While putting together the various chapters of The Road Gang, published in March 2025, I very nearly omitted what became Chapter Eight –– Oil Exploration –– in favour of what I then considered to be topics more relevant to the Road Gang story.

However, I soon appreciated the importance of the extensive history of oil exploration and refining in New Zealand that began as early as 1865 and of how that industry eventually contributed to the quick acceptance of the motor vehicle as the country’s prime means of transport.

Oil exploration continued up and down the country for many years with varying degrees of success and New Zealand’s first refinery was opened for business at New Plymouth in August 1913. By 1949, the refinery had all the oil it could refine and store but distribution of the refined product remained a major problem compounded by competition with the major overseas oil companies and post-war regulations.   

In May 1964 the New Zealand Refining Company, the majority shareholders of which were BP, Caltex, Mobil, Shell, and Europa, began production of refined petroleum products at its Marsden Point refinery. This effectively replaced crude oil pumped from New Zealand wells with that shipped from the Persian Gulf and elsewhere.

But, by April 2022, the Marsden Point refinery had also closed “…in keeping with the wishes of its fuel-company shareholders which argued it would be more cost-effective for them to switch to importing pre-refined fuels, such as petrol and diesel.”

“Critics of the closure expressed concern it could reduce New Zealand’s fuel security but that risk was played down by the former government [Labour] which argued the country was already reliant on crude oil imports.”

“A Cabinet paper revealed that former energy minister Megan Woods had floated the idea of saving the refinery by underwriting its operations for a period of up to 10 years but that the option did not get the support of her fellow ministers.” [The Post 28 November 2023]

And then there came the closure of the Strait of Hormuz…