opinion by Roger Childs
The root cause of New Zealand’s vulnerability is the decommissioning of the Marsden Point Oil Refinery, the country’s only domestic refinery. Had Marsden Point remained operational, New Zealand could have refined crude domestically, including alternative sources outside the Gulf, maintaining supply even in the face of global disruptions. Domestic refining would have also allowed NZ to blend and store strategic reserves, providing a buffer against international shipping delays and mitigating price spikes. –Peter MacDonald
Between 1962 and 1964 the Marsden Point Oil Refinery was constructed by Bechtel under the direction of the New Zealand Government. The new plant was to supply petrol, diesel, aviation fuel and other products to the country, making it a crucial part of the country’s infrastructure. As Peter MacDonald notes, if we still had it today we would in a much better position to weather the storms of the current oil crisis caused by the March 2026 American and Israeli war against Iran.
Ardern’s personal agenda
Back in 2022 Prime Minister Ardern oversaw the refinery’s closure driven by her obsession with eliminating fossil fuels. On a personal level her decision was selfish and arrogant, and on a national level thoughtless and economically damaging.
Her ideologically driven beliefs about so called ‘climate change’ and global warming now sees the country in big trouble and dependent on refineries in South Korea and Singapore to supply our fuel. But realistically New Zealand is well back in the queue for supplies behind big markets in the region like India, Japan, Australia, and South Korea.
Reality on fossil fuels
About 80% of the world’s energy comes from fossil fuels. Whether we like it or not that is the reality. We need them. New Zealand is a tiny player in the world’s energy use and cannot reduce dependence on these fuels. We shouldn’t even try.
What the present coalition government needs to do is set in motion the recommissioning of the Marsden Point Refinery to lessen our vulnerability to oil shocks.
Pollution from fossil fuels maybe undesirable, but realistically we need the energy source to power our vehicles and economy.
Using the gas pipes
If the pipes are staying, let’s fill them with home-grown, nation-building solutions that cut emissions, create regional jobs and strengthen export competiveness starting with biomethane. Alzbeta Bouskova Houghton Convenor of Gaseous Biofuels, Bioenergy Association
These pipelines are here to stay and we need to use them with locally produced fuel. Like France and Denmark we should make the most of our local resources. We have the requirements, expertise and technology to use our gas pipes for the benefit of the country.
Political options
Labour leader Chris Hipkins last week spoke of the need for economic resilience given the current oil crisis, but it was the Ardern-Hipkins governments which closed Marsden Point, terminated local oil and gas exploration, closed the coal mines and made us dependent on importing oil and coal.
The present Coalition government wants us to become more self-reliant for fuel and has committed to building an LNG import terminal at Port Taranaki, and this is definitely the way to go to reduce our dependence on overseas fuel suppliers.
Ending the war in the Gulf
How is this for a solution?
- The Americans and Israelis agree to stop bombing Iran
- The Iranian promise to keep the Straits of Hormuz Open to all shipping.
Far too simple?
I’m sure that Trump’s advisors know that the United States cannot select the ruler of Iran and that if they put American boots on the ground in the country they will not be welcomed as ‘liberators’ and it will be Vietnam all over again
On a personal level Arderns decisions were selfish and arrogant, and on a national level thoughtless and economically damaging.
And she did this this malice and full knowledge of the damage she was doing !
Every thing she did was wrong . Can NZ ever recover ?
Personally I think Ardern’s Liebour Government put the final nail in the coffin for New Zealand, Wrecked our economy, Incited Racism, Total reckless spending of NZ Taxpayer’s money, 30 odd Billion never went towards the so called Covid pandemic, Forcing Te Reo in schools, Universities, In all Government Departments, and fostering Co-Governance in Government and Local Government. And obviously the decommissioning of The Marsden Point Oil Refinery just to name a few of the misrepresentation of over power that the Liebour, Greenies and The Maori party got up too. Never to be ever let into Governing New Zealand ever again.