Energy in New Zealand 2017 - MBIE
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ENERGY AND BUILDING TRENDS
Energy in
New Zealand
2016 CALENDAR YEAR EDITION
2017 Comprehensive information on and analysis of
New Zealand’s energy supply, demand and prices
Energy in New Zealand 2017 provides annual information on and analysis of New Zealand’s
energy sector and is part of the suite of publications produced by the Energy & Building
Trends team of the Ministry of Business, Innovation & Employment (MBIE).
The 2017 edition includes information up to the end of the calendar year 2016.
Full data tables may be downloaded from the Energy in New Zealand webpage:
www.mbie.govt.nz/info-services/sectors-industries/energy/energy-data-modelling/
publications/energy-in-new-zealand
Prepared by: Important Acknowledgements
Energy & Building Trends
Use of this publication in paper or The authors are grateful to the
Evidence, Monitoring & Governance electronic form implies acceptance of individuals, companies and
the conditions of its release, which are organisations that provided information
Ministry of Business, Innovation & that if the information is made available and gave generously of their time to
Employment to others, its source must be assist with the work reported here.
acknowledged as the Ministry of
PO Box 1473, Wellington 6140 Authorship
Business, Innovation & Employment
New Zealand 2017 or by reference to the publication
title and date. This publication was prepared by the
Email: energyinfo@mbie.govt.nz Energy and Building Trends team of the
Although every attempt has been made Ministry of Business, Innovation &
© Crown Copyright 2017
to ensure the information is accurate, Employment. Principal contributors were
ISSN 2324-5913
neither the Crown nor any Minister, Nathan Young, Maria Botes, Jeff Lean,
employee or agent of the Crown: Hannah Talosaga, Michael Smith, Chris
• warrants the accuracy, completeness Barnett and James Hogan. The authors
or usefulness for any particular would like to thank New Zealand
purpose of the information contained Petroleum & Minerals and the MBIE
This work is licenced under a in this publication in paper or electronic Design team for their contribution to
Creative Commons Attribution 4.0 form; or this report.
International Licence. • accepts any liability for any loss or
Availability
damage, however caused, from the
reliance on or use of that information,
or arising from the absence of A free electronic version of this
information or any particular publication can be downloaded from:
information in this publication in paper www.mbie.govt.nz/info-services/
or electronic form. sectors-industries/energy/energy-data-
modelling/publications/
ISSN 2324-5913
September, 2017
© Crown Copyright 2017
The material contained in this report is subject to
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CONTENTS A. B. C. ENERGY ENERGY COAL OVERVIEW BALANCES 3 9 14 D. E. F. OIL AND GAS RENEWABLES ELECTRICITY 20 37 40
Quick facts for 2016
IV
1 petajoule (PJ)
is enough energy in a year to:
The Marsden Point
refinery produced
enough
jet fuel
Drive about
or Power about
30,000 40,000
cars on regular
petrol
households
with electricity
to fly around
the world roughly 1000 times
New Zealand produced
o
Domestic transport
enough energy to meet
82%
accounts for
of demand from oil
products
of its energy
requirements
o
There were
2,535
The Dubai Crude Oil
price averaged
$41 USD/bbl electric vehicles
in 2016, the lowest
in over a decade registered in NZ
at the end of 2016
All natural gas
75%
is produced and
consumed in the
North Island, 86%
of which comes
4 fields
from just
of coal production
was in the South Island
85%
of electricity
48%
of natural gas
was generated
from renewable demand comes
sources, a 35 year from the Chemical
high Manufacturing
industryMINISTRY
ENERGY INOF BUSINESS,
NEW ZEALANDINNOVATION
2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
A. ENERGY OVERVIEW
1
INTRODUCTION
Energy is an essential part of the economic and social
fabric of society. Energy consumption within a society is a
function of economic activity, population, the structure of
the economy, the climate, and energy resource availability.
This section considers New Zealand’s whole energy
system. The key data presented includes total primary
energy supply and total consumer energy. Some energy
sector performance indicators are also presented.Snapshot of energy in 2016
Supply Transformation Demand
Energy Supply Energy Demand
0.0% 1.0%
unchanged from 2015 levels from 2015 levels
Exports 19% in an environment of Transport demand 1.9% reaching a
low international commodity prices new high in 2016
The largest contributor was
Coal exports 12%, falling for
diesel use for land transport
the 4th year in a row
Oil exports 22%
Industrial demand 2.7%
after Methanex returned to
Production 2.4% from 2015 90% capacity
levels because of lower oil and
coal production
Energy Intensity (MJ/$GDP) 1
continues to improve,
it has improved by 1.2%
Imports 5.4% from 2015 levels
on average since 1990
mostly due to higher levels of
diesel entering the country
Improvements in Energy
NZ’s energy self-sufficiency intensity have been driven by
fell to 78% because of lower sustained economic growth
production and higher imports The statistical difference between calculated energy demand and observed energy demand has been apportioned proportional based on the in the Commercial Sector
observed demand in each sector.
Renewable energy was 40% On average the Commercial
Energy Transformation sector use about 8% the
of energy supply in 2016 amount of energy the
This produced
industrial sector 2 uses to
Hydro supply 5.6%, while 70 PJ of petrol
NZ Refinery intake was 252 PJ produce $1 of GDP
84 PJ of diesel
geothermal and other renewable in 2016 2.1% from 2015 levels 27 PJ of fuel oil 1. Energy use per dollar of GDP
supply fell
53 PJ of Aviation Fuel 2.Excludes Chemical and Metals
industries that have a small number
New Zealand has the of very heavy energy users
149 PJ of electricity was generated 85% of the electricity generated
4th highest in 2016 0.5% from 2015 levels was renewable, a 35 year high
renewable share in the OECD This was due to high hydro generationMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
3
Energy Demand
Consumer energy demand up 1.0% from 2015 levels,
led by higher Industrial and Transport demand
Figure A.1: Consumer energy demand by sector
600
500
400
Gross petajoules
300
200
100
0
1990 1996 2002 2008 2014
Residential Commercial and Public Services Agriculture, Forestry and Fishing Industrial Transport
Consumer energy demand and also drove a 8.9% years and continues to grow
continues to rise, up 5.9 PJ increase in non-energy alongside growth in the
for the fifth consecutive year use of gas.1 Excluding the New Zealand economy.
in a row. Chemicals sector, demand by
Demand by the Agriculture,
all other Industrial sectors
Industrial demand was a Forestry and Fishing sector
stayed at similar levels to
major contributor to growth offset the increases in
recent years.
in consumer energy demand, consumer energy demand,
up 2.7% (5.5 PJ) in 2016. Most Transport energy demand falling by 6.5% (2.2 PJ)
of this increase came from was up 1.9% (4.1 PJ) driven in 2016 and down for all
higher demand in the by growth in land transport fuel types. The fall in
Chemicals sector, where demand. Both petrol and this sector was driven
Methanex returned to near diesel use for land transport by lower electrical irrigation
full capacity after experiencing increased over the year, up demand due to higher
mechanical issues in 2015. 2.4% and 2.6% respectively. rainfall, and less heating
Energy use in the Chemicals Diesel use for land transport demand due to warmer
sector rose 14% over the year, has been trending up for many temperatures.
1 Non-energy use refers to the use of fuels to produce non-energy products. This mainly consists of natural gas being used to
produce methanol and urea, and oil being used to produce products such as bitumen for roading.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
4 Energy Supply
Primary energy supply remained unchanged from 2015 levels at 908 PJ
Supply = Production + Imports – Exports – Stock change
Energy supply growth was flat as higher imports and lower exports were offset by a fall
in energy production.
