Direct, or 'foreign', investment by international companies has transformed the global economy. Developing countries use foreign investment to step-shift their economies and grow their ability to earn - creating wealth and improving living standards. New Zealand is no different, and leverages international oil and gas investment to benefit kiwis.
Spending this capital locally increases economic activity - paying wages and salaries, employing contractors and businesses, and stimulating business activity directly and indirectly.
In order to maintain and improve our kiwi lifestyle, our economy needs to grow, offering more and higher value jobs and incomes to a greater proportion of kiwis. To do that, New Zealand needs to attract significant investment capital to drive new business growth and activity.
It costs millions of dollars to first discover oil and gas fields, and then even further investment to turn that discovery into a producing well or field. This investment pays for the development of all sorts of local support infrastructure, from production stations (onshore oil and gas processing plants) to other buildings, roads, piping and reticulation structures, and the salaries of all the managers, engineers, builders and other support workers needed to complete a project.
This investment also stimulates the growth of other related infrastructure - like roads, ports and airports.
As a small country we have limited home grown investment capacity - foreign investment in our country is vital in reaching our growth targets. The oil and gas industry is one of the few sizable industries that is attractive to foreign investors, primarily because it can offer large returns on investment.
of Taranaki's Gross Domestic Product
in 2017 on Oil and Gas exploration and production
of national expenditure