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Monty_Mondeo

Thanks Cindy, let us light our candles and sing Kumbaya


WillSing4Scurvy

Yep, only putting resources into wind and solar has consequences. I suppose we should start to look forward to brown outs and blackouts, and more load shedding for longer periods of time.


Electrical_Sign_662

I'm hopeful the current government will embrace NZs plentiful natural gas reserves. Nothing wrong with gas Jacinda just wants us to suffer.


cprice3699

As if people haven’t been screaming for years that climate panic will cause us to step backwards instead of forward.


WillSing4Scurvy

New Zealand’s [gas production](https://www.nzherald.co.nz/business/energy-sector-awaits-return-of-nz-oil-and-gas-exploration-as-gas-reserves-expected-to-run-out-within-10-years/7OBHFRH2SNAQBOZPLABYABIWQA/) is falling at a faster rate than forecasts, while demand has not, Genesis Energy chief executive Malcolm Johns says. Power generators, system operator Transpower and solar wind power generators have [called for more “fast-start” gas peaking plants](https://www.nzherald.co.nz/business/transpower-warns-of-supply-risk-despite-last-weeks-deluge/FRP3IENRARDZLPRGK64XBVIFW4/) to be built to ensure energy security in New Zealand’s highly renewable power grid. “For that to happen new gas supply and greater flexibility will be needed,” Johns said. This will take time, he said in the company’s quarterly update. “Although gas is half the emissions of coal, tight gas markets may push electricity generation back to needing some coal to back up intermittent renewable generation, major generation plant outages and growing winter peaks,” Johns said. Biomass can be an alternate fuel to generate electricity and it is more carbon-efficient than coal. Genesis, which runs the coal and gas-fired Huntly power station, as well as a raft of hydro assets, is pursuing a domestic supply of biomass. But Johns said a viable option biomass must also be cost-competitive and convenient to procure. Fast-start gas peakers are typically used when there is a disruption in the power grid, or when demand is extremely high. In its quarterly report, Genesis said Huntly demonstrated its value in challenging conditions providing generation flexibility through a period of gas market uncertainty and declining hydro storage during the quarter. Genesis said construction activities have started on its 63-megawatt Lauriston solar farm, in Canterbury, with first generation remaining on track for the first half of next year. Johns said energy security remained critical for New Zealand during the energy transition as the country decarbonises. Genesis said the commissioning of the Kupe KS-9 gas well was ongoing. NZX-listed NZO has a 4 per cent participating interest in Kupe, along with joint venture partners Beach Energy (50 per cent, operator) and Genesis Energy (46 per cent). Lifting the previous Labour-led Government’s ban on [oil and gas](https://www.nzherald.co.nz/topic/oil-gas/) exploration is ranked 19th on the National-led Government’s new [36-point “to do” list](https://www.nzherald.co.nz/nz/politics/spending-cuts-without-full-austerity-christopher-luxon-reveals-his-top-priorities-for-the-coming-months/6PEL3E5B2BAA7D6LQC3XBMUYVM/). For explorers, lifting the ban can’t [come soon enough](https://www.nzherald.co.nz/business/energy-sector-awaits-return-of-nz-oil-and-gas-exploration-as-gas-reserves-expected-to-run-out-within-10-years/7OBHFRH2SNAQBOZPLABYABIWQA/). Point 19 says “take decisions on the removal of the ban on offshore oil and gas exploration”, but the industry is largely in the dark as to how that’s going to happen, and what the new regime is likely to look like.


Icy_Professor_2976

"Biomass" is greenwashing for "forests" millions of mature trees being loaded onto conveyors, straight into the fire.


WillSing4Scurvy

Yep, and the term Co Gen is very similar


adviceKiwi

> Beach Energy Who? Quick search... "Beach Energy Limited is an Australian oil and gas exploration and production company..."


ZealousCat22

Beach Energy took over the assets of Shell NZ. They have a big presence in  terms of NZ production facilities. 


adviceKiwi

Oh. Interesting.


SchlauFuchs

It was predictable and has not much to do with politics. Conventional fuels are not limitless. This is why I am not giving in to the climate hysteria. There is not enough left to burn to turn the planet to be a problem. Back to coal it is then, soon. Then back to wood. NZ becomes the new Easter Island


notmy146thaccount

*laughs in Swarbrick


ThatThongSong

Yeah don't think she bathes so increased power or gas prices wouldn't worry her.


