ruling coalition voted in July 2025 to reverse the 2018 ban on new offshore oil and gas exploration. The change comes amid calls to ease energy shortages and lower soaring power costs. Companies will be allowed to apply from September 2025 for permits beyond Taranaki, the country’s main oil and gas region. The bill passed parliament 68–54, with the governing parties supporting the shift and all opposition MPs voting against it.
Offshore oil drilling platform arriving at port in New Plymouth, New Zealand (Photo: Phillip Capper, CC BY 2.0). The long-standing exploration ban had been imposed by the previous Labour government under Jacinda Ardern. Ardern halted all new offshore permits in 2018 to fight climate change and cut fossil fuel use. National Party leader Christopher Luxon, now prime minister, campaigned on reopening exploration. Resources Minister Shane Jones said revoking the ban will boost energy security and encourage investment. Simon Watts, the new Climate and Energy Minister, told MPs the ban sent “a chilling message” to investors and “led directly to the supply constraints and price volatility that we see today”.
A key part of the government’s plan is the Fast-Track Approvals Act passed in December 2024. This law creates a “one-stop-shop” process for large projects including mining, energy and infrastructure. It lets companies seek multiple approvals (resource consents, permits under the Crown Minerals and Conservation Acts, etc.) in a single fast-track process. Officials say the Act aims to speed up projects deemed of regional or national significance.
Under the fast-track regime, applicants choose either a referral path (asking the Infrastructure Minister to send the project to fast-track) or a pre-listed path (for projects already nominated by government). An expert panel then reviews proposals on an accelerated timeline. Businesses and industry groups backed the law as a way to cut red tape. Opponents argue it will concentrate decision-making power in ministers and cut public input. Notably, the Fast-Track Act was part of the coalition’s agenda and attracted nationwide protests from Labour, Greens, Māori parties and environmentalists.
With the ban lifted, new offshore exploration permits can be applied for from September 2025. Minister Jones said companies may bid for these permits as early as next year. Meanwhile, the fast-track process allows eligible projects (like offshore drilling or seabed mining) to join a compressed approval schedule. The government has already identified 149 large projects (in Schedule 2 of the Act) that can go straight to fast-track panels.
Businesses view this as an opportunity to develop new oil and gas fields or mining ventures. For example, one North Island drilling company noted that removing the ban should revive interest from international investors. Officials believe domestic reserves could play a key role in New Zealand’s future energy mix. In practice, any new permit still must meet conditions and environmental standards, and panels may impose mitigation requirements. However, critics fear the fast-track law gives ministers the final say and could allow projects that courts or councils previously blocked.
A main driver for the policy shift is an ongoing energy crunch. New Zealand’s North Island has faced natural gas shortages as older fields run low. Since the 2018 ban, domestic gas output has declined – reaching a point where electricity generators have sometimes scrambled to find fuel. The government blames high wholesale prices on tight supply and argues that exploring offshore could help fill the gap.
“Renewable production decreases,” said Minister Watts, “it is clear we need contingency options so Kiwis are not left footing a bigger bill”. Utilities argue that more gas in the system can stabilize power costs, especially in dry years when hydro lakes are low. Industry sources note that New Zealand exported about NZ$900 million in oil in 2022, and the Crown earned NZ$214 million from petroleum last fiscal year. The new government has set a goal to grow mineral exports to $3 billion by 2035. This includes oil, gas and metals. Ministers say tapping more of the country’s mineral wealth will boost revenue and create jobs.
The coalition has even earmarked $200 million to support gas exploration, and it withdrew NZ from the international Beyond Oil & Gas Alliance (a fossil fuel phase-out group) in mid-2025. These moves signal a strong pro-mining, pro-oil stance. The government has also reduced funding to conservation and climate projects in its budgets. Business groups have cheered the pro-exploration tilt, saying it will attract investment and leverage New Zealand’s “indigenous reserves”.
