The value of fracking

Stuff reports:

New Zealand’s multibillion-dollar energy industry will become uneconomic if fracking is banned from drilling operations, an industry report says.

Banning the controversial practice could potentially endanger the future of the lucrative sector, says the report, prepared by New Zealand-owned Todd Energy. …

Todd’s conclusions highlight the importance of the industry to New Zealand’s energy supply and coffers and raises the possibility of major oil and gas players walking away from uneconomic prospects.

The result of a three-month research project, the Todd report has been written as its submission to the PCE inquiry. Close to 180 pages long, it is the most comprehensive industry report into fracking published in New Zealand.

It says opposition to fracking in New Zealand is being based not on evidence, but on misinformation and emotion.

The 2010 movie Gasland, which received significant public attention, has also been comprehensively discredited, the report says.

It’s ironic that the Greens are so against fracking, as in the US it has helped reduce greenhouse gas emissions.

THE GOOD OIL

Contributes $2.2 billion to GDP every year

Provides more than 6000 jobs for Kiwis

Each worker produces about $525,000 in labour productivity, which is five times the national average

Estimates show the Government received $1b from the oil and gas sector in the 2009-10 year

Decisions should be based on science. My prediction is that regardless of what the PCE finds, the Greens will still insist on a moratorium (euphemism for a ban).