Figure A.2: Total primary energy supply by fuel
900
800
700
600
Gross petajoules
500
400
300
200
100
0
1974 1980 1986 1992 1998 2004 2010 2016
Coal Gas Hydro Oil Geothermal Waste Heat Other Renewables
Exports fell 19% to their lowest level since 2005
Figure A.3: Energy exports
200
Gross petajoules
150
100
50
0
1990 1995 2000 2005 2010 2015MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
The fall in exports was due National energy production 4.6% in 2016 because of 5
to a 15% fall in the production fell 2.4% because of large higher demand from the
of tradable commodities. falls in coal and crude oil Chemicals sector.
production
Crude oil exports fell 22% Higher imports saw
due to a 15% fall in production New Zealand’s energy
over the year. Production New Zealand self-sufficiency fall to 78%
was down in 2016 with Maari
experiencing a shutdown produced enough Energy imports rose 5.4%
over the year mainly because
at the end of the year. energy to meet of higher volumes of diesel
78%
At the same time, fields
being imported into the
experience natural decline
country. Oil imports reached
which means production with
their highest level on record,
fall further unless discoveries
up 5.4% or 3.2 million barrels,
are made or contigent
driven by a 41% increase in
resources are developed.
diesel imports. Increased
Coal exports fell to their of its energy imports saw New Zealand’s
lowest level since 1998 self-sufficiency fall from 81%
alongside continued soft
requirements to 78%. Self-sufficiency
international coking coal indicates the proportion
prices that has seen overall of New Zealand’s energy
Energy production fell 17.5 PJ
production fall in New Zealand. requirements that can be met
to 719 PJ in 2016. This was due
Production of bituminous coal by domestic production.
to falls in coal and crude oil
(used for coking), 98% of
production explained in the
which is exported, fell 14%
previous section. In contrast
over the year its 3rd
gas production increased
consecutive annual fall.
Energy Transformation
The conversion of primary energy to other forms flat (down 0.1 PJ) as a result of
of energy fell 5.0% steady production at the
Glenbrook steel mill during
Electricity generation fell electricity usage in periods
the year.
0.5% because of warmer and of typically high demand
wetter weather. The share of during the year reducing Output by the Marsden Point
electricity generation from the need for coal- and refinery fell 0.4% to 240 PJ
renewables reached a 35 year gas- fired generation. (or 40 million barrels). This
high at 85%. This was due to was driven by a fall in diesel
Fuel used for other
strong hydro inflows resulting output (down 9.5%) with
transformation, including
in a 5.6% increase in hydro output of other fuels up
coal used for steel
generation, and lower compared to 2015.
manufacturing, was relativelyMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
6
Energy Indicators
National energy intensity has improved by an average of 1.2% p.a. since 19902
Figure A.4 National energy intensity
New Zealand’s
4
energy intensity is
MJ per dollar of GDP
20%
3
2
1
higher than the
0
1990 1996 2002 2008 2014
OECD average
Figure A.5: Energy intensity for specific sectors
12
10
MJ per dollar of GDP
8
6
4
2
0
1990 1996 2002 2008 2014
Agriculture, Forestry and Fishing Commercial (excl. Transport)
Chemicals & Metals Industrial (excl. Chemicals & Metals)
2 National energy intensity is calculated as total energy used in the economy divided by total GDP of the economy.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Energy intensity is an indicator GDP, compared to 57% in 1990. compositional changes within 7
of how much energy is being This shift towards a more sectors, energy efficiency,
used to produce a dollar of service-based economy has or a combination of the two.
Gross Domestic Product (GDP). meant that the products and
This indicator improves if New services we provide as a Residential energy
Zealand uses less energy to country take less energy to demand fell despite
produce a dollar of GDP, so a produce.
continued population
continued fall in this indicator
shows improvement over time.
Another contributing factor growth
has been the improving trend Residential energy use fell
The improving trend has been in energy intensity for each 2.2% in 2016. Electricity
mainly driven by higher sector. Energy intensity for accounts for 70% of residential
economic growth in the the commercial sector has energy demand, and the fall in
Commercial sector, a sector improved over time 1.3% p.a. this sector was driven by
that is much less energy on average since 1990 because households using less
intensive than other sectors. GDP for the Commercial sector electricity particularly in
In 2016, the Commercial sector has increased at twice the rate periods when demand typically
used 0.37 MJ/dollar of GDP, of its energy use. The intensity peaks in the year — autumn
8.1% of what is used by the of energy use in the industrial 4 and winter. Average residential
Industrial sector (excluding sectors has also improved over electricity use per ICP5 was
Chemicals and Metals) for time. Energy use in this sector down 2.8% from 2015 levels,
every dollar of GDP created. has been relatively flat since and has been trending down
Although energy intensity has the 2008 recession while since 2009. The downward
been improving over time GDP for the sector has been trend in energy use per ICP
New Zealand still has the 7th increasing. As a result, the may be due to energy
highest energy intensity in the industrial sector’s energy efficiency improvements,
OECD – 20% higher than the intensity has improved by an demographic changes,
OECD average.3 average of 0.7% since 1990. weather variations, or a
Improvements in energy combination of these factors.
The Commercial sector has
intensity may be due to
risen to account for 62% of
Figure A.6: Residential energy use per capita
16000
Gross megajoules
per capita
15000
14000
13000
1991 1996 2001 2006 2011 2016
3 Latest data available from the International Energy Agency https://www.iea.org/
4 The Chemical and Metals sectors have been separated out from the Industrial sector as they have a small number of very
heavy energy users.
5 An Installation Control Point (ICP) is a customer connection.MINISTRY
ENERGY IN OF
NEWBUSINESS,
ZEALANDINNOVATION
2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
B. ENERGY BALANCES
8
INTRODUCTION
New Zealand’s energy production derives from both
renewable and non-renewable sources. New Zealand
imports and exports fossil fuels, which generate export
revenue, but also results in a dependency and
vulnerability to energy commodity prices that vary
according to international supply and demand factors
outside of New Zealand’s control.
The energy balance tables reflect how energy supply and
demand by sector varies by energy fuel type. Domestic
energy supply is derived from either indigenous
production or imported from overseas sources. In turn,
fuel types can be transformed into different forms of
energy, at the cost of losses and inefficiencies which vary
by transformation process. Supply, demand, losses and
inefficiencies are reflected in balanced energy supply and
demand tables.
Both the energy supply and demand dimensions of the
energy balance tables are derived from surveys spanning
different sources. An imbalance exists between the value
of consumer energy calculated from supply, and the value
of consumer energy observed from statistical measure.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
9
Interpretation of Table B.1: Default Electrical Transformation Factorsa
Energy Balance Fuel Default Efficiency
Tables Biogas 30%
Supply Coal 30%
Total primary energy is the Gas (Single Cycle)b 30%
amount of energy available for Geothermalc 15%
use in New Zealand. Much of it Hydro 100%
is converted into other forms
Oil 30%
of energy before it is used.
