Straterra welcomes $20m oil exploration Budget pledge

Posted in: Media Releases: Monday, 11 May 2009

Straterra welcomes $20m oil exploration Budget pledge

Straterra, the industry group representing New Zealand’s natural resources industries, has welcomed the pre Budget announcement by Energy and Resources Minister Gerry Brownlee of a $20 million seismic survey programme.

“New Zealand’s mineral industry is a major driver of our national economic well-being. This investment programme, run by Crown Minerals, will help to stimulate new oil and gas exploration,” said Straterra Chief Executive Richard Michael.

Data acquisition by Crown Minerals, which is responsible for the administration and promotion of New Zealand’s oil and gas resources, can help to uncover areas that exhibit hydrocarbon potential, Mr Michael said. The data is made freely available to the oil exploration industry to encourage greater interest in New Zealand.

“New Zealand has done little over the past 25 years to make the most of our resource potential. We’re delighted the government has resurrected this initiative, which was abandoned by the previous Labour government.

“The injection of $20 million has the potential to realise high rates of return. And it also directly benefits New Zealand’s geological, engineering and maritime industries. Anyone questioning whether this is money well spent just needs to consider Mr Brownlee’s statement that previous surveys had resulted in $1.4 billion being spent on exploration.”