New Zealand Reopens Oil Exploration, Launches AI Strategy to Drive Economic Growth
**Wellington, July 31 ** – New Zealand is reopening oil and gas exploration after the passing of the **Crown Minerals Amendment Bill**, Resources Minister Shane Jones announced on Thursday. This move reverses a **2018 ban** on exploration beyond onshore Taranaki in the North Island. The new law also updates clean-up rules to meet global standards.
The bill introduces a new type of permit for **small-scale, non-commercial gold mining**, as the government aims to attract more investment into state-owned mineral resources.
Minister Jones said New Zealand needs a **practical energy strategy**, and natural gas will play a key role in the country’s energy future. He explained that the ban discouraged investment, caused gas shortages, and affected energy security and the economy.
A key part of the bill ensures former permit holders can be held **financially responsible for clean-up** if current operators can’t pay—helping protect public money while still attracting investors. Most changes will take effect right away, with full rollout by **September 2025**.
To support new gas development, the government has allocated **NZ\$200 million (US\$118.6 million)** over four years in its latest budget.
However, the opposition **Green Party** criticized the move, warning it could worsen climate change and the cost of living. Dr. Jen Purdie from the University of Otago called for more investment in **renewable energy** and efforts to phase out fossil fuels in line with global climate goals.
Meanwhile, on **July 8**, New Zealand launched its first **national Artificial Intelligence (AI) Strategy** to improve productivity and drive economic growth. **Science and Innovation Minister Shane Reti** said AI could add up to **NZ\$76 billion (US\$45.76 billion)** to the economy by 2038.
But the country currently lags behind in **AI adoption**, with many businesses slow to adopt the technology. The strategy aims to remove regulatory hurdles and promote responsible innovation. It also introduces **Responsible AI Guidance** to help businesses use AI safely.
The government will use existing laws to manage AI-related risks and continue working with global partners for ethical and effective AI development.