By convention, fuel used for Waste Heat 15%
international transport is Wind 100%
excluded from total primary Wood 25%
energy. Indigenous gas
production does not include
gas that is flared, reinjected, particularly in thermal before consumption, liquid
or LPG extracted. The primary electricity generation, as biofuel also appears in Energy
energy figures presented are much energy is lost as heat. Transformation under Fuel
actual data, except for some Production.
that go into electricity Transformation losses in
generation as detailed under electricity generation are Losses and own use in the
energy transformation. derived from the net energy balances include losses
electricity generated, with the before and after
Energy transformation actual fuel input being used transformation, losses and
where available and the own use in production,
Includes generation of
conversion factors shown transmission and distribution
electricity (including
in Table B.1 used otherwise. losses, electricity industry
cogeneration), oil production
Fuel input to biogas, hydro, own use free of charge, and oil
(including refinery operations
wind and waste heat are fully industry losses and own use
and the manufacture of
estimated. Quarterly figures (which includes distribution
synthetic fuel from natural
for electricity generation are tankage losses, stocks,
gas – Methanex ceased
made up of actual data from accounts adjustment and own
methanol to petrol production
major generators and the consumption). Transformation
in April 1999) and other
Electricity Authority. losses are excluded.
transformation, primarily
Estimates are made where
steel production. Non-energy use is primary
actual data are unavailable
energy used for purposes
In the Energy Transformation at the time of publishing.
other than combustion,
section of the balance tables,
Liquid biofuel production e.g. bitumen used in road
“energy in” is shown as
(bioethanol and biodiesel) construction, and natural gas
negative values and “energy
appears as renewable energy used as chemical feedstock in
out” as positive values in the
supply in the energy balance the production of methanol
appropriate fuel columns.
tables. As bioethanol and and ammonia/urea.
Transformation of energy from
biodiesel are generally blended
one form to another always
with motor petrol and diesel
results in conversion losses,
a Default efficiencies are only used where real data is unavailable.
b For combined cycle plants, the assumed efficiency is 55%. Currently, however, actual fuel input data are collected for all
combined cycle plants.
c Geothermal is predominantly based on real plant steam data and uses a 15% efficiency where these are unavailable.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
10 Treatment of Solar Demand energy for on-road, rail,
Photovoltaic Panels Consumer energy is the sea and air transport in the
amount of energy consumed transport sector, these sectors
Estimates of the amount of
by final users. It excludes follow the Australia New
electricity generated using
energy used or lost in the Zealand Standard Industrial
solar photovoltaics (PV) are
process of transforming Classification 2006 definitions.
included in the energy balance
tables in this edition of Energy energy into other forms and Annual figures presented for
in New Zealand. The total in bringing the energy to the consumer energy (observed)
primary energy supply of solar final consumers. For example, are actual data except for
is the sum of the direct use of natural gas is a primary energy thermal fuels used for
solar thermal (i.e. for hot water source (see Total Primary cogeneration in the industrial
heating), and the amount of Energy Supply), some of which and commercial sectors and
solar energy directly converted is transformed into electricity, biogas, wastes and wood.
into electricity via PV panels. of which some is lost in Estimates of on-site
Solar PV electricity generation transmission to consumers. cogeneration demand are
is estimated using data on the Consumer energy statistics included in electricity end use.
total installed capacity of can be either calculated from Where the energy end-use is
grid-connected solar PV supply-side data or observed not available or confidential,
installations in New Zealand , from usage data. the “unallocated” category
and then converted to output
Consumer energy (calculated) is used.
using an assumed capacity
factor of 14% (i.e. the solar forms the top half of the International transport
panels produce their full energy balance tables and is includes international sea
output 14% of the time). calculated as TPES less energy and air transport. It excludes
Consumption of solar thermal transformation less non- coastal shipping, national
is included in the demand energy use. air transport and all land
section of the energy balance transport.
Consumer energy (observed)
table under Renewables –
forms the bottom half of the Statistical differences
Solar, whereas the
energy balance tables and it shows the difference
consumption of electricity
represents reported demand between “consumer energy
generated by solar PV panels
in the agriculture, forestry and (calculated)” and “consumer
appears under Electricity. Solar
fishing; industrial; commercial; energy (observed)”. This
PV consumption by sector is
transport and residential difference is shown at the
apportioned using data from
sectors. With the exception bottom of the energy
the Electricity Authority.
of domestic/national use of balance tables.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
11MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017 MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
12 Table B.2: Energy Supply and Demand Balance, Calendar Year 2016 13
NATURAL RENEWABLES ELECTRICITY WASTE TOTAL
COAL OIL
Converted into GAS HEAT
Petajolues using Bituminous Lignite Total Crudes/ LPG Petrol Diesel Fuel Av. Others Total Total Hydro Geothermal Solar Wind Liquid Biogas Wood Total Total Total
Gross Calorific Values & Sub- Feed- Oil Fuel/ Biofuels
stocks/
bitum. NGL Kero
Indigenous Production 68.13 4.78 72.91 74.16 8.33 82.49 196.79 93.26 201.84 0.55 8.32 0.13 2.71 58.27 365.08 1.41 718.68
+ Imports 10.16 0.00 10.16 245.19 1.20 44.16 47.51 - 9.84 5.90 353.80 363.96
– Exports 37.83 - 37.83 66.27 1.22 - - 5.10 - - 72.58 110.41
– Stock Change -6.94 0.10 -6.85 -1.56 0.00 2.03 2.23 4.60 -0.61 2.05 8.74 0.97 2.86
– International Transport 0.00 1.88 11.26 48.56 - 61.70 61.70
SUPPLY
TOTAL PRIMARY ENERGY 47.40 4.69 52.09 254.64 8.30 42.13 43.40 -20.95 -38.10 3.85 293.27 195.82 93.26 201.84 0.55 8.32 0.13 2.71 58.27 365.08 1.41 907.68
ENERGY TRANSFORMATION -26.28 -0.29 -26.58 -252.55 -0.00 69.83 83.74 26.82 53.64 6.56 -11.96 -56.36 -93.26 -194.19 -0.19 -8.32 -0.13 -2.38 -4.66 -303.12 141.44 -1.41 -257.99
• Electricity Generation -4.84 - -4.84 -0.02 - -0.02 -37.76 -93.26 -192.49 -0.19 -8.32 -1.37 -295.62 148.97 -189.28
• Cogeneration -7.24 -0.25 -7.49 -12.88 -1.70 -1.01 -4.66 -7.37 7.77 -1.41 -21.38
• Fuel Production -252.47 69.79 83.87 26.81 53.59 13.80 -4.62 - -0.13 -0.13 -4.75
• Other Transformation -11.70 - -11.70 -11.70
• Losses and Own Use -2.50 -0.04 -2.54 -0.08 -0.00 0.04 -0.11 0.01 0.05 -7.24 -7.33 -5.72 -15.30 -30.89
Non-energy Use -10.41 -10.41 -58.15 -68.56
CONSUMER ENERGY (calculated) 21.12 4.40 25.51 2.09 8.30 111.96 127.14 5.87 15.54 - 270.90 81.31 7.65 0.36 - - 0.33 53.62 61.96 141.44 - 581.12
Agriculture, Forestry 1.49 0.02 1.52 0.08 1.53 15.97 1.38 - 18.97 1.61 0.60 0.60 9.23 31.93
and Fishing
• Agriculture 1.48 0.02 1.51 0.08 1.42 11.29 - - 12.80 1.61 0.60 0.60 8.80 25.31
• Forestry and Logging 0.01 - 0.01 0.01 3.32 - - 3.33 0.00 0.33 3.66
• Fishing - - - 0.10 1.37 1.38 - 2.85 - 0.10 2.95
Industrial 19.80 3.78 23.59 3.31 0.41 15.20 1.02 - 19.93 65.74 4.51 0.05 45.50 50.06 52.72 212.03
• Mining - - - 0.00 2.74 - - 2.74 0.13 1.30 4.17
• Food Processing 13.71 3.76 17.48 - - - - - 15.46 9.07 42.00
