New Zealand has reopened its doors to oil and gas exploration projects, ending a seven-year moratorium first introduced in 2018. The government announced it is now accepting applications for exploration permits and plans to fast-track approvals in a bid to boost energy security.

Resource Minister Shane Jones said the 2018 ban severely undermined confidence in the energy sector and created gaps in the country’s fuel supply. “We need to get the industry moving again to restore balance and catch up on lost time,” he explained.

The restrictions, introduced under former Prime Minister Jacinda Ardern’s government, were aimed at supporting climate goals. However, the decline in domestic gas production since then has been steep—falling 12.5% in 2023 and another 27.8% in the first quarter of last year alone. This has led to nationwide shortages, forcing manufacturers to cut back and pushing power companies toward coal and diesel generation.

Energy Minister Simeon Brown noted that rising electricity prices, tied to gas shortages, have placed heavy strain on businesses, with some reducing output or closing entirely.

Although New Zealand already relies heavily on hydropower, droughts have made gas an essential backup to maintain grid stability. Officials now argue that reviving exploration is crucial to prevent further disruptions and protect the economy.