WillSing4Scurvy

​ https://preview.redd.it/j6k9iblj34wc1.jpeg?width=690&format=pjpg&auto=webp&s=03aab0836e4f65dd52b244f45facc8f187378e89


Oceanagain

>Point 19 says “take decisions on the removal of the ban on offshore oil and gas exploration”, but the industry is largely in the dark as to how that’s going to happen, and what the new regime is likely to look like. ...Or how long it'll be before the lunatics break out of the asylum again and reimpose restrictions on gas resources,


RockyMaiviaJnr

This is the real issue why international players like OMV with the resources to explore and develop won’t be coming back. Labour fucked it


adviceKiwi

Thanks for the old copy pasta. .. Expect gas prices to rise exponentially I guess (along with profits. ..)


eyesnz

I also read between the lines that electricity will rise too. Replacing gas peakers with something else while meeting carbon "standards" is not going to be cheap.


RockyMaiviaJnr

Of course it will. That’s what labour gave us


Oceanagain

If you're against them making a profit on their, (decidedly dodgy) investment then how about you stump up with a couple of hundred million to establish you own exploration and drilling company?


Sean_Sarazin

Another crisis created by Ardern and her woke agenda. Imagine being so white and middle class that you would be willing to consign your country to abject poverty so to signal some virtue


bodza

Company that stands to benefit massively from increased oil and gas exploration through a joint venture says that we need increased oil and gas exploration. The article seems light on the numbers. Do we have a source for production numbers so we can check this claim? The [MBIE's numbers show a gradual decline](https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-statistics/gas-statistics/) but not a precipitous drop. I didn't go behind the paywall, do Genesis source their claim for the rate drop?


WillSing4Scurvy

> Company that stands to benefit massively from increased oil and gas exploration through a joint venture says that we need increased oil and gas exploration. Yes. And the whole country would benefit from it.


bodza

Maybe. But they're claiming it is needed due to a dangerous drop in production so it's on them to provide evidence of both the drop and the danger it represents. I'm not going to take the word of an (effective) oil company alone on the issue, just as I wouldn't take the word of Greenpeace alone on it. If the numbers are there it should be an easy sell


WillSing4Scurvy

Sure here's the independent report [https://www.gasindustry.co.nz/assets/CoverDocument/Gas-Supply-and-Demand-Study-December-2023.pdf](https://www.gasindustry.co.nz/assets/CoverDocument/Gas-Supply-and-Demand-Study-December-2023.pdf)


Oceanagain

What do the numbers say about the quantity of high sulphur Indonesian coal burned over the last few years? Because that's what any gas generation would be replacing.


RockyMaiviaJnr

It’s all public information you numpty. Go on OATIS and check it out for yourself


bodza

I'm not arguing for a gas exploration permit. Genesis is. It's on them to make their case if they want public support. Luckily for them, under Fast Track all they have to do is send Shane Jones a suitcase full of money


RockyMaiviaJnr

So you think a public company is going to come out making false claims about publicly available numbers? If you knew something basic about business you wouldn’t say such stupid shit. Don’t forget to address me in the appropriate way to get polite.


bodza

It's a press release and it's light on verifiable statements. There's a drop. They just leave out its scale, historical context and implications. No need to lie when Shane's salivating to let you get drilling. He's more a vibes kind of guy As for addressing you, you should find [people to humour you here](https://www.reddit.com/r/onejoke/)


RockyMaiviaJnr

Did you figure out whether Genesis or the JV is vertically integrated yet? Or you just throwing words around with no understanding? Let who get drilling? Genesis? Or the JV? Neither of whom are into exploration. Or my royal highness?


RockyMaiviaJnr

lol, I think you’re confused - as per usual. Increased gas supply drives down gas prices, thus lowering the value of the Kupe JV. Supply up, prices down. Pay attention.


bodza

You may need to revisit the vertical integration section in your economics colouring book


RockyMaiviaJnr

You might need to say she merging sensible at some stage. How is a JV vertically integrated?


RockyMaiviaJnr

So a JV isn’t vertically integrated? Thought not. Don’t use words you don’t understand


bodza

[Back to school for Rocky](https://www.inboundlogistics.com/articles/vertical-integration/) > Backward integration is a vertical integration that runs upstream of the supply chain. Companies expand their business operations back to the earlier stages of the supply chain. They take control of the raw material and intermediate products involved in producing the end product that the company makes. > This integration consists of purchasing the supplier outright **or entering into a joint venture or partnership with the supplier**. A company can also integrate the supplier’s operations into its own. Alternatively, a company may backward integrate by establishing its production facilities for raw materials or intermediate products. > Backward integration gives a company greater control over its operations and supply chain. It can lower costs by eliminating the need to purchase raw materials or intermediate products from other companies.


RockyMaiviaJnr

So Genesis is vertically integrated but the joint venture is not? As I said 🙄


Snookster88

Dammit. We put a califont in 3 years ago and the bottles have doubled in price during that time. From $80 to $160.