• Textiles 0.08 - 0.08 0.56 0.35 0.99
• Wood, Pulp, Paper and 0.57 0.02 0.59 5.56 9.76 15.91
DEMAND
Printing
• Chemicals 0.00 - 0.00 39.18 2.90 42.08
• Non-metallic Minerals 3.06 - 3.06 1.52 1.04 5.62
• Basic Metals 0.01 - 0.01 - - - - - 2.43 23.23 25.68
• Mechanical/Electrical 0.00 - 0.00 0.28 0.62 0.90
Equipment
• Building and - - - 0.04 4.52 0.03 - 4.59 0.49 1.43 6.50
Construction
• Unallocated 2.35 - 2.35 3.31 0.36 7.94 0.99 - 12.61 0.13 4.51 0.05 45.50 50.06 3.03 68.18
Commercial 0.68 0.55 1.23 1.48 0.45 4.82 0.04 - 6.79 8.12 2.25 0.28 2.53 34.10 52.77
Transport 0.00 - 0.00 0.31 110.01 89.72 4.11 13.57 217.73 0.02 - - 0.22 217.97
Residential 0.18 0.16 0.34 3.22 0.05 0.12 - - 3.39 6.36 0.30 0.36 8.12 8.78 44.02 62.90
CONSUMER ENERGY (observed) 22.16 4.52 26.68 - 8.41 112.45 125.83 6.55 13.57 - 266.82 81.83 - 7.65 0.36 - 0.33 53.62 61.96 140.30 - 577.60
Statistical Differences -1.05 -0.12 -1.17 2.09 -0.11 -0.48 1.30 -0.68 1.96 - 4.08 -0.53 - - - - - - 1.14 - 3.53MINISTRY
ENERGY INOF BUSINESS,
NEW ZEALANDINNOVATION
2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
C. COAL
14
INTRODUCTION
This section contains information about coal production
(supply) and sales to consumers (demand). Information on
coal is presented for the 2016 calendar year. Background
information on New Zealand’s coal industry can be found
on the New Zealand Petroleum and Minerals website:
http://www.nzpam.govt.nz/cms/investors/our-resource-
potential/minerals/coal
MINING AREAS
NORTH ISLAND SOUTH ISLAND
Waikato West Coast Canterbury Otago Southland
PRODUCERS*
SOLID ENERGY OTHER PRODUCERS IMPORTS
• Takitimu Coal
• New Zealand Coal and Carbon
• Birchfield Coal Mines
• Cascade Coal
• Puke Coal
• Kaipoint Coal Co
and about seven smaller producers
CONSUMERS
NZ Steel Overseas Markets Industry Genesis
Steel Manufacture Export Commercial Electricity
Residential Generation
Domestic
Consumers
Note:
Company names are listed without the suffixes Limited and New Zealand Limited where applicable.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Figure C.2: Coal Energy Flow Diagram for 2016 15
Production Minus Exports Plus Imports Consumption
80
Losses and own use*
Stock Change
60
Exports
Opencast Coking
Imports
Electricity
PJ
40 Underground Coking
Opencast Bituminous
Other
Transformation
Opencast
20 Sub-Bituminous
Industrial
Underground Sub-Bituminous
Opencast Lignite Other†
0
* Includes use at production sites and distribution losses.
† Includes commercial, residential, agriculture and transport.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
16
Coal Supply North Island – for the most in these areas is used
part coal produced in the in the manufacture of
Total coal supply fell 14%
North Island is used in the dairy products.
to 52 PJ (2.5 million tonnes)
North Island, and in 2016
as a result of falling Closures of mines at the
production fell 26%. The falling
production destined for end of 2015 impacted 2016
trend in this area has been
both the North Island production levels. The
driven by less coal being used
and international markets. underground Huntly East
for electricity generation.
mine was closed, while the
West Coast – coal produced Strongman, Cascade and
Coal production at a on the West Coast is mainly Escarpment opencast
25
for export to international mines were put into care
markets. Production in this and maintenance primarily
area fell 14%, its third annual in response to market
fall in a row. West Coast conditions.
production has been falling
Solid Energy produced 68%
alongside falling international
year low coal prices.
of national production in 2016,
but has been operating under
Rest of the South Island – voluntary administration since
production in these remaining August 2015. The company’s
Coal production fell 15% areas are mainly for domestic assets have recently been
because of decreases in use. In contrast to falling sold to other coal companies,
production in the North production in other areas, a process that was completed
production in the South Island in August 2017.
Island and West Coast
outside of the West Coast
New Zealand produced 73 PJ rose 10% over the year. This Exports fell 12% because
(3.0 million tonnes) of coal in continues an upward trend in of lower production on
2016, the lowest annual production in this area over
production since 1991 and the West Coast
time. Coal is an important fuel
a 15% fall from 2015. Coal for industry in the South Island In 2016, New Zealand exported
production can be split into because unlike the North 38 PJ (1.2 million tonnes) of
three geographic areas with Island there is no natural gas coal and imported 10 PJ (0.5
different economic drivers. source. A large portion of coal million tonnes). Coal exports
fell for the fourth consecutive
year in a row, and are now at
their lowest level in 18 years.
Figure C.3 Coal production by geographic area
This is mainly been due to
international coal prices falling
3
to low levels in 2012. Prices
began to trend up at the end
of 2016 but remain volatile.
Coal is only exported from
the West Coast, where most
2
of it goes to the India
Million tonnes
and Japanese markets.
New Zealand exports mostly
Bituminous coal (a coking coal)
but does export smaller
1
amounts of thermal and
specialist coals.
0
1998 2004 2010 2016
North Island West Coast Rest of South IslandMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Figure C.4: Bituminous coal exports 17
90
Gross petajoules
60
30
0
1989 1998 2007 2016
Coal Use ›› There has been strong The two remaining Huntly
supply of renewables for Rankine units are the only
Coal use has historically
electricity generation. major electricity plant that
been dominated by electricity
New geothermal can be run on coal. They are
generation. In recent years,
generation has come important for New Zealand’s
falling use of coal for
security of electricity supply
electricity generation has online in the last decade
requirements in a dry year
seen the Industrial sector that reduces the need for
to meet winter energy and
become the dominant user. baseload gas generation. peak demand requirements.
In 2016 there was Although these units haven’t
Coal used in electricity particularly strong been running on coal very
generation fell 60% hydro inflows which often in recent years, a dry
because of wetter saw the share of year could see coal use rise
weather electricity generation above historical lows.
In 2016 the amount of coal from renewable sources Other transformation
used for electricity fell to reach a 35 year high. (including coal used as
its lowest level since 1994. ›› Genesis Energy’s closure a reductant in steel
There are several factors manufacturing) remained
of two of its four coal/gas
for the continued fall in coal at a similar level to recent
Huntly Rankine units in
being used for electricity years, down 1.2% from 2015.
recent years, and running
generation, including:
the remaining units
predominantly on gas.
Figure C.5 Coal used for electricity generation
50
Gross petajoules
40
30
20
10
0
1990 1996 2002 2008 2014MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
18 Coal consumption up alongside higher production in the South Island
Figure: C.6 Coal consumption by sector
30
Gross petajoules
20
10
0
1990 1996 2002 2008 2014
Industrial Agriculture, Forestry and Fishing Commercial (incl. Transport) Residential
Coal consumption has been Resources More information on the
relatively steady in recent New Zealand coal industry is
New Zealand has extensive
years, up 2.3% to 27 PJ available on the New Zealand
coal resources, mainly in the
(1.3 million tonnes) from Petroleum and Minerals
Waikato and Taranaki regions
2015. The rise in coal website: http://www.nzpam.
of the North Island, and the
consumption sits alongside govt.nz/cms/investors/
West Coast, Otago and
growing production in the our-resource-potential/
Southland regions of the
South Island. The industrial minerals/coal.
