Oil Exports Now NZ’s Fourth Economic Pillar
September 3rd, 2009
Oil production is becoming a fourth pillar of the NZ economy, behind dairy, meat and tourism. Latest figures show in 2008 oil export earnings ranked third behind dairy and meat exports in merchandise trade. Crude oil and condensate production rose 57% to 2.5m tonnes in the year to December 2008 from 1.6m tonnes in 2007. The value of oil exports jumped 103% to $2.8bn from $1.4bn in 2007, thanks in part to the peak prices for crude in international markets. Although global oil prices have since slumped, oil production still looks set to be a significant factor in NZ’s trading future.
While crude oil output from the Tui field off Taranaki as projected, is dropping, the Maari field commissioned this year is exceeding expectations, and is producing just on 40,000 barrels a day. This could build up even more if appraisal drilling of the nearby Manaia structure yields additional production. The Kupe field is due for commissioning later this year, and though it’s mainly a gasfield, it will also yield liquids both condensate and LPG.
Global external trade figures issued by MFAT and Statistics NZ recorded mineral fuel exports in 2008 accounted for 6.9% of the country’s total exports. Dairy products accounted for 21.6% of total merchandise trade and meat was the next largest at 12%. Todd Energy, now the biggest local oil and gas producer, this week announced a $100m drilling programme, including more wells in the onshore Mangahewa field, gas from which could be used in an LPG plant and as fuel for thermal electricity generation.
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Duncan Cotterill