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1:31 pm, March 12th, 2026 - 29 comments
Categories: making shit up, nz first, politicans, Shane Jones, spin, uncategorized, you couldn't make this shit up -
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NZ First and Shane Jones in particular have been making a song and dance about how the previous Labour Government was responsible for the closure of the Marsden Point Refinery.
For instance in Parliament this week he said:
I never said that the Labour Government gave its permission; I said that the Labour Government approved of it in the context of an agreement—i.e., they expressed their agreement.
He chose to repeat it in this tweet.
He referred to a Cabinet Paper as the source of his comments.
Here is the paper.
When you read it the paper clearly states that the owners of the refinery had made the decision to close.
For instance the first paragraph states:
This paper sets out my proposed response to Refining NZ’s planned closure of its oil refinery at Marsden Point. Subject to a final decision by Refining NZ, due by 30 September 2021, oil refining operations are expected to cease between March and June 2022, after which 100 per cent of refined fuels will be imported. I propose to progress development of options to ensure domestic fuel stock levels remain adequate, as a means of supporting fuel supply resilience, as New Zealand transitions away from fossil fuels.
Then Minister Megan Woods then canvasses what possible options there are and notes that even though there had been no request for a subsidy a possible response would be to offer a subsidy to keep the refinery open for a limited period of time.
I have considered an option to support Refining NZ to ensure the refinery continues operating for a period of time – perhaps five or 10 years – by limiting its exposure to volatile earnings. The Government could provide a loan or similar underwrite facility to support Refining NZ through the current period of low earnings (expected to persist for two to three years), with reasonable prospect of repayment if or when refining earnings return to adequate levels. 4.I do not believe there is a strong case to support continued refinery operations on fuel security grounds but I acknowledge there are broader considerations. I am therefore open to commencing discussions with Refining NZ on that option, should Cabinet invite me to do so, subject to availability of budget for a negotiating team with the necessary commercial and legal capability (up to $1 million).
The paper’s recommendations included that Cabinet notes “Refining NZ plans to convert its Marsden Point oil refinery to a fuel import terminal and expects to make a final decision by 30 September 2021.”
The only agreement recorded was to “investigate the option of increasing minimum levels of fuel stock held in New Zealand”.
Unless the English language has lost all meaning the paper confirms that the then Government did not decide to close the refinery down. The closure was not approved. All the paper did was to canvas the possibility of a grant to keep the refinery open.
But it does not matter how often this is pointed out. Shane Jones will continue to blame Labour for an oil company deciding to change the way that it imports oil.
If Labour ever does go into coalition with NZ First in the future as a bottom line they should insist that Shane Jones not be offered a ministerial position. His lack of capacity to understand plan English is justification for them doing so.
Yup, Shane is full of shit, as usual. It was a commercial decision entirely made by the company and its shareholders.
https://www.stuff.co.nz/business/125236451/closure-of-marsden-point-oil-refinery-set-to-be-put-to-shareholder-vote
Incog's comment does help paint a fuller position than what the post does.
Wood and Labour's position is a little worrying and sad. They are not ideologically aligned with the nation's independence or resilience.
Happy for us to have to buy bitumen from overseas. Be dependent on long supply chains and the whims of the 'market'.
Not true
I linked to this yesterday: https://www.beehive.govt.nz/release/fuel-markets-become-more-resilient-sustainable-and-competitive
Apparently, later additional supply risks emerged, mainly for aviation fuel. But at the time it appeared a prudent view with regard to resilience and no fundamental change in the nation’s dependence on imports.
I don’t think bitumen is as mission-critical as fuel but Ad may have more to say about that. As far as I can tell from a quick search, the bitumen market at the time of refinery closure was a de facto monopoly by Z.
Yep it's true enough when you aren't just considering fuel.
Bitumen is important if you want to have roads. Not yr "mission critical" sure, but I am commenting beyond your framing.
Oh, in that case you might as well add the CO2 shortage too, to expand your frame.
When discussing Marsden Point, Labour and resilience CO2 is always in the frame.