South Island. It has been
sector contributed the most
estimated that national
to the rise in consumption,
in-ground resources of
up 4.4% over the period. Just
all coal are over 15 billion
under half of New Zealand’s
tonnes, although 80% of
coal use in 2016 was used in
this is lignite in the South
the Industrial sector, primarily
Island. Sub-bituminous
to generate heat for industrial
and bituminous in-ground
processes.6 Industrial coal use
resources are around 4 billion
is primarily for meat, dairy, and
tonnes, but economic reserves
cement, lime and plaster
are much smaller.
manufacturing.
6 For more data on process heat in New Zealand, see http://www.mbie.govt.nz/info-services/sectors-industries/energy/
energy-efficiency-environment/process-heat-in-new-zealand/dataMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Figure: C.7 Location of New Zealand coal resources and coal production in 2016 19
Hikurangi Northland
Kamo
Huntly Coalfield
25 kt SB
Maramarua
Waikato Huntly Waikare
Rotowaro Coalfield Rotowaro
655 kt SB
Kawhia Tihiroa
Mangapehi
Mokau
Taranaki Waitewhena
Ohura-Tangarakakau
Buller Coalfield
991 kt B
Buller
Inangahua
Nelson-Westland Reefton
Garvey Creek
Pike River
Greymouth
Greymouth Coalfield
192 kt B Malvern Hills
Canterbury
Mt. Somers
St. Bathans Mine Production 2016
Ohai Coalfield
kt = kilotonnes
342 kt SB Otago
Roxburgh B = Bituminous
SB = Sub-bituminous
Ohai L = Lignite
Kaitangata
Southland Southland Lignites 0 200 km
311 kt LMINISTRY
ENERGY INOF BUSINESS,
NEW ZEALANDINNOVATION
2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
D. OIL AND GAS
20
INTRODUCTION
This section contains information on New Zealand’s oil and gas
industry, presented for the 2016 calendar year. Oil and gas reserves
are presented first, followed by oil and gas supply and demand.
More information on oil and gas exploration in New Zealand can
be found on the New Zealand Petroleum and Minerals website:
http://www.nzpam.govt.nz/cms/investors/our-resource-potential/
petroleum
Percentage changes in this section are calculated based on
petajoules. This controls for differences in the energy content of
different oil product types, and gas produced from different fields.
Liquified petroleum gas (LPG) data is presented in the Oil section.MINISTRY
ENERGYOFINBUSINESS, INNOVATION
NEW ZEALAND 2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Oil and Gas
OIL
21
Figure D.1: Oil market summary for the 2016 1
Ngatoro2
FIELDS 1.3%
BY PRODUCTION
Kowhai
1.1%
Kupe Tui Maui Turangi Kapuni
9.5% 9.9% 7.0% 2.1% 1.8%
Maari Pohokura McKee/Mangahewa Rimu Other3
35.6% 21.7% 6.2%
3.7%
PRODUCERS
Origin Energy 50% OMV 69% AWE 57.5% Shell (Exp) 48% Shell 83.75% Todd Energy Greymouth Origin Energy Shell 50%
Oil
Genesis Energy 31% Todd 16% NZOG 27.5% OMV 26% OMV 10% 100% 100% 100% Todd Energy Imports4
NZOG 15% Horizon 10% Pan Pacific 15% Todd Energy 26% Todd Energy Operator: Operator: Operator: 50%
6.25% Todd Energy Greymouth Origin Energy Operator: Shell
Mitsui E&P 4% Cue Taranaki 5% Operator: AWE Operator: Shell
Todd Oil Services
Operator: Origin Energy Operator: OMV Operator: Shell
Todd Oil Services
McKee Blend5
REFINERS/ Refinery Feedstocks
BLENDERS
NEW ZEALAND REFINING COMPANY
Owned by: BP, Mobil, Z Energy,
and others
Refined Products
WHOLESALERS BP, Mobil , Z Energy
Oil products are distributed via pipeline Gull
(from the refinery only), coastal tanker and/or road
DISTRIBUTORS Independent Distributors
RETAILERS
BP, Independent
Mobil, Z Service Stations Gull
CONSUMERS
Exports Agriculture Transport Industrial Commercial Residential
Company names are listed without the suffixes “Limited” and “New Zealand Limited” where applicable and subsidiaries are listed as the
parent company. The companies are: AWE is Australian Worldwide Exploration Limited, Chevron is Chevron NZ (includes Caltex New Zealand
Limited), Greymouth is Greymouth Petroleum Holdings Limited, Mitsui E&P is Mitsui E&P Australia Pty, ExxonMobil is ExxonMobil New
Zealand Holdings (includes Mobil Oil New Zealand Limited), NZOG is New Zealand Oil and Gas, OMV is OMV New Zealand Limited (Österr
Mineralöl Verwaltung), Origin Energy is Origin Energy New Zealand Ltd and Contact Energy (51% owned by Origin), Shell is Shell NZ Limited
(includes Shell Exploration NZ Limited, Shell (Petroleum Mining) Energy Petroleum Holdings Limited, Energy Petroleum Investments Ltd,
Energy Petroleum Taranaki Ltd and Taranaki Offshore Petroleum Company), TWN comprises the Tariki, Waihapa and Ngaere fields.
Notes:
1 Ownership as at 31 December 2016. Tamarind Management ownership of AWE share of Tui took effect in early 2017.
2 Kaimiro, Ngatoro and Windsor fields were combined as a single permit area in 2010. All these fields are included here, as is Moturoa.
3 Includes Cheal, Sidewinder, Copper Moki, TWN, Surrey, Onaero and Puka fields, and Radnor well. Cheal and Sidewinder are owned by Tag
Oil Limited. Surrey and Onaero are owned and operated by Greymouth Petroleum. Copper Moki is owned by New Zealand Energy Corp.
TWN is jointly owned by New Zealand Energy Corp and L&M Energy, and operated by New Zealand Energy Corp. Puka is owned by Kea
Petroleum Holdings and MEO Australia and operated by Kea Petroleum Holdings.
4 Crude and refined product are imported by the four large oil companies. Refined product is imported by Gull Petroleum.
5 Source: Shell NZ Limited.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
22 Figure D.2: Oil Energy Flow Summary for 2016
PJ
CRUDE, CONDENSATE AND LPG
→ REFINERY
→ PETROLEUM PRODUCTS
mmboe*
Refinery Own Use Refinery Exports, Stock Change 60
Production and Statistical Output and LPG and Statistical
and Imports Stock Change Exports Difference Supply Product Imports Difference Consumption
Product Stock
Change and
350 Statistical Difference
Other
Product
Exports
Non-energy
Use
Losses &
LPG Own Use
Diesel 50
Crude Oil
and
300 Condensate International
Transport
Petrol
Statistical
Difference
Agriculture
Own Use
250 40
Industrial
Aviation
Fuel Other
Imported
Crude
200
Other 30
Fuel Oil
150
Domestic
20
Diesel Transport
100
10
50
Indigenous
Production Petrol
LPG
0 0
*Million barrels of oil equivalent.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
23
Oil supply natural gas liquids peaked in Oil production at its
2008 at 128.3 PJ. Since then
lowest
Production of crude oil production has fallen 42% to
fell 15.1% because of 74.2 PJ. This is symptomatic of
natural field exhaustion and
diminishing production
no further major fields having
level
from existing fields
been identified since Tui
Indigenous production of entered production in 2007.
crude oil was down 15.1% for
2016, a 10 year low. This was Exports are down 22%
influenced by a two month
because of lower levels in a decade
shutdown of the Maari field at
the end of 2016 after a crack of production
was discovered in the well Overall exports fell to 72.6 PJ
head platform. The remaining because of lower production. Oil imports up 5%
reduction can be attributed to The reduction in exports is
because of higher
inter-year variability and long a result of the reduction in
output from Maari combined
demand for diesel
term field decline across many
fields. Production from with long term field decline Despite increased
existing fields continues to overall. consumption of diesel,
trend down over time. New domestic refinery output of
Zealand indigenous production diesel decreased 9.5% (8.8 PJ).
of crude oil, condensate, Increased demand for diesel
naphtha, and was met by higher imports, up
41% (13.8 PJ) from 2015 levels.
