Where does OUR oil go?

[firefighter]

OK so i'm wondering after watching nightline where the oil that's being drilled off taranaki goes??? And why isn't our petrol cheap like in the middle east- or at least as cheap as the U.S......????WTF? I was unaware it was there until tonight and am wondering what is going on, did I hear something wrong? anyone have any info on this? Also i'm pretty disgusted at the gas theyr'e just burning off!!!! what a waste.

[98tls]

Whilst answering this can someone explain why chops are so expensive.

[Bren]

Whilst answering this can someone explain why chops are so expensive.

or milk for that matter...

From what I have heard (correct me if I am wrong) the oil reserves in NZ do not have the right composition for Petrol...also most of our oil is in the form of Natural Gas...

Another factor seems to be that we pay international prices for products...just because we make it here dont mean we get it cheap...

[firefighter]

or milk for that matter...

From what I have heard (correct me if I am wrong) the oil reserves in NZ do not have the right composition for Petrol...also most of our oil is in the form of Natural Gas...

Another factor seems to be that we pay international prices for products...just because we make it here dont mean we get it cheap...

What do they use the oil for then? And I'm not sure if it's in the form of natural gas as theyr'e burning that off and extracting the oil, problem is there's waaaay more natural gas than they thought and theyr'e just burning it all off, according to nightline its enough to power a small city over a day I think they said.

And ya if they don't refine the oil here surely we would get some sort of deal for the refined oil!

[pete376403]

The new Zealand refinery cannot process the sort of oil that is coming up from Taranaki - so we sell it to someone who can. I'd guess that its getting the same $US130-something a barrel that the stuff we're buying sells for so the country benefits to some degree. Don't know what percentage royalties the govt is getting - 10 -20% maybe.
You're right it's a crime that the gas is being flared off, but there's no way to currently get it to shore.

[98tls]

Theres a KB member by the screename of Festus (rides a TL) that works on a rig hopefullly he will see this thread and post.

[firefighter]

The new Zealand refinery cannot process the sort of oil that is coming up from Taranaki - so we sell it to someone who can. I'd guess that its getting the same $US130-something a barrel that the stuff we're buying sells for so the country benefits to some degree. Don't know what percentage royalties the govt is getting - 10 -20% maybe.
You're right it's a crime that the gas is being flared off, but there's no way to currently get it to shore.

You'd think it would be benificial to New Zealand to use that oil here to bring some relief to the country huh!!! any idea why we can't refine it? What I mean is surely we could modify our refinery to do it........or bulid a new one or something! Imagine how much cheaper things would be if fuel went down to $3.70 a gallon!

[Pussy]

Taranaki oil is VERY high quality. Unfortunately the companies that are recovering it are overseas ones, and they get very good coin for it selling it elsewhere. Some of the condensate that comes out of the ground here is basically petrol... I've heard of people running small engines (lawnmowers etc) on it.
It's all a matter of economics

[scumdog]

Whilst answering this can someone explain why chops are so expensive.

Did you see about the Southland restaurant?

Chops from Aussie
Pork from Denmark
Cheaper than from NZ!!

WTF???

[98tls]

Did you see about the Southland restaurant?

Chops from Aussie
Pork from Denmark
Cheaper than from NZ!!

WTF???

Xactly mate.In India cows are seen as gods and treated accordingly in NZ the best we can do is give one a country and say "do as you like"

[rainman]

What I mean is surely we could modify our refinery to do it........or bulid a new one or something!

Dude. Refineries are faaaaaarking expensive. A large one costs US$4-6 BILLION to build, according to the Cato Institute, at least. Our one up Marsden Point refines the kak (heavy, sour?) oil that relatively few others can, which is a good thing, in relative terms. An upgrade to that cost NZ$1.84bn, in the 80s.

Big coin involved.

[Reckless]

Someone was telling me a day or 2 ago how many millions our oil field in Taranaki earns. Now that I need to recall I can't for the life of me remember the figures but they where very large.
Just googled it. 790 million in 3 months or 45,000 barrels a day. Here http://www.stuff.co.nz/4425451a13.html. It does say we own stuff all of it though 12.5% rest is Aussy and Japan. So basically we are only getting the tax off the resource. Now that was a smart move? To late for me to read it thoroughly but that's the gist of it. And we hear nothing about this from Helen do we?? Also whats our overseas debt now per man woman and child or have we totally paid off "think big" never hear about that either just how good our GDP is!!

[Shadows]

Petrol produced from local oil would be more expensive at the pump regardless of whether we refined it or if somebody else did. We have a very light oil here, which is worth a hell of a lot more per barrel and a lot more useful than the low grade middle eastern sludge our petrol is currently refined from. The stuff used to make petrol really is shit and is used to make petrol because that is all it is good for. It would be foolish to hold on to the locally sourced stuff and waste it in our vehicle fleet when we can get top dollar for it overseas in an unrefined state.
The oil around here is worth so much that if the Southern Basin exploration comes up with the goods they expect it will, with the 5% royalty the government will get from it nobody in this country will need to pay a cent of tax for a very long time.

[Reckless]

That's interesting Shadows thanks for that!

Now let me see: 45,000 barrels per day at $100-00 x 5% Royalty = $225,000 per day x 365 = $82,125,000.00 per year.

Plus the tax take
Plus the 12.5% NZ Oil and Gas make (do we own it or is it a private company?)

mmmmmmmmmm

[scumdog]

with the 5% royalty the government will get from it nobody in this country will need to pay a cent of tax for a very long time.

But most likely probably still will - at least 33% + 12.5%. - sounds just like normal eh??