In parliament, during QT on Wednesday, when Jones (I think) was being fed a patsy question about the closure of Marsden Point, someone from Labour asked what percentage of MP's fuel for refining was imported. The answer – 100%.
I wish whoever it was had followed up with: what percentage of that imported oil came through the Strait of Hormuz? I suspect all of it – 100%.
In other words, we'd be in exactly the same position we're in now with Trump's ill-advised war.
Sorry – can’t find a link.
Yup
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-publications-and-technical-papers/energy-in-new-zealand/energy-in-new-zealand-2024/oil
I can be bothered finding a link to QT.
So in 48 hours we've gone from a Nothing To Worry About government and straight to the Petroleum Demand Restraint Act.
OMG these people are all over the shop.
When we don’t have a daily stand-up at 1 pm then there’s no crisis in NZ. Luxon is flying off to Samoa and Tonga, so it’s all BAU.
There must be a fair chance that Budget 2026 will be delayed until both Treasury and RBNZ have a stable forecast for both government revenue and inflation+interest rates.
Or PM Luxon reads the National room before the global economy starts to choke and calls a snap election. Just to limit the political damage.
Nah, the Coalition was always off by billions and they have a secret weapon to save their budget holes in the form of Brooke van Velden. I’m sure she can find a way to screw over low-paid workers and beneficiaries to squeeze more money out of them; they’re already clawing back welfare payments from ACC backpay.
https://newsroom.co.nz/2026/03/12/acc-change-a-rushed-answer-to-the-wrong-problem/
My bet is the May budget is extreme austerity and far worse than we've seen since Ruthenasia.
And my bet also is that they gut the NLTP.
Yes, Willis has been shrieking about fiscal responsibility more and louder since the Iran war started.
What’s your pick from the NLTP?
https://nzta.govt.nz/planning-and-investment/national-land-transport-programme/2024-27-nltp/nltp-funding/snapshot?state=current
either Jones is a bit thick or he is deliberately twisting facts to drum up votes. The NZ Trump, ironic given that Trump is responsible for the the oil crisis.
Whether we refine oil here or import refined oil, still travels the same route, still faces same risks and choke point. If he is worried about storage of petrol then he should be blaming himself and his COC as to why they did not increase it over past 2 years
This is worth a watch……..and Jones is full of it, much like his boss Winston trying to make a drama demanding another covid inquiry………..
Watched the clip. Marsden point isn’t solely about refining.
Like so many things, we are only getting a sliver of the story. Marsden Point issue is not just about the energy scare. It is another example, like the banks and 1/2 the supermarket duopoly, of Australian corporations milking us.
No prizes for guessing we now have to buy our CO2 from Australia and others.
The initial monologue about "if you drive a car in Auckland or board a plane in Auckland" convieniently glosses over the fact that those roads would have been made with bitumen that was made at Marsden Point.
Lots of "faith in the 'market'", "efficiences", "supply and demand" and other neo-liberal corporate bullshit.
When the scarcity crunch hits, like the electricity market, companies that Rob Buchanan represents coin it thoroughly.
The closure was a condition of Ampol buying the locally owned Z chain.
"But most importantly there’s the chance for Ampol to take advantage of New Zealand becoming an import-only market with the closure of the Marsden Point refinery to sell a whole lot more fuel here.
An Australian government refining support package of up to $A108 million a year will see Ampol able to keep its Lytton refinery in Queensland open until at least 2027, but Ampol’s bid is contingent on Refining NZ making the decision to close New Zealand’s only petrol/diesel plant."
Voice of reason Rod Oram wasn't impressed; "Rod Oram, however, thinks the Z-Ampol deal is a retrograde step for New Zealand’s climate change future.
“I’m angry about this. Ampol is not going to be a leader in transitioning to alternative fuels – there is not a whiff of any serious ambition there.” Oram would like to see the Government stepping in and declaring Z a strategic asset and not for sale.”
https://newsroom.co.nz/2021/10/12/from-z-to-ampol-moving-in-the-wrong-direction/
A reminder that successive governments are not interested in resilience or independence.