Figure D.3: New Zealand annual oil production*
Mangahewa Tui Maari, Kupe,
and Kowhai
3000
Pohokura
TarikiAhuroa Rimu
Waihapa Turangi
Ngatoro Cheal
Kilotonnes
2000
McKee
Kapuni Maui
1000
0
1978 1984 1990 1996 2002 2008 2014
*Field names indicate when the field started producingMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
24
Oil use Figure D.4: Oil imports by region of origin
Oil consumption grew
2.2% because of higher
domestic transportation 3000
Overall consumption was
up 5.6 PJ in 2016 driven
Million tonnes
mainly by gains in the
2000
domestic transport sector,
which was up 2.0% (4.2 PJ).
The industrial sector grew
by 7.5% (1.4 PJ), almost all 1000
of which was an increase
in diesel consumption.
Diesel consumption continues
to grow, up 2.7% (3.3 PJ) 0
1978 1984 1990 1996 2002 2008 2014
alongside light and heavy
commercial vehicle growth.
Premium petrol consumption Asia Middle East Other
also increased, up 7.9% in
the past year. However,
it is difficult to attribute
this movement to any longer
9.3% (1.1 PJ), driven by strong refinery output of jet fuel,
term trend.
demand from international up 7.9% (3.9 PJ), and increased
Jet fuel consumption also flights. The stronger demand imports of jet fuel, up 236%
continues to increase, up for jet fuel has seen increased (6.6 PJ).
Figure D.5: Oil products consumed for domestic transportation
200
150
Gross petajoules
100
50
0
1974 1980 1986 1992 1998 2004 2010 2016
Diesel Premium Petrol Regular Petrol Aviation Fuels Fuel Oil LPGMINISTRY
ENERGY INOF BUSINESS,
NEW ZEALANDINNOVATION
2016 AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Oil and Gas
GAS
25
Figure D.6: Natural Gas Industry Summary for 2016
FIELDS 0.5% 15.2% 13.7% 0.6% 1.8% 4.7% 0.0% 3.4% 0.2% 0.0%
BY PRODUCTION McKee Mangahewa Kupe Ngatoro2 Kowhai Turangi Onaero Other3 Cheal Sidewinder
0.6% 16.1% 13.1% 0.6 2.1% 5.3% 0.0% 0.1% 0.2% 0.0%
16.6% 4.5% 38.2% 0.4%
Maui Kapuni Pohokura Rimu/Kauri
ABOVE = GROSS 17.8% 4.9% 38.9% 0.3%
BELOW = NET
PRODUCERS
Todd Taranaki Shell 83.75% Origin Energy 50% Shell 50% Greymouth Shell 48% Origin Energy TAG Oil
100% OMV 10% Genesis Energy 31% Todd Energy 100% Todd Energy 26% 100% 100%
Todd Energy NZOG 15% 50% OMV 26%
6.25% Mitsui E&P 4%
Operator: Operator:
Operator: Operator: Operator: Shell Todd Operator: Operator: Operator: Cheal
Todd Shell Todd Origin Energy Oil Services Greymouth Shell Origin Energy Petroleum
WHOLESALERS Greymouth
Vector Todd Energy Contact Energy
Petroleum
TRANSMITTERS
HIGH PRESSURE FirstGas
DISTRIBUTORS
LOW PRESSURE
Powerco Nova Energy Vector GasNet
RETAILERS
Genesis Energy Energy Online Nova Energy On-Gas Contact Energy GasNet Greymouth Gas Mercury Energy
CONSUMERS
Major users supplied Users supplied from Methanex Limited Ballance Agri-Nutrients Contact Energy
directly from the distribution systems Limited
transmission system Chemical methanol Genesis Energy
Other industry, manufacture Ammonia/urea manufacture
Methanex Mercury Energy
commercial,
Ballance Agri-Nutrients
residential,
New Zealand Steel Electricity generation
transport (as CNG)
Carter Holt Harvey
Degussa Peroxide
Fonterra Co-operative
Todd Energy
Refining NZ
Tasman Pulp and Paper
among others
Company names are listed without the suffixes “Limited” and “New Zealand Limited” where applicable. AWE is Australian Worldwide
Exploration Limited, Greymouth is Greymouth Petroleum Limited, Mitsui E&P is Mitsui E&P New Zealand Limited, NZOG is New Zealand Oil
& Gas Limited, OMV is OMV New Zealand Limited, Contact Energy is Contact Energy Limited, Origin Energy is Origin Energy New Zealand Ltd
and Contact Energy (51% owned by Origin), Pan Pacific is Pan Pacific Petroleum, Shell is Shell NZ Limited (includes Shell Exploration NZ
Limited, Shell (Petroleum Mining) Co Limited, Energy Petroleum Holdings Limited, Energy Petroleum Investments Ltd, Energy Petroleum
Taranaki Ltd, Energy Finance New Zealand Limited and Taranaki Offshore Petroleum Company), TWN comprises the Tariki, Waihapa and
Ngaere fields, Todd Energy is Todd Energy Limited and includes Nova Gas, Vector is Vector Limited and includes OnGas, Wanganui Gas is
Wanganui Gas Company Limited. Nova Energy is Nova Energy Limited.
Notes:
1 Gas ownership as at year end 2016; excludes LPG. Does not show changes in ownership that occurred after 31 Dec 2016.
2 Includes Kaimiro, Windsor and Goldie wells.
3 Includes Maari, Tui, TWN, Copper Moki, Puka and Surrey fields. Maari is owned by OMV, Todd, Horizon, and Cue Taranaki and operated by
OMV. Tui is owned by AWE, NZOG and Mitsui E & P and operated by AWE. TWN is owned by New Zealand Energy Corp and L & M Energy
and operated by New Zealand Energy Corp. Copper Moki is owned by New Zealand Energy Corp. Surrey is owned and operated by
Greymouth. Puka is owned by Kea Petroleum Holdings and MEO Australia and operated by Kea Petroleum Holdings.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
26 Figure D.7: Natural Gas Flow Summary for 2016
PJ PRODUCTION
→ PROCESSING & TRANSMISSION
→ STOCK CHANGE
→ CONSUMPTION Mm3
5000
200 LPG Extracted
Losses and Own Use
Gas Flared
4500
Gas Reinjected
Statistical Difference
Transmission Losses Stock Change
Pohokura 4000
Non-Energy Use
150
3500
3000
Maui
Electricity
Generation
2500
100
Cogeneration 2000
Kupe
1500
Kapuni
50
Industrial
Mangahewa 1000
Turangi 500
Kowhai
Maari Commercial*
McKee
Other Residential
0 0
* Includes transport, agriculture, forestry and fishing.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
27
Gas use bounced back in 2016 with Non-energy use of gas
Methanex returning to near rose 16% after Methanex
Gas use increased in 2016
full capacity after experience returned to normal
largely because of bounce
mechanical issues in 2015.
back in consumer demand production levels
and non-energy use from The long term trend in Movements in gas use this
the Chemical Manufacturing Commercial, Industrial and year were heavily influenced
sector. However, gas use for Residential sectors is largely by Methanex production, with
electricity generation fell to one of growth. The industrial non-energy also bouncing
historical lows. sector has been growing back, up 8.0 PJ in 2016.
rapidly since 2006, primarily
Gas consumption being driven by growth
rose 3.8% because in chemical manufacture.
