New Zealand’s government has announced plans to reverse the 2018 ban on offshore oil and gas exploration and take urgent steps to facilitate LNG imports, to help address the country’s energy shortfalls. The decision to lift the ban is driven by recent severe energy shortages which have caused price volatility. In August 2024, the weighted average wholesale electricity price is at a record high of NZ$492/MWh (~US$310/MWh), among the highest in the developed world. The ban had restricted exploration to onshore areas, contributing to sharp recent declines in both exploration drilling and gas production, while increasing the power sector’s coal usage.

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