The Wealth Beneath Our Feet

1. The Wealth Beneath Our Feet

2. We’re New Zealand’s foremost energy province

3. 625,315 dairy cattle; • 586,982 sheep • 109,700 people • Engineering, manufacturing, food processing • Mountain, sea/surf, • Lifestyle, • Tourism • Oil and gas industry

4. Our O&G Track Record Living in Taranaki, we know the oil and gas industry is an important industry. Pre-1865 – Early settlers were already complaining that the oily scum on Ngamotu beach (New Plymouth, Taranaki) required them to wipe their boots and lift their dresses when they walked along the sand. So we know the wealth can be literally under your feet (lesson 1)

5. O&G | History & lessons • June 1865 • Three men (Scott, Smith, MacDonald) began prospecting on the New Plymouth beach – but the trio didn’t have experience or permission and ran into Government red tape • Lesson 2: Government Red Tape has also long existed ....

6. O&G | History & lessons • June 1865 • Letters to the Taranaki Herald by vocal locals also complained about the three prospectors. Their key concerns: Prospector inexperience, not enough capital, concern for safety if the oil caught alight. • Lesson 3: Letters to the editor have long existed, O&G exploration is publically emotive , perceptions/concern over HSE are nothing new....

7. O&G | History & lessons • 1865 • The local publican joined the prospecting trio – he became their financier and spokesperson. • Soon a flurry of letters flowed to the Taranaki Herald defending the men. The group were finally granted a lease and serious work began. • Lesson 4: Communication between industry, stakeholders and community (formal or informal) is pivotal for a social licence to operate.

8. Today • Taranaki: New Zealand’s foremost energy province • Track record: 150 years in O&G • Commercially proven and developed fields • GDP: $2B Taranaki/$2.5B NZ • Industry infrastructure, supply chain, value chain, • O&G knowledge, lifestyle, ethos

9. History

10. Until recently … • O&G Industry was: • The quiet achiever, • Economically ‘There’ but not an item of attention and focus • Community • Left O&G to its own devices • Focus on other sectors

11. But the world changed and the sector needs to adjust ...

12. O&G Thrown into the economic spotlight … “Development of our natural resources, including oil and gas, is a pivotal component of New Zealand’s growth agenda”

13. Increasing public and Environmental Focus

14. The oil and gas industry needA Social Licence to Operate • Sector communication strategy • Definition of local benefits not national royalties • Importance of supply chains and local jobs • Land owners, Iwi (as indigenous people) and community consultation approach.

15. OGI | Value of Industry Report • New Zealand: • $2.5 billion • 7,700 jobs • Quantitative and qualitative benefits of industry. • Launched in Parliament, December 2010. • Foundation document • Wealth Beneath Our Feet report

16. Free O&G Portal | www.energystream.co.nz • www.energystream.co.nz • Purpose: positive promotion of the industry • Industry face – commercial neutral free connection hub • Suitable for range of audiences • Includes comprehensive company & capability database

17. But still work to do • Promoting rapid response environmental capability • Investigating benefits of new technologies • Retention of labour (e.g. FIFO’s) • Developing new markets for supply chains

18. www.taranaki.info www.energystream.co.nz