Environmentalists and scientists warn that the new policies clash with climate goals. New Zealand law targets net-zero emissions by 2050 (excluding agricultural methane), with a 50% cut by 2030 relative to 2005 levels. But critics say expanding oil and gas exploration makes meeting those targets much harder. Greenpeace, the Green Party and the WWF NZ all say restarting drilling is a step backward. Green MP Steve Abel called the decision “shamefully regressive” and warned that chasing more fossil fuels will damage the planet. WWF chief Kayla Kingdon-Bebb said it puts New Zealand’s “international reputation in the shredder”.
Environmental groups also highlight local ecosystem risks. Offshore drilling can endanger marine biodiversity, including whales, fish and corals. New projects could increase shipping traffic and the chance of spills or leaks. Critics argue that cleanup and decommissioning of old wells is already contentious: an 11th-hour amendment in July 2025 weakened the law requiring permit holders to fully pay for well cleanup. Opponents say taxpayers could end up covering some costs if companies withdraw.
Geothermal hot lake at Waiotapu Thermal Wonderland near Rotorua, New Zealand (Photo: W. Bulach, CC BY-SA 4.0). There are also calls to accelerate renewable energy instead of new drilling. New Zealand already gets over 80% of electricity from hydropower and wind. It has set targets for 90% renewable electricity by 2025 and 100% by 2035. Climate analysts point out that our current climate commitments (50% reduction by 2030, net zero by 2050) will rely heavily on renewables and forest carbon. Increasing fossil fuel projects could undermine those plans. The Climate Action Tracker says NZ’s emissions-cutting policies are currently “highly insufficient” for 1.5°C goals.
The reversal has also provoked strong reaction from Māori communities, especially iwi (tribes) with rights over affected areas. In Taranaki, all eight local iwi have publicly opposed a fast-tracked seabed mining project off Pātea. Ngāti Ruanui and others filed a claim with the Waitangi Tribunal, arguing the fast-track approvals ignored their treaty rights and failed to properly consult tangata whenua. “The government has failed comprehensively under fast-track to consult with tangata whenua, ignored the Supreme Court and is failing to apply the principles of Te Tiriti,” said iwi leader Rachel Arnott. Iwi from outside Taranaki (e.g. Ngāti Porou) have also joined the challenge.
Public opinion appears divided. Opposition parties (Labour, Greens, Māori Party) and many NGOs criticized the rollback. Radio NZ noted opposition claims that the decision “smacks of climate denial” and caters to oil interests. Environmental protests have taken place at Parliament and industry sites. On the other hand, supporters say New Zealand must be pragmatic about keeping the lights on and heating homes. The issue has become a flashpoint in the wider debate over the country’s energy future.
The government argues it is not abandoning renewables: it continues to back wind, solar and geothermal projects. But in practice, the new policy mix marks a shift toward a more balanced energy strategy. Officials claim investment certainty is needed for a smooth transition, meaning fossil fuel generation will stay vital as backup when renewables underproduce. Industry highlights that natural gas plants can ramp up quickly and complement intermittent wind. Environmentalists counter that New Zealand’s abundant renewable resources should be enough to meet demand, and that money would be better spent on energy efficiency and storage.
This tension touches on New Zealand’s brand abroad as a “clean and green” nation. For years the offshore ban was hailed internationally as a bold climate step. Reversing it may make New Zealand an outlier among many advanced economies cutting fossil fuel use. The Guardian noted that just a week prior, the world’s top climate court urged countries to phase out fossil fuels. Some worry foreign partners and investors may view NZ as less committed to climate leadership. Others believe practical needs (energy security, jobs) justify a temporary shift.
In any case, the new measures signal a clear policy change. New Zealand will now allow offshore drilling permits again and fast-track large resource projects. Economic goals like a $3 billion minerals export target by 2035 and lower power prices are driving these decisions. Simultaneously, many citizens, iwi and experts are questioning the risks to the climate, environment and New Zealand’s global image. The outcome will depend on how these projects proceed under the fast-track process, how the government manages cleanup obligations, and whether cleaner energy alternatives can keep pace.