Oil Emergency Response Strategy
The Ministry of Economic Development has developed an Oil Emergency Response Strategy in consultation with other agencies and stakeholders to help make sure New Zealand is ready to respond to any future disruptions in oil supplies. The strategy aims to minimise the effects of such a disruption on New Zealand, and ensure that New Zealand is able to meet its obligations as a member of the International Energy Agency (IEA).
The Oil Emergency Response Strategy takes into account the key concerns raised by submitters on the discussion paper entitled Options for Government Response to an Oil Supply Disruption, which was released in September 2006. The Strategy provides a high level overview of a range of measures designed to respond to varying types and degrees of oil supply disruptions.
The response measures outlined in the Strategy can be broadly divided into two groups; measures to increase supply and measures to restrain demand. The measures to increase supply include; a drawdown of stocks, relaxation of petroleum specifications and surging production. Measures to restrain demand include; an information campaign targeting voluntary savings, fuel switching, speed limit reduction, quantity rationing and allocation rationing. Car-less days are not favoured, partly because of limited success with their implementation in the past.
These response measures will be developed in more detail as part of an ongoing work programme including the drafting of regulations where necessary. This work is expected to be completed in 2009 and will involve further discussions with stakeholders.
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