The Food Processing industry
of increased demand
grew by approximately
from the Chemical
50% between 2009 and
Manufacturing sector 2010 and has been largely
Gas consumption rose level since then. In contrast,
3.0 PJ in 2016. The Chemical gas consumption has
manufacturing sector was the been declining in the
major contributor to the rise, Agriculture, Forestry,
up 15.1%(5.1 PJ). Consumption and Fishing sector.
Figure D.8: Gas consumption by sector
80
60
Gross petajoules
40
20
0
1990 1996 2002 2008 2014
Industrial Agriculture, Forestry and Fishing Commercial (incl. Transport) ResidentialMINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
28 Gas used to fuel 35 year low. Fuel input for normal. The long term trend
electricity plants fell cogeneration also fell by 15.4% for gas consumption in
to a 35 year low because (2.3 PJ). The reduction in gas electricity generation and
fuel input is a result of greater cogeneration has been one of
of wetter weather
volume of hydro being decline since 2001. More detail
Gas fuel input for electricity available because rainfall about this decline is discussed
plant fell 8.4% (3.5 PJ) to a levels were higher than in the electricity section.
Figure D.9: Gas used for electricity generation
90
Gross petajoules
60
30
0
1974 1980 1986 1992 1998 2004 2010 2016
86%
Gas supply
Natural gas production
rose 5.2% (9.4 PJ) mostly
due to higher production
at Mangahewa of gas produced
Mangahewa production rose
31% (7.3 PJ) and Pohokura rose comes from
11% (7.2 PJ). In New Zealand all Pohokura, Maui,
natural gas is produced and
consumed in the North Island, Mangahewa,
and 86% of it comes from just and Kupe
four fields (Pohokura, Maui,
Mangahewa, and Kupe).MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017 Figure D.10: New Zealand Natural Gas Transmission Pipeline 29
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
30
Oil, Gas, and LPG reserves, less production to ›› 440 PJ for oil and
date. The most certain reserves condensate
Reserves figures are presented as
Reserves are the estimated ›› 70 PJ for LPG
“proved” (1P), followed by
total amounts of oil and gas “proved plus probable” (2P),
that are able to be recovered then “proved plus probable Ultimate recoverable
from a known petroleum plus possible” (3P). reserves (2P) for 2016 were:
reservoir. Ultimate recoverable
reserves are the total At the end of 2016 ›› 8,577 PJ for natural gas
economically recoverable remaining recoverable
reserves (2P) were: ›› 3,340 PJ for oil and
reserves before any oil or gas is
condensate
produced. Remaining reserves
are ultimate recoverable ›› 2,020 PJ for natural gas. ›› 246 PJ for LPG
Table D.1: Oil and Condensate Reserves – as at 1 January 2017
Field Type Ultimate Ultimate Remaining Remaining
Recoverable (1P) Recoverable (2P) Reserve (1P) as at Reserve (2P) as at
1 January 2017 1 January 2017
Mm3 mmbbls PJ Mm3 mmbbls PJ Mm3 mmbbls PJ Mm3 mmbbls PJ
Pohokura Condensate 9.5 59.5 330.6 9.9 62.1 345.2 2.8 17.6 97.8 3.2 20.2 112.3
Maari Crude Oil 6.5 40.9 243.2 7.1 44.7 265.5 1.2 7.9 46.5 1.8 11.6 68.8
Turangi Condensate 1.3 8.1 40.7 2.2 14.1 70.6 0.8 4.9 24.8 1.7 10.9 54.6
Mangahewa Condensate 1.4 8.6 55.1 1.9 11.6 74.3 0.7 4.2 26.7 1.1 7.2 45.9
Kupe Condensate 3.0 19.1 105.5 3.3 20.9 115.0 1.3 8.2 45.3 1.6 9.9 54.8
Maui Condensate 35.6 223.6 1274.5 35.8 225.4 1284.9 0.6 3.7 21.0 0.9 5.5 31.4
Cheal Crude Oil 0.7 4.2 25.3 1.0 6.4 38.0 0.2 1.3 7.6 0.5 3.4 20.3
Tui Crude Oil 6.3 39.9 217.3 6.6 41.4 225.3 0.1 0.4 2.1 0.3 1.9 10.1
Kowhai Condensate 0.4 2.4 14.6 0.5 3.2 19.7 0.2 1.0 6.4 0.3 1.9 11.5
McKee Crude Oil 7.6 47.5 287.8 7.6 47.9 290.2 0.0 0.1 0.4 0.1 0.5 2.8
Waihapa/ Crude Oil 4.0 24.9 148.1 4.0 25.4 150.9 0.2 1.0 6.0 0.2 1.5 8.8
Ngaere
Ngatoro Crude Oil 1.7 10.5 51.3 1.9 11.6 56.9 0.1 0.8 3.8 0.3 1.9 9.4
Kapuni Condensate 10.5 66.1 360.5 10.6 66.7 363.4 0.0 0.0 0.0 0.1 0.5 2.9
Radnor Crude Oil 0.0 0.3 1.3 0.1 0.4 2.1 0.0 0.2 0.9 0.1 0.4 1.7
Copper Moki Crude Oil 0.1 0.6 3.4 0.1 0.7 4.0 0.0 0.2 1.1 0.0 0.3 1.7
Surrey Crude Oil 0.0 0.2 1.1 0.0 0.2 1.2 0.0 0.0 0.2 0.0 0.1 0.3
Tariki Crude Oil 0.3 1.9 10.8 0.3 1.9 10.8 0.0 0.0 0.0 0.0 0.0 0.0
Kauri/ Crude Oil 0.3 2.1 12.2 0.3 2.1 12.3 0.0 0.0 0.3 0.0 0.1 0.4
Manutahi
Rimu Crude Oil 0.2 1.5 9.0 0.2 1.5 9.5 0.1 0.3 2.1 0.1 0.4 2.5
Moturoa Crude Oil 0.0 0.0 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Total† 89.3 562.0 3192.7 93.5 588.2 3340.2 8.2 51.8 292.9 12.4 78.1 440.4
All Fields# 92.4 581.4 3294.5 93.5 588.2 3340.2 11.4 71.6 405.6 12.4 78.1 440.4
† Arithmetic total.
