Environment/energy

New Zealand Parliament Repeals Offshore Oil and Gas Ban

JUL 31 2025·Updated AUG 1 2025

Story

Above: Simon Watts during the COP28, UN Climate Change Conference, on Dec. 9, 2023. Image credit: Dominika Zarzycka/NurPhoto/Getty Images

The Facts

New Zealand's parliament voted 68 to 54 on Thursday to repeal the 2018 ban on offshore oil and gas exploration through the Crown Minerals Amendment Bill, allowing companies to apply for petroleum exploration permits as early as September.
NZ Herald
OilPrice.com
FoxNews.com
The 2018 ban was implemented by the Labour government led by former Prime Minister Jacinda Ardern as part of its plan to transition toward a carbon-neutral future and tackle climate change by reducing reliance on fossil fuels.
The Straits Times
The Telegraph
ISEP
Climate and Energy Minister Simon Watts stated the ban sent "a chilling message" to investors, halting exploration that "underpins" energy security and leading to "supply constraints and price volatility."
NZ Herald
guardian
The coalition government allocated $200 million in its May budget to co-invest in new gas exploration and plans to boost mineral exports to $3 billion by 2035 while cutting funding to conservation and climate initiatives.
guardian
OilPrice.com
Meanwhile, a last-minute amendment weakened laws requiring oil and gas permit holders to pay for decommissioning and cleanup of wells, potentially reopening taxpayer liability after a previous $400 million cleanup bill.
RNZ
guardian
New Zealand Government
Opposition parties united against the bill, with Labour's Megan Woods calling it "ideological" and the Green Party's Steve Abel describing the decision as "shamefully regressive" and efforts to attract investors as "futile."
The Post
INKL
New Zealand Parliament

Sources Split

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The Spin

Pro-government narrative

The exploration ban severely impacted New Zealand's energy security and increased costs for ordinary families. Energy prices increased by over 10% while households used less power, and Transpower warned of blackout risks due to insufficient supply. Solar, wind and battery storage aren't emerging fast enough to replace dwindling gas reserves, leaving the country vulnerable to energy shortfalls.

New Zealand Parliament

New Zealand Government

Government-critical narrative

This government prioritizes multinational oil companies over climate action and New Zealand's international reputation. The egregious and deranged legislation comes just one week after the world's top court ruled that states must tackle fossil fuels or face reparations, highlighting the government's disregard for urgent climate responsibilities and international legal momentum toward fossil fuel accountability.