The New Zealand government is moving ahead with plans to lift a ban on offshore oil and gas exploration, citing energy security concerns over “rapidly” diminishing natural gas reserves.

According to a statement from Resources Minister Shane Jones, natural gas is essential to the economy during periods of peak electricity demand, especially when power generation from intermittent sources such as wind, solar, and hydropower declines.

This step comes after the administration of Prime Minister Christopher Luxon, who was elected last October, pledged to resume oil and gas exploration in seawater. New Zealand faces increasing energy security challenges. It is estimated that the country may exhaust its natural gas reserves within 10 years.

A draft law to lift the ban on offshore oil and gas exploration is scheduled to be submitted to Parliament in the second half of 2024, but the move faced strong criticism from Green Party leader Chloe Swarbrick, who described it as a “huge” step backwards in light of a “climate crisis”.

In 2018, New Zealand imposed a ban on granting new permits for offshore oil and gas exploration while Prime Minister Jacinda Ardern was in office. However, the country continued to allow onshore exploration projects.

New Zealand’s plans to lift the ban on offshore oil and gas exploration are considered an attemptto balance its short-term energy needs with its long-term commitments to achieving its climate goals.

The government notes that lifting the ban will contribute to ensuring the country’s energy security as it continues to develop renewable energy sourcesand could also lead to new investments worth NZ$10 billion in the oil and gas sector.