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Tim Jones

NZ Government's Oil Emergency Response Strategy

On behalf of the Sustainable Energy Forum, I got in touch recently with the team in the Ministry of Economic Development working on the Government's Oil Emergency Response Strategy, which is designed to deal with short-term oil supply disruptions. I asked how things were going with the Strategy, which has been in preparation for a while (SEF made a submission on a consultation document in relation to the Strategy a couple of years ago), and also whether consideration would be given to diverting Tui oil field production for New Zealand domestic use in the event of a severe supply disruption. I thought you might find the MED's response interesting:

"The Oil Emergency Response Strategy is currently in the very final
stages of completion, and should be publicly released by the end of this
month, or very soon after.

Given SEF's main interest in long term oil depletion, it may be worth
pointing out that the Strategy explicitly does not attempt to address
long term oil supply issues and is confined to short term oil supply
disruptions only.

With regards to your question about the Tui oil field, this is a highly
unlikely scenario. While in the event of an oil emergency the government
does have a range of legislative powers that could be used to direct
domestic oil to the New Zealand refinery, this is a highly unlikely
intervention that would only be considered in the event of a very severe
and prolonged emergency. Producers generally have long term contracts to
adhere to, and there are also possible constraints for the New Zealand
Refinery to refine domestic oil. If the Government were to intervene in
the domestic oil market it would likely only be to temporarily increase
production rates. We plan to further investigate issues like this and
others with the key stakeholders in an ongoing work programme following
the release of the Strategy. "

So, while the diversion of Tui production is not regarded as likely, it is clearly on the table.

As world oil supplies deplete, a "short-term" emergency has the potential to merge into a long-term emergency, so even though long-term response is the most important thing, it's worth keeping an eye on what this Strategy contains if you're interested in policy responses at a national level.

Regards
Tim Jones

Tags: Tui, depletion, disruption, domestic, emergency, oil, production, response, supply

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GenevievePermalink Reply by Genevieve on June 25, 2008 at 11:59am
Hi there Tim,

What do you think about electric cars? I've just come accross Shai Agassi, founder of Project Better Place, he's largely regarded as one of today's most pro-active eco-entrepreneurs. On this YouTube, he explains his business model, "Zero-Emissions for Zero-Dollars," at the recent "Plug-In Electric Vehicles 2008: What Role for Washington?". http://www.youtube.com/watch?v=7SkSyM0IcXA

The project plans to provide consumers with an affordable, convenient, and clean form of personal mobility on a mass scale. Agassi has already secured agreements with Israel, Denmark, and Renault/Nissan to create the infrastructure and technology necessary for an electric vehicle revolution. Word on the street is that San Francisco may soon get in on the action as well.

It was interesting because I've just recently watched "who killed the electric car". You may already be up on this kind of info, but just thought I'd share it along.

Regards,
Genevieve Simperingham, Whangarei
Samuel CampbellPermalink Reply by Samuel Campbell on June 25, 2008 at 12:30pm
It's a unicorn or a unknowingly red herring.

"an affordable, convenient, and clean form of personal mobility on a mass scale" = Bicycles

The electric cars have still got to generate there electricity from somewhere and that cannot be matched on top of what is already in demand for other energy users, homes, businesses, factories etc.
Tim JonesPermalink Reply by Tim Jones on June 25, 2008 at 4:36pm
Dear Genevieve and Samuel,

Thanks for these comments. I have heard of Project Better Place, and met one of its representatives. Whether their business model, in which individuals own electric cars but the company owns the batteries and the battery charging centres, would work in (and for) NZ, is another question. (I may be able to say more in future about this.)

On the more general question of whether electric cars have a role to play in NZ, opinions vary. The Electricity Commission thinks that, with overnight recharging, a substantial number of EVs can be added to the New Zealand fleet without greatly increasing the required generation capacity - see http://www.electricitycommission.govt.nz/opdev/modelling/EVs/ and the presentations linked from the bottom of this page.

Other researchers disagree, and think the EC is being over-optimistic - but I don't think those studies are publicly available at present.

I don't think there's much value in simply asserting that electric cars are good, bad, or a red herring. Any such statement doesn't mean much without evidence.

But bicycles are probably the most energy efficient form of transport available - and, incidentally, there are forty million electric bicycles in China. Electric transport isn't just about electric cars!
Samuel CampbellPermalink Reply by Samuel Campbell on June 26, 2008 at 10:07am
Electric Bicycles are cheating ;-)
Geoff. WaterhousePermalink Reply by Geoff. Waterhouse on June 27, 2008 at 5:14pm
I am not an oil expert, far from it, but i was told by someone, that I can't remember, that diversion of Tui production to Marsden Point? was not feasible because Tui oil is of "tui" (UGH terrible pun-sorry!)high a quality to be processed at Marsden Point because Marsden Point was built to process "rubbish" type oil. Care to rnlighten me a bit on that? Thanks
Tim JonesPermalink Reply by Tim Jones on June 27, 2008 at 10:09pm
Dear Geoff,

I've been trying to get a handle on that. Sebastian Bishop's reply (see original message above) appears to imply that it is feasible, but I don't know for sure. I'll try to find out.

Regards
Tim
Daryl NealPermalink Reply by Daryl Neal on June 28, 2008 at 3:53pm
Even if you live 5 ks up a steep hill and try to get two kids and the groceries home ;-)???
Deirdre KentPermalink Reply by Deirdre Kent on June 28, 2008 at 7:41pm
What a cracker of a response Daryl only possible from a Wellington young father. I am also thinking of it because we are ageing and live 6km from shopping on the flat in Otaki. Don't even know how to get one, tried on the web the other day but got nowhere.
Tim JonesPermalink Reply by Tim Jones on June 29, 2008 at 12:36am
If you Google "electric bicycles" in the New Zealand web space you will get hits on some importers, e.g. http://www.electricbikes.co.nz/ and http://www.teampoynter.co.nz/electricbikes.php. Consumer has a page on electric-assisted bikes, but the details are members' access only.

There's also electric scooters. e.g. http://www.evworld.co.nz/

Regards
Tim
Geoff. WaterhousePermalink Reply by Geoff. Waterhouse on June 29, 2008 at 1:29pm
Dear Tim,
Thanks for your reply. If it IS feasible, exporting crude oil, when we have our own refinery, and importing petrol seems about as logical as exporting logs, when we have paper mills closing, and importing paper from China AND , aprobably, borrowing the money from them to import it. I could start on about the China/NZ Free Trade Agreement, but then I would be at it all day so i will cease now. Look forward to hearing from you further Tim
Regards
Geoff. Waterhouse
Samuel CampbellPermalink Reply by Samuel Campbell on July 1, 2008 at 9:27am
Here is what I don't get about Wellingtonians. I'm Australian so having lived on comparatively flat land most of my life and a perfectly natural fear of heights why do people build houses on the top of hills where there are major fault lines.

I don't get it!
Samuel CampbellPermalink Reply by Samuel Campbell on July 1, 2008 at 9:28am
No go on about the China/NZ Free trade agreement. I could read it all day long.

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