Oil fantasy

This story, from the point-of-view of what is happening globally is share fantasy.

As we have seen oil refineries are being closed down around the world as with Peak Oil and the collapse of the world economy capital for such ventures is disappearing.

It is also an example of the corporate principle of privatising profit and socialising risk and costs.

If oil was found and if the oil companies moved in to drill (in deep-sea waters) with all the high costs and huge risks, the oil would be exported and only 5% would come into the NZ economy.

If there was an oi spill of the likes of the Gulf of Mexico catastrophe guess who would be paying!

In a 'sane' (but infinite growth world) New Zealand would be keeping the oil for strategic interests and investing in an ability to refine the oil here.

But of course it makes more economic 'sense' to send the oil abroad and let the oil companies   rake in the profits.

Major potential seen for NZ oil industry

The Ministry of Economic Development predicts New Zealand could become a net exporter of petroleum by 2030 if new oil fields are developed.

Radio New Zealand,

3 February, 2012

In its briefing paper to the Energy and Resources Minister Phil Heatley, the ministry projects oil production could almost treble.

Mr Heatley says the oil and gas industry is already the country's fourth biggest export earner and there is real potential for growth.

The oil industry in Taranaki has a good safety and environmental record and that could be repeated elsewhere in New Zealand, he says.

But the Green Party's energy spokesperson says oil exploration returns very little to the country.

Gareth Hughes says the profits head overseas, while the taxpayer carries the environmental risk.

New Zealand would be better off concentrating on green technologies and renewable energy, he believes.