Govt must stop subsidies to risky deep sea oil

The Government must not subsidise overseas oil giants to explore and drill in our deep waters when the technology to avoid a catastrophic oil spill is entirely unproven, said the Green Party today.

Green Party spokesperson on off shore oil, David Clendon, said the Government was being irresponsible and ignoring the high risk of catastrophe.

“John Key’s Government is laying out the red carpet for Petrobras. They’re giving the industry tax breaks, $20 million in free research, and an operating environment with minimal safety or environmental regulation,” Mr Clendon said.

“Petrobras hasn’t had to pay a bond, or prove that they could stop a catastrophic leak.”

Experts in the United States have recently condemned the resumption of deep sea oil drilling in the Gulf of Mexico, saying: “There are so many opportunities for things to go wrong that major spills are inevitable.”

“John Key has tried to downplay the significance of Petrobras’s permit, saying drilling won’t commence until 2013. But that’s only two years away,” said Mr Clendon.

“What advanced technology is going to be available in the next year or two that will magically reduce the risks of deep sea oil drilling?

The industry has said the technology to contain a blow out at 3,000 metres wouldn’t be available before 2012, let alone tested and proven.

“Does John Key expect us to believe that if Petrobras finds oil in the Raukumara Basin, they won’t want to extract it as quickly as possible?

“New legislation isn’t going to plug a leak. The reality is that we don’t have the capacity to respond to a catastrophic leak or spill.

“Petrobras doesn’t care about New Zealand’s long term prosperity – we can hardly expect them to look out for our interests. The industry hasn’t given us any reason to be confident in their ability to regulate themselves. Petrobras has a long history of blow outs and accidents.

“If there’s a catastrophe off the East Cape, Petrobras can just walk away.

“The Government needs to protect New Zealand’s shores and economy from the risks of deep sea oil drilling. The industry isn’t going to do that for us,” said Mr Clendon.