Latest / Early Edition with Ryan Bridge / John Carnegie: Energy Resources Aotearoa CEO on the need for bipartisan support for oil and gas reforms

Transcript

John Carnegie: Energy Resources Aotearoa CEO on the need for bipartisan support for oil and gas reforms · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Your cabinet decision. You heard it yesterday, You saw it yesterday.
• 0:03
  Speaker 1: It's a plan to try and ease our energy woes.
• 0:06
  Speaker 1: The Oil and Gas Exploration Band will be overturned by
• 0:10
  Speaker 1: the end of the year, but they want Labour's support
• 0:13
  Speaker 1: to do it, to try and make it an enduring thing.
• 0:16
  Speaker 2: When there was talk of Lake Onslow sitting there at
• 0:18
  Speaker 2: sixteen billion dollars delivery in twenty thirty eight. That stops
• 0:21
  Speaker 2: people from wanting to invest in actual, proper infrastructure and renewables.
• 0:24
  Speaker 1: As a consequence, he says his agnostic as to whether
• 0:28
  Speaker 1: we get the gas that clearly the country needs from
• 0:31
  Speaker 1: domestic sources or whether we import it. Joining me now
• 0:34
  Speaker 1: is John Carnegie Energy Resources Olteed Archief Executive John. Good Morning,
• 0:38
  Speaker 1: Good morning, Ryan, Good to have you on the show.
• 0:40
  Speaker 1: So do we import it or do we get at ourselves?
• 0:46
  Speaker 2: Well, I think as the Prime Minister has said, we're
• 0:50
  Speaker 2: likely to need both foreign gas, probably as a backstop.
• 0:55
  Speaker 2: But look our preferences that our untapped we have untapped
• 1:00
  Speaker 2: domestic natural gas and we should be using that.
• 1:03
  Speaker 1: Why aren't we tapping it? Is it stuff that we
• 1:06
  Speaker 1: know is there? We haven't actually gone down and extracted
• 1:09
  Speaker 1: yet or set up the extraction.
• 1:11
  Speaker 2: Oh look, we've had a range of policies from previous
• 1:17
  Speaker 2: governments that have been targeted at suppressing actively suppressing a
• 1:21
  Speaker 2: role of natural gas in the economy, and the investment
• 1:26
  Speaker 2: conditions haven't been appropriate.
• 1:29
  Speaker 1: Here's the problem though, right because National is saying yep,
• 1:33
  Speaker 1: it's all on you turn the taps on, but Labour's
• 1:35
  Speaker 1: not saying that. Labor is saying we will not overturn
• 1:39
  Speaker 1: that oil and gas expiration band. So if you're an investor,
• 1:42
  Speaker 1: are you really going to care if just the Nats
• 1:44
  Speaker 1: are saying that because we could have a change of government, right.
• 1:48
  Speaker 2: Well, the Minister for Resources has been looking and publicly
• 1:53
  Speaker 2: using about a range of tools to address the massive
• 1:56
  Speaker 2: sovereign risk at the sector faces. But I guess coming
• 1:59
  Speaker 2: back to your point, actually keeping the lights on shouldn't
• 2:06
  Speaker 2: be a partisan political issue, you know, we should there's
• 2:13
  Speaker 2: a big investments regardless of whether it's foreign guests or ours.
• 2:19
  Speaker 2: It shouldn't be a political football. And actually I'm pretty
• 2:22
  Speaker 2: sure that the people of Ratty are thinking that right
• 2:25
  Speaker 2: about now as well. Yeah.
• 2:27
  Speaker 1: Well and a lot of them unionized ironically too. Just
• 2:30
  Speaker 1: coming back to that sovereign risk issue. They've ruled out subsidies.
• 2:35
  Speaker 1: How else can you shore up business confidence without using
• 2:40
  Speaker 1: the likes of subsidies and without the support of labor.
• 2:45
  Speaker 2: Yeah, well that's a good question. I see that as
• 2:47
  Speaker 2: a part of the announcement yesterday that they are seeking
• 2:51
  Speaker 2: further work from officials on how to address the sovereign
• 2:55
  Speaker 2: risk issue actually for both our domestic natural gas resource
• 3:01
  Speaker 2: as well as for potential investment in LNG. And as
• 3:06
  Speaker 2: I said the Minister of Resources, he's been talking about
• 3:09
  Speaker 2: bonds and long term contracts. I'm not quite sure that
• 3:14
  Speaker 2: either of those are going to be fit for this
• 3:16
  Speaker 2: particular purpose, but he's definitely on the right track. Basically,
• 3:21
  Speaker 2: what's needed are sufficiently if you're investing. What you want
• 3:27
  Speaker 2: is you want to know that if you're going to
• 3:29
  Speaker 2: invest hundreds of millions of dollars, that your investment will
• 3:33
  Speaker 2: be whole when politics changes in six or nine years time.
• 3:40
  Speaker 2: And it's really hard. Of course, there's one parliament can't
• 3:43
  Speaker 2: bind the next. That's right, So you're talk you're talking
• 3:47
  Speaker 2: about contractual measures. I mean, there are a range of
• 3:51
  Speaker 2: range of thoughts going around the public sector at the moment,
• 3:56
  Speaker 2: and government and We're going to work closely with him
• 4:00
  Speaker 2: to ensure that they reached the right landing point.
• 4:02
  Speaker 1: All right, we'll be interesting to keep us up to
• 4:04
  Speaker 1: date with that. John John Carnegie Energy Resources altered chief
• 4:07
  Speaker 1: executive eighteen minutes after five Rainbridge. I mean contracts can
• 4:11
  Speaker 1: be good out of two. Look at the ferries, right.
• 4:14
  Speaker 1: You sign a big contract, you say you're going to
• 4:16
  Speaker 1: do something, you say you're going to buy something, you
• 4:17
  Speaker 1: say you're going to sell something. New government comes along
• 4:20
  Speaker 1: and it's all over. Nine two ninety two is the
• 4:24
  Speaker 1: number to text. What do you think Labour should be doing?
• 4:26
  Speaker 1: What they're not doing is coming on this show this morning.
• 4:28
  Speaker 1: I can tell you that much. But Hipkins is tweeting.
• 4:31
  Speaker 1: Hopkins is tweeting about this, and he's blaming not the
• 4:35
  Speaker 1: oil and gas band that his government introduced. No, he's
• 4:37
  Speaker 1: blaming the mixed ownership model that John Key brought in.
• 4:41
  Speaker 1: Remember when we flogged off the state assets. I was
• 4:45
  Speaker 1: in the back of a bus following Phil Goff around
• 4:47
  Speaker 1: that election. God, it was depressing anyway that all happened.
• 4:52
  Speaker 1: And now that is who we are blaming. According to
• 4:55
  Speaker 1: Christopher Hopkins, he did a face palm emoji in his
• 4:59
  Speaker 1: tweets and he says we have enough renewable energy in
• 5:01
  Speaker 1: New Zealand. The market has prioritized profits rather than supply. Okay,
• 5:08
  Speaker 1: I just to you know this idea that in order
• 5:13
  Speaker 1: to solve this crisis we need more government. We should
• 5:16
  Speaker 1: never have sold bits of that company. We need more
• 5:19
  Speaker 1: government to be sorting it out. I mean, how is
• 5:21
  Speaker 1: key we ral done with investing into infrastructure. How have
• 5:24
  Speaker 1: our hospital's done with investing into infrastructure? I think is
• 5:28
  Speaker 1: backwards thinking. For more from News Talks B listen live
• 5:33
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• 5:36
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