How others see us - New Zealand encouraged by oil potential

New Zealand is famous for its white liquid exports. Its dairy industry generated NZ$13.9bn in revenues in the year to March 2012. But now the government is pinning its hopes on the potential of a black liquid: oil.

Crude oil already brings in substantial revenues. It was the country's fourth largest export earner in 2011 and the oil and gas sector supports more than 7,000 jobs directly and indirectly. New Zealand is also self-sufficient in gas, thanks to the 1969 discovery of the Maui field off Taranaki, a western province in the North Island. However, in terms of oil and gas exploration it is frontier country.

Including -

Call for improvement in fracking practices

New Zealand is not nicknamed the Shaky Isles for nothing. In 2011 the country recorded more than 18,000 earthquakes - including the devastating one which hit Christchurch on the South Island in February

Its propensity for earthquakes is one of the elements under discussion in relation to hydraulic fracturing or fracking - which involves pumping gallons of water, sand and chemicals deep underground in order to release trapped gas.

A report stated that if best practice was not followed, fracking could trigger earthquakes or pollute aquifers. As New Zealand was a seismically active part of the world, companies were discouraged from drilling wells near active fault lines ... READ MORE

Released by the Financial Times - 6 January 2013