Overview of issues that determine the oil fight

The age of ‘extreme oil’

….and extreme costs

US Dollars per barrel

Deepwater Horizon Disaster

“The oil industry’s Chernobyl”

The Arctic Battle has begun

Big Oil – crossing the 'line in the ice'

A unique world – on the front line

Big Oil profiting from climate change

Arctic oil or bust for Big Oil

Shining the spot-light on Shell’s Arctic drilling plans

Success in first year of the battle• Shell mess up big time in the first year!• Over 3 million people have signed up to protect

the Arctic• Shell plans under review by US Government• Globally agreed oil drilling ban possible within 3

years

•Most well blow-outs occur during exploration drilling

•Deepest Taranaki production well is 120 metres deep

•Deepest new permit area is 3,100 metres deep

•Deepwater Horizon was 1,500 metres deep

Deep Sea Drilling in New Zealand

•Isolated and challenging far-offshore environments

•High pressure and temps of oil reservoirs

•High pressure and low temps of deep sea

•Poor well design

•Casing cement failure

•Unexpected pressure anomalies in the well

•Drill crew misreading pressure anomalies

•Poor management of drilling mud pressure

•Inadequate diversion of a ‘kick’ on the drilling rig

•Undetected shallow gas pockets

•Failure of the Blow Out Preventer at the seafloor

•Inadequate well integrity diagnostics

Technical issues

Need more than one rig to stop a blow-out

Relief well drilling operation

Fundamental issues for New Zealand• Isolation of deep sea rigs from main petroleum infrastructure

• No well capping solutions other than relief well drilling

Economic Impact

•Deepwater Horizon costs - 37 billion US$ and climbing

•No International Oil Rig Spill Liability Treaty

•Impact on New Zealand fishing industry

•Impact on New Zealand tourism industry

•Impact on ‘Clean and Green’ international reputation

Need an Energy Revolution!

• “By 2050, around 95% of global electricity will be produced from renewable sources”

• “By 2050, 80% of global primary energy demand will be covered by renewable energy sources.”

2011 global renewable electricity investment higher than fossil fuels

Projected to reach 1.7 trillion US$ by 2017

PWC Clean Economy Report estimate NZ can capture 7.5 - 22 billion NZ$ of global market by 2025

New Zealand’s Economic Direction?

It’s time to back the winners

…however

Oil & coal companies buy politicians…

… and politicians pay oil & coal companies

So our ultimate aim – fossil fuel extinction!