The recent Petroleum and Minerals Sector Report has been labelled by MP for Northland, Mike Sabin, as another reminder of the sector’s importance to the Northland economy.
The report shows the petroleum and minerals sector generates $333 per hour worked, and also notes that in the last six years there has been a dramatic lift in petroleum exploration and development, totalling $8.3 billion, with $1.9 billion in levies and royalties being paid to the Crown.
“Investment in mineral prospecting and exploration is at an historical high, and I am determined to ensure that Northland is able to reap the rewards of this industry,” Mr Sabin said.
The industry is set to spend up to $755 million in 2014 on both onshore and offshore sites following Block Offer 2013, where areas in the Northland and Reinga Basins off the west coast of Northland were opened up for oil and gas exploration tenders.
Five permits for onshore minerals exploration were also granted.
Petroleum in particular has had a transformative effect on the Taranaki regional economy, says Mr Sabin, where employment in the sector has doubled over the past 10 years, and exports have tripled.
“Northland has an impressive mineral profile and very good prospects, with resources both on and offshore, and if we can follow in the footsteps of Taranaki the future is a very positive one,” Mr Sabin said.
The report is the third in a series of seven that provide detailed information about different sectors of the New Zealand economy.