Energy and Resources Minister Gerry Brownlee is calling for submissions on proposed changes to petroleum reserve reporting.The government hopes to improve management of the Crown petroleum estate and help attract private sector investment by improving the
Energy and Resources Minister Gerry Brownlee is calling for submissions on proposed changes to petroleum reserve reporting.
The government hopes to improve management of the Crown petroleum estate and help attract private sector investment by improving the quality of available information.
Current and forecast movements in oil and gas reserves are seen as particularly important.
At present, according to the Ministry of Economic Development, there is a “perceived lack of confidence in the accuracy, precision and consistency” of reserve information, which is collected by industry and published by government.
MED itself is concerned that it has insufficient information to correctly manage the Crown estate.
Better reporting on the upside potential of existing fields will also improve the market's ability to assess bullish views on future gas supplies.
Today’s paper, part of the government’s wider petroleum action plan, proposes three possible solutions:
- more extensive analysis but no regulatory change;
- extending requirements to include a wider range of potential resources, as done in the UK; or
- extending requirements further to allow a full independent assessment of reserves by government, as in Norway.
MED appears to consider the first option as too lightweight to meet objectives, the third as surplus to requirements at this stage (but an option for the future), and the second as a happy medium solution.
Submissions on the options paper are due on September 10, 2010.