# T he All Fields 1P values were estimated based on probabilistic summation using a Monte Carlo simulation. Arithmetic
summation of 1P values will return a number with a much lower probability of occurring (0.1n). 2P values may be totalled safely
using arithmetic summation since they are the mid-point of the probability distribution.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
Table D.2: Natural Gas Reserves – as at 1 January 2017 31
Field Ultimate Recoverable Ultimate Recoverable Remaining Remaining
(1P) (2P) Reserve (1P) as at Reserve (2P) as at
1 January 2017 1 January 2017
Mm3 Bcf PJ Mm3 Bcf PJ Mm3 Bcf PJ Mm3 Bcf PJ
Pohokura 33699.2 1190.1 1395.1 35660.3 1259.3 1476.3 16227.7 573.1 671.8 18188.8 642.3 753.0
Mangahewa 8588.3 303.3 334.5 11870.5 419.2 462.4 4136.9 146.1 161.1 7419.1 262.0 289.0
Turangi 5712.5 201.7 233.6 10130.0 357.7 414.3 3827.6 135.2 156.5 8245.0 291.2 337.2
Kupe 8291.4 292.8 335.8 10612.3 374.8 429.8 4935.8 174.3 199.9 7256.8 256.3 293.9
Maui 104045.9 3674.3 4109.8 105509.8 3726.0 4167.6 2741.4 96.8 108.3 4237.6 149.6 167.4
Kowhai 1600.8 56.5 64.4 2152.8 76.0 86.5 681.3 24.1 27.4 1233.3 43.6 49.6
McKee 5340.6 188.6 218.8 6323.2 223.3 259.0 455.9 16.1 18.7 1438.5 50.8 58.9
Kapuni 38718.1 1367.3 1014.4 39644.1 1400.0 1038.7 0.0 0.0 0.0 925.9 32.7 24.3
Ngatoro 1394.1 49.2 42.5 1756.0 62.0 53.6 181.8 6.4 5.5 543.7 19.2 16.6
Radnor 196.2 6.9 6.9 341.3 12.1 11.9 152.9 5.4 5.4 298.0 10.5 10.4
Cheal 123.5 4.4 6.0 156.4 5.5 7.6 15.9 0.6 0.8 48.8 1.7 2.4
Waihapa/ 858.8 30.3 34.0 875.0 30.9 34.7 37.1 1.3 1.5 53.3 1.9 2.1
Ngaere
Copper Moki 34.0 1.2 1.7 35.7 1.3 1.7 3.7 0.1 0.2 5.4 0.2 0.3
Tariki 1453.1 51.3 64.4 1453.1 51.3 64.4 0.0 0.0 0.0 0.0 0.0 0.0
Kauri 789.6 27.9 32.8 813.8 28.7 33.9 53.1 1.9 2.2 77.2 2.7 3.2
Sidewinder 107.6 3.8 4.5 107.6 3.8 4.5 0.0 0.0 0.0 0.0 0.0 0.0
Rimu 140.8 5.0 5.9 143.6 5.1 6.0 14.3 0.5 0.6 17.2 0.6 0.7
Surrey 8.4 0.3 0.3 9.5 0.3 0.4 0.5 0.0 0.0 1.6 0.1 0.1
Total(1) 211620.9 7473.3 7927.0 228163.6 8057.5 8576.9 33689.9 1189.7 1369.2 50265.2 1775.1 2020.4
All Fields(2) 225781.7 7973.4 8264.0 228163.6 8057.5 8576.9 48534.3 1714.0 1776.4 50265.2 1775.1 2020.4
*Includes LPG
† Arithmetic total.
# The All Fields 1P values were estimated based on probabilistic summation using a Monte Carlo simulation. Arithmetic
summation of 1P values will return a number with a much lower probability of occurring (0.1n). 2P values may be
totalled safely using arithmetic summation since they are the mid-point of the probability distribution.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
32 Table D.3: LPG Reserves – as at 1 January 2017
Field Ultimate Recoverable Ultimate Recoverable Remaining Remaining
(1P) (2P) Reserve (1P) as at Reserve (2P) as at
1 January 2017 1 January 2017
kt PJ kt PJ kt PJ kt PJ
Kupe 1394.0 69.6 1783.2 89.0 837.3 41.8 1226.5 61.2
Maui 3267.2 150.5 3316.0 152.8 83.0 3.8 131.8 6.1
McKee/Mangahewa 42.9 2.1 77.2 3.8 23.4 1.1 57.7 2.8
Kauri 20.7 1.0 20.7 1.0 0.0 0.0 0.0 0.0
Rimu 10.4 0.5 10.4 0.5 0.0 0.0 0.0 0.0
Total† 4704.1 222.2 5176.4 245.6 943.7 46.8 1416.0 70.1
All Fields# 4776.7 226.3 5176.4 245.6 1073.2 50.8 1416.0 70.1
† Arithmetic total.
#T he All Fields 1P values were estimated based on probabilistic summation using a Monte Carlo simulation. Arithmetic
summation of 1P values will return a number with a much lower probability of occurring (0.1n). 2P values may be
totalled safely using arithmetic summation since they are the mid-point of the probability distribution.MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017 Figure D.11: Taranaki oil and gas fields 33
MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT ENERGY NEW ZEALAND: 2017
34 At current levels of gas All reserves figures are Energy Agency (IEA), global
use, remaining natural estimates generated through investment in the energy
gas reserves would be models of the physical sector fell 12 percent in 2016.8
dimensions and chemical New conventional oil projects
exhausted in 11 years
composition of the various were at a 70 year low, with
A total of 196 PJ of gas was fields. These models gradually oil discoveries declining to
used across energy change over time as more 2.4 billion barrels in 2016,
transformation, non-energy information becomes available compared to an average of
use, and consumption in the about the size, shape, and 9 billion barrels per year over
2016 year. If gas used was held composition of the fields. the past 15 years.9
at this amount each year
remaining recoverable New Zealand exploration
New Zealand oil and gas has experienced a similar
reserves of natural gas would
be exhausted in 11 years.
exploration expenditure downturn in recent years with
However, it is important to falls 62% alongside low a single exploration well drilled
consider that the gas market crude oil prices in 2016, down from 3 in 2015
has many levers that allow Between 2008 and 2014 US and 22 in 2014 and. Total
significant extension of this shale oil production grew expenditure on wells
period. There are always dramatically. Combined with amounted to $95m in 2016,
additional resources being continued strong production down from $253m (down 62%)
identified. Remaining reserves from the OPEC countries, this in 2015, and $1,124m in 2014.
of gas are constantly being led to a global oversupply of Figure D.12 shows how the
redefined based on knowledge crude oil, which forced prices total number of wells drilled
of actual field dimensions and down from around $120/barrel annually 10 has changed since
composition. Economic factors to $50/barrel.7 2005 as the Dubai crude oil
also come into play as reserves price has changed. Significant
of commodities that were once The lower price of crude reductions in the price since
uneconomical to extract reduced the appetite for 2014 have coincided with
become more appealing as further investment which a large falling off in well
demand increases, supply saw significant reductions drilling activity.
declines, and price makes in exploration investment.
According to the International Exploration permits have
extraction feasible. also declined significantly with
only one exploration permit
granted in 2016, down from
Figure D.12 Wells drilled over time and Dubai crude oil price
nine in 2015. Deferral of drilling
programmes makes economic
50 2011 sense in the current climate
of reduced oil prices.11 Oil
2007
2010
prices are cyclical and most
companies believe there
40
2009 will be a return to higher
2005 2008 prices as global supplies fall.
2012
2014 Further data are also available
Wells drilled
30 2013
2006
on 3P reserves, LPG reserves,
contingent resources, oil and
gas initially in place, system
20
deliverability, and activity data
at: http://www.med.govt.nz/
sectors-industries/energy/
energy-modelling/
2015
10 publications/energy-in-new-
zealand-2015.
2016
0
40 60 80 100
Dubai crude oil price
7 https://www.iea.org/newsroom/news/2017/july/commentary-witnessing-the-ongoing-transformation-of-the-oil-and-gas-
industry.html
8 https://www.cnbc.com/2017/07/10/watchdog-warns-of-oil-and-electricity-shortages-as-investment-falls.html
9 https://www.iea.org/newsroom/news/2017/april/global-oil-discoveries-and-new-projects-fell-to-historic-lows-in-2016.html
10 This includes exploration, appraisal and development wells.
11 http://www.radionz.co.nz/news/regional/296521/low-oil-price-hits-exploration-sectorYou can also read