Jones is still right. A future Labour government shoudl commit to taking over and re-opening the Marsden Point oil refinery in the national interest.
An oil supply crisis twice in five years should have told us that.
What don't you get? The oil that was refined and would be refined in the future comes from the Middle East. Duh!
Obviously the Middle East is not the only place to buy oil.
And obviously if we refine the oil we can determine the kind of petroleum product that we need.
duh!
You seem to think we can just pour different crude oil into a refinery and collect the run-offs at the outlet taps. Reality is somewhat different.
https://theconversation.com/oil-petrol-gasoline-a-chemical-engineer-explains-how-crude-turns-into-fuel-278198
yup. as I understand it Marsden point could NOT properly refine taranaki oil as it had a different make up from what Marsden could process, taranaki is light sweet and marsden does medium sour
No! There are so many reasons why this is not a smart idea and even Shane Jones admits that we cannot afford it; it was in the Coalition Agreement of NZ First with National, so if you get your way, Labour will find a friend with Winston. It would take many billions of dollars and completion would take at least six years.
https://www.nzherald.co.nz/nz/politics/pm-christopher-luxon-says-govt-is-considering-whether-to-build-a-new-oil-refinery/DUZN5O5S2BA63HU3MX6HX3LMOQ/
https://www.nzherald.co.nz/northern-advocate/news/shane-jones-wants-marsden-point-economic-zone-admits-govt-cant-afford-oil-refinery/TPDAVAIDW5F33J3HUX3GY4JLLA/
https://www.mbie.govt.nz/dmsdocument/30475-fuel-security-study-interim-report-reestablishing-the-marsden-point-refinery-pdf
All these points below have been asked and successfully answered for 60 years, right here:
◼ How to fund and support the significant capital investment required for the rebuild;
◼ How to structure the MPR operation so it is sustainable over the longer term given the volatility of the refining industry;
◼ How to integrate it into New Zealand’s fuel supply chain; and
◼ How to make these changes where the benefits of having a refinery in New Zealand may not fall to those making the investment.
It would be great if we didn't need oil. And because of a host of decisions, we do. How many more supply chain crises do we need to understand that?
And to answer the question: surely we are too small to do this, the quick answer is:
It is so weird that the left can immediately see the national interest in a massive solar battery, when solar accounts for less than 5% of our total energy needs. Whereas oil is the basic commodity that needs far more state control, regulation, and price coercion than we have now.
New Zealand needs to control our own energy destiny: no one else can be trusted to do it. Regrettably until we shift out of oil use, oil is a massive part of our energy destiny.
The history of yesterday solutions to yesteryear problems.
Not a future plan.
Solaring up, Onslow type, Taranaki offshore wind turbines, geothermal next level, electric truck and hydrogen fleets, the industry battery and coastal shipping etc.
Gulf.
Russian supply at some point, dozens of Thaad systems, the Oman pipeline, the Iraq Syria pipeline (join the across Arabia one).
The question is not whether we can do it, but whether we should do it, whether is the smart thing to do. I’d say No to that.
The Left is not synonymous with Labour, and I’m not speaking on behalf of either.
Please don’t conflate energy with electricity.
Solar power generation is still relatively small but it grew by more than 70% in 2025. I’d have thought that would excite anybody.
We need to become more self-sufficient and resilient. But I don’t think we should aim to become completely independent from the rest of the world. We should diversify and be actively friendshoring (https://en.wikipedia.org/wiki/Friendshoring). This was the gist of Mark Carney’s speech too.
(Shane) Jones is still right (wing) is a truism. Shane Jones being the one who is still right is broken clock thinking.
Our reserve supply has increased since the end of the Marsden Point refinery (the site being used for this).
There has been growth in refinery business in the region since we established our refinery (Singapore, South Korea and Japan supply us with refined oil). China supplies Australia – now down just 2 refineries which need a subsidy (they would need 5 or more to match the one we had).
Yes Australia's government has offered to subsidise the remaining 2 refineries. It's a natural response to retain fuel security there.
The oil supply crisis, should have told us that, the faster we get away from the reliance on oil, the better!