Analysis suggests $28 billion loss if NZ oil and gas ban happens


An analysis of the intention to phase out oil and gas with no new exploration allowed, suggests that New Zealand might lose $28 billion IF the ban goes ahead. The ban, which was announced last year by Prime Minister Jacinda Ardern was meant to address the impact of carbon from man made emissions on the climate.

I say IF for a simple reason. At some point, National is guaranteed a return to power and possibly with A.C.T. as a coalition partner or supporting party. It is only inevitable that one or both parties or some other combination of centre-right parties will try to either overturn the ban, or so weaken it by indirect action that it is no longer a workable mechanism of reducing our man made carbon emissions.

The concerns I have about the likelihood of succeeding in completely winding up oil and gas exploration are matched by concerns about the feasibility of electric cars. Yes there might be a surge in the number of Nissan Leaf’s entering the market, along with new models from Toyota, Mitsubishi and Kia, but looking at the range of these vehicles, only two of them could make the 189km trip from Christchurch to Kaikoura even if they left completely charged up.

Other companies – namely Tesla, Renault, B.M.W. and Hyundai – offer vehicles in New Zealand as well, but the prices as an article on Stuff in October 2018 suggested are far higher. Who is likely to want to shell out for a N.Z.$59,000 Hyundai Ioniq EV? For that matter when one considers disposable income in most New Zealand households, who can even afford one?

The death hold Toyota Corolla’s have on the small vehicle market is growing. A hybrid version now exists, which is basically $38,500 and their very popular petrol version continues. Toyota also have medium size Camry’s, again with a hybrid option.

There is another problem too. Many New Zealanders simply don’t see the need for flashy complicated vehicles and as long as they can get cheaper ones that have had numerous owners and still run fine, then it is a losing argument on simple economic grounds.

Also IF this ban is to be effective, New Zealand needs a comprehensive plan in place to make this happen. So far all I have seen is Green Party chest thumping over getting the ban in place and a lot of hot air from National and A.C.T. about how the economy will be crippled whilst completely ignoring the environmental impacts. A New Zealand Energy Voices advert on Facebook promotes oil and gas.

 

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