Oil Security: New Zealand's IEA Obligations
The International Energy Agency (IEA) is an intergovernmental body committed to advancing security of energy supply, economic growth and environmental sustainability through energy policy co-operation.
As a member of the IEA, New Zealand is required to hold at least 90 days of oil reserves (measured as net oil imports). New Zealand's stock levels have recently been in breach of this obligation due primarily to declining domestic oil production.
In March 2005, Cabinet agreed that the Government should tender for oil stocks to maintain New Zealand's membership of the IEA and meet the 90 days reserve obligation.
The Government decided that it will meet its IEA obligations by tendering for contracts which provide the option to purchase stock in an emergency at market prices (called tickets). A global tender for the additional stocks was released in late 2006 and tickets were secured for 406,000 tonnes of petrol and diesel for 2007 and 170,000 tonnes for 2008. In 2007 New Zealand released another global tender for an additional 100,000 tonnes of oil and petroleum to complement the 170,000 tonnes already secured to ensure that New Zealand meets its emergency reserve obligation in 2008.
The 2008 tickets cover stock in held in Australia, Japan and the Netherlands. No tenders were received for stock in New Zealand. The cost of these stocks is met by the Government.
The Government has entered into bilateral arrangements with the Governments of Australia and the UK, and has concluded formal treaties with the Netherlands and Japan to enable the stocks to count towards New Zealand's IEA obligations.
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Cabinet Papers
Available Cabinet Papers for Oil Security in New Zealand
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Regulatory Impact Statements
Available Regulatory Impact Statements for Oil Security in New Zealand
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Media Statements
Media statements relating to Oil Security.
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Archive
Documents produced as part of the oil security policy process that have been superseded or are no longer immediately relevant.
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