16 | T T Richard Loader New unit keeps services provider pumping “New Zealanders need access to reliable, affordable homegrown energy and we need investment in natural gas production to achieve this.” REGIONAL DEVELOPMENT Energy Resources Aotearoa T T Richard Loader Gas production needed to meet energy gap “We have recently purchased a high-capacity coiled tubing unit, which has the ability to drill into new feed zones to get new energy generation from our clients’ existing asset, when clients can’t get any more energy out of their existing well.” While New Zealand is growing as a world leader in renewable electricity generation, Energy Resources Aotearoa CEO John Carnegie urges that intermittency and variability in our weather-based system needs to be backed by fossil fuels to keep our electricity system functioning and prices down. “Currently, around 311,000 New Zealand households, small businesses, and many of our major industrial exporters rely on gas. Our electricity system also relies on gas. Transitioning or electrifying is not the simple, affordable switch some might have you believe, and gas is a critical fuel to have in our energy system. “Our challenge is simple: New Zealanders need access to reliable, affordable homegrown energy and we need investment in natural gas production to achieve this.” Acknowledging that while renewable alternatives will help power our transition to a lower carbon economy, John says before we get there gas remains necessary to meet the significant energy gap when hydro lakes are low and the wind isn’t blowing. But gas production has been declining, in part because of the policies of the previous government that were designed to suppress the role of gas in the economy. “Commercial arrangements that increase the availability of fuel and electricity by turning down demand, like Methanex, New Zealand’s largest gas user, and the Tiwai Point aluminium smelter, enable the system to cope with these circumstances but are detrimental to New Zealand’s reputation as a stable place to do business. “They reveal the full extent of the energy shortages we face. Relying on the weather or trying to subsidise renewables into existence isn’t a great way to run an economy, let alone an energy system. “New Zealand simply has not developed the range of fuels needed to adequately and securely run the country’s energy system, and while households don’t yet feel this pain, communities in the central North Island bear the brunt of energy prices that impact on their ability to compete internationally, with livelihoods lost.” The picture of our energy system lurching from crisis to increased dependence on coal is an environmental own-goal and an entirely predictable result of the former government’s shock oil and gas exploration ban in 2018, John says. “Having caused this problem, only the Crown can solve it now. The ban has certainly caused severe damage to investment confidence, and New Zealand’s energy shortage. There’s a rapid need to rebuild our reserves, and we need legislative changes that reflect Western Energy Services The flexibility to develop, adapt and move quickly with technology, whilst remaining humble and focused for its clients, have been key cornerstones for world-leading geothermal well services provider, Western Energy Services (WES). WES delivers unparalleled expertise in wireline diagnostics, well interventions, testing, reservoir engineering and monitoring services. The company was founded in Taranaki in 2005, but with a strong pipeline of geothermal projects and three of the major energy generator brands in the central North Island it wasn’t long before the company moved to Taupō, servicing all of the geothermal providers from Kawerau all the way to Northland, and beyond. From its early beginnings providing a wireline service with a truck, a hydraulically driven cable and some tools to run surveying tests on the wells, WES has evolved into multiple wireline and coiled tubing units, enabling the team to convey and drive cleaning tools down inside the well-casing under live conditions to bring the scale to surface and gather critical data. “We have recently purchased a high-capacity coiled tubing unit, which has the ability to drill into new feed zones to get new energy generation from our clients’ existing asset, when clients can’t get any more energy out of their existing well,” says GM Marcus Prestney. “This is a significant development and investment for Western and the energy sector. We also provide production testing for newly drilled wells. “The client will want to know the measure of output from that well. this so we can quickly and effectively bring back security and affordability to our energy system. The current government has listened to the sector and understands the vital need for oil and gas in our energy mix. Recent policy announcements, like the reversal of the oil and gas exploration ban, are great news for New Zealand, particularly the Taranaki region. More secure natural gas is a triple win for New Zealand: for the environment by reducing the need to burn imported coal and unlocking greater uptake of renewables; for Kiwis trying to keep their energy costs affordable during a cost-of-living crisis; and for supporting our economic aspirations as a growing exporter.” Proposed changes like the amendments to the Crown Minerals Act and the Fast-Track Approvals Bill provide a positive pathway to ensuring all Kiwis have access to reliable, affordable home-grown energy that they need. The Fast-track Approvals Bill will unlock the potential of New Zealand’s natural resources and energy sector by providing greater predictability and building the confidence to invest in long-term projects currently bogged down in our inefficient and difficult-to-navigate resource management system. Many of these are renewable energy projects. “We’re heartened by the reference to an Energy and Electricity Security Bill, and we hope this Bill forms the basis for cross-party consensus to emerge. “Energy doesn’t need to be a partisan issue, and we hope political parties can put their tribal politics aside, and work to agree on an approach that keeps our factories humming, the lights on and homes warm and dry. Political parties can work together to agree on a framework that secures the energy future for all New Zealanders, regardless of which way the political wind blows. “Developing a framework that drives informed choices is critical to building the energy future New Zealand needs to thrive, while still ensuring political parties remain focused on balancing the energy trilemma of affordability, reliability, and sustainability.” Founded over 50 years ago, Energy Resources Aotearoa (formerly PEPANZ) is New Zealand’s peak energy industry body, representing participants from right across the energy system, providing a strategic sector perspective on energy issues and their adjacent portfolios. “Our expertise is to run an LECM, which is an above-ground containerised process that allows us to monitor the pressures, temperatures and outputs of the well for the very first time, so that the client has a base line to start their well from.” Geothermal Reservoir Engineering is another of the services routinely undertaken by WES to obtain a comprehensive understanding of the deep underground systems, their steam paths and the layers of the earth that the steam path has to navigate its way through to get to the surface. In 2021, WES became a wholly owned subsidiary of Contact Energy. “Western Energy’s vision was and continues to be the world’s leading geothermal services provider, servicing multiple companies domestically and internationally, acquiring new assets and adopting new technology to meet our clients’ needs.” Marcus also recognises the major contribution made by the company’s 40 team members, who come from a very diverse mix of ethnicities and cultures. IF YOU NEED IT LIFTED, SHIFTED OR TRANSPORTED SAFELY OPERATING A DELIVERY SERVICE, TRANSPORTATION AND CRANE HIRE TO THE LAKE TAUPO DISTRICT OUR SERVICES SHIPPING CONTAINERS STRUCTURAL STEEL BUILDING SUPPLIES WWW.HAWKESCRANEHIRE.CO.NZ CALL 027 479 0523
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