WELLINGTON, New Zealand – In a significant policy shift, New Zealand’s government has voted to lift the ban on new offshore oil and gas exploration that was originally imposed in 2018 under former Prime Minister Jacinda Ardern. The decision marks a reversal of the country’s previously strong emphasis on environmental preservation and its "clean, green and sustainable future."

Resources Minister Shane Jones, a vocal critic of the ban, labeled climate change concerns as "largely moral hysteria" and stressed that the new legislation would stimulate investment in petroleum exploration. He argued that the 2018 moratorium had worsened domestic gas shortages by deterring new ventures.

Jones stated, "The ill-fated exploration ban in 2018 has exacerbated shortages in our domestic gas supply by obliterating new investment." He further described the previous ban as "the worst energy (and) natural resource decision" in New Zealand's history and emphasized the need to avoid harming economic productivity by restricting access to fossil fuels.

During parliamentary debate, questions arose about consultation with indigenous Maori communities. Jones, who is Maori, responded, "I interviewed myself. I spoke to no climate group. I spoke to no (Maori) group. I engaged with the people who are investing and who will be the risk takers to salvage and rescue this sector, and I’m extraordinarily proud of myself that I’ve done that." This stance reflects a stark departure from Jones’ position in 2018 when he supported the ban while serving in Ardern’s cabinet.

The bill encountered opposition from all other political parties. Green Party MP Steve Abel criticized the move as "wrong-headed and archaic," noting New Zealand had been internationally praised for its environmental vision. The opposition’s energy spokesperson, Megan Woods, condemned the decision as favoring oil and gas companies at the public’s expense, calling it "one of the most ridiculous things I have heard."

Despite these criticisms, the government passed the legislation with a vote of 68 to 54. The bill’s implementation was delayed multiple times, due in part to a drafting error, but was ultimately approved with a promise that any increase in oil and gas output would not occur for at least another decade.

New Zealand has cultivated a global reputation for its unspoiled landscapes and commitment to sustainability. Ardern, who led the nation from 2017 to 2023, declared a climate emergency and instituted the offshore exploration ban in line with that vision. However, rising energy costs—exceeding 10% in recent years—even as household consumption declined, and warnings from the state-owned grid operator about potential winter blackouts, have prompted this policy reconsideration.

Transpower, the company managing New Zealand’s power grid, recently signaled that renewable energy alternatives such as solar, wind, and battery storage technologies are not progressing rapidly enough to compensate for declining gas supplies. While the government concedes that new exploration efforts will not alleviate shortages immediately, officials view the move as a necessary step to secure the nation’s energy future.

This new direction underscores the tension between economic priorities and environmental commitments as New Zealand navigates its energy challenges in the coming decade.