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2 Approach

2.1 Case Studies

The Centre for Advanced Engineering’s previous work on Oceans Policy (2003) has identified a substantial number of areas with potential for commercial development. These are in addition to sectors that already contribute economic activity and have varying degrees of growth potential. The scope of the present project is limited to three case studies and one existing sector as a basis for comparison. The Maui gas and oil field (‘Maui’ for short) provides the established case; three further cases are concerned with energy resources that lie on a spectrum from active, through advanced pre-commercial, to long-term commercial but research-dependent.

2.2 Consultation

Consultation with industry was undertaken in three phases:

a. phase 1 consisted of wide-ranging unstructured interviews with five general sector representatives who have policy, regulation, scientific and commercial roles in the maritime space

b. phase 2 consisted of in-depth structured interviews with a minimum of three respondents for each specific resource opportunity (9 respondents total)

c. phase 3 consisted of a 2-day Workshop, involving MFE, the Ministry of Economic Development (MED), the CAE project team and the earlier respondents, to review and validate the issues raised in the consultation process.

Table 1: Case Studies

Case study Resource oppportunity Relevance

Success Story

The Discovery, Development and Production of the Maui Gas and Oil Field

When enabling technology became available, a governance framework already existed for a major discovery to be made. However, considerable intervention was necessary for its development.

Current Opportunity

Oil and Gas Exploration

Considerable private sector investment in response to perceived opportunities, are governance arrangements optimal to give best chance of restoring inventory and sustaining supply?

Emergent / Undeveloped Opportunity

Wave & Tidal Energy

Emerging technology being tested but as yet no viable business case identified; governance and/or economic interventions may catalyse development.

Future Opportunity

Methane Hydrates

Very large resource opportunity awaits technology development in first instance; governance deserves detailed consideration.

2.3 Analytical Framework

Each of the new three case studies were examined in terms of the impact of a range of critical ingredients (eg, infrastructure, investment, technology, policy) that would support the evolution of a particular sector: from an ‘embryonic’ or emergent stage towards ‘critical mass’, at which point they would be expected to sustain material contributions to the national economy.

For each case study, we attempted to identify and benchmark the gaps that exist between ‘embryonic’ or ‘pre-embryonic’ stages of a sector’s development and the attainment of ‘critical mass’, against an established case: the successful discovery, development and production of the Maui gas and oil field.

This analysis was intended to assist in the identification of optimal government interventions to address the gaps, so as to support the development of the resource opportunity and stimulate a growth sector that can ultimately enable the sector to achieve critical mass and contribute to the growth of the national economy on a sustained basis.

2.4 Case Study Structure

Each case study is intended to illustrate the following issues:

  • current activity in New Zealand and internationally, including proposed or actual commercial activity

  • reported barriers and issues impacting on commercial development activities, specifically in terms of ‘know-how’, ‘capital’ and ‘property rights’

  • analysis of the reported barriers and issues

  • recommendations on potential strategies and/or interventions to overcome or mitigate the reported barriers, constraints and issues.

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