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New Zealand to Ease Oil Pressure

Posted on: Tuesday, 6 September 2005, 09:00 CDT

New Zealand to ease oil pressure

WELLINGTON, Sept. 6 (Xinhua) -- New Zealand will join international efforts to ease pressure on the world oil market in the wake of Hurricane Katrina, Energy Minister Trevor Mallard said Tuesday.

"Hurricane Katrina has caused material damage to both crude oil production and refining capacity in the affected parts of the United States, leading to higher fuel prices. Although efforts are underway to restore the capacity, it will take some time," said Mallard.

As a result, the International Energy Agency (IEA), of which New Zealand is a member, has called on its member countries to collectively make available to the market 60 million barrels of oil, or an average of two million barrels per day for 30 days, with a review of the required volumes after 15 days.

The IEA has asked its 26 member countries to develop a plan, which sets out actions that each country will take in order to meet its obligations.

Mallard said that New Zealand's plan will include low level action such as voluntary savings and using existing stocks.

"The Government will work through all the available options in conjunction with the oil companies and other key stakeholders," said Mallard.

The surging oil price was currently a hot topic in New Zealand as well, as consumers appealed for a cut of oil tax and the government declined to give a positive reply.

Mallard said there is no actual or expected physical shortage of oil product supplies in New Zealand. Therefore, there is no reason for people to worry about ongoing availability of petrol, diesel and other oil products.

Source: Xinhua News Agency - CEIS

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