Changing the zoning of harbourside land would "kill"
Dunedin's chances of becoming the base for an offshore oil
industry.
James Henry.Photo by Craig Baxter.
That view was put to the public forum of the Dunedin City
Council yesterday by Dunedin business consultant Dr James
Henry, who has been involved with the oil industry since the
1970s.
Dr Henry described the harbourside industrial area as "unique
in the world" because of its "cluster" of engineering
industries close to a harbour.
The council's proposed plan change 7: harbourside would allow
industrial harbourside land to be used for residential and
commercial purposes.
Asked by Cr Fliss Butcher what impact the plan change would
have on Dunedin's prospects of becoming a base for offshore
oil production, Dr Henry said: "It will kill it. It won't
happen."
Asked by Cr Michael Guest what he would say to Dunedin
residents who did not want a base in the city, Dr Henry used
the examples of Scottish cities Dundee, which had declined
after not becoming involved with the North Sea oil industry,
and Aberdeen, which had grown after becoming an oil base.
Dr Henry said a base to service an oilfield in commercial
production would require 400,000sq m of industrial land.
He considered there was sufficient space within Dunedin's
harbourside.
During the past two months, the Institute of Geological and
Nuclear Sciences vessel Reflect Resolution had carried out
seismic testing of the Eastern Great South Basin, beginning
100km east of Dunedin and extending towards the Bounty
Islands.
It had since moved to another area off the Nuggets to work
for Greymouth Petroleum.
Another company, Australia World Wide Exploration, had a rig
drilling around the North Island and Dr Henry said there was
the possibility it could be brought south to drill 30km-40km
off the Moeraki coast early next year.
Origin Energy Australia had also been carrying out seismic
testing south of Timaru.
Dr Henry said Dunedin was central to all the activity - aside
from that further south in the Great South Basin - and noted
both the ports of Bluff and Timaru were working on proposals
to become the shore base for future exploration.
During the exploration drilling phase, a shore base would
require space for storing drilling equipment, an airport from
which to operate helicopters, and fuelling facilities for
supply vessels.
Ultimately, if an oilfield was brought into production,
3000-5000 jobs would be created onshore, with a requirement
for office space, storage space, catering, construction and
wharf space that could operate "24/7".
Dr Henry considered such a base would not add to the noise
made by existing industries in the harbourside area.
One of the big issues for bases in other countries was
traffic.
Oil would not be brought to a shore base but would be loaded
directly from rigs to ships for transport to refineries.
The Otago Chamber of Commerce and industries in the
harbourside area are campaigning against the council's plan
change.
They said Dunedin's role in offshore oil exploration could be
threatened by introducing apartments, cafes and restaurants
to the area.
Economic development committee chairman John Bezett told the
Otago Daily Times yesterday the council was well aware of
potential benefits to Dunedin from offshore oil and gas
exploration and the council would provide the services
required.
"It just makes sense. We wouldn't turn that sort of thing
away."
He shared the concerns of industrial workers in the
harbourside area over the possibility of job losses from the
plan change, but believed the council should "hold to its
course" and follow through with the Environment Court process
it was engaged in.
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