Shaw said his Green Party had been building up to this moment for years, if not decades.

"Today we have drawn a line in the sand," he said.

He described it as a huge economic opportunity and said there would be no immediate impact on jobs.

"As we move towards a fossil fuel-free future, we will move there together."

Jones said the idea that New Zealand should not prepare for the "inevitable destructiveness" of climate change was "foolhardy."

Addressing the oil and gas industry, Jones said: "This is not a Welsh mining moment. No one is going to lose their jobs."

Jones conceded that he could be "hammered" in the regions but said that it was "a debate worth having".

Ardern was surprised that the oil industry felt blindsided, saying that Labour had clearly signalled its intent and met with representatives.

Few jobs would be affected "tomorrow or even in the next decade", she said, saying that her Government was planning ahead 30 years.

Jones, whose party could face criticism from regional voters, said he backed the Prime Minister "100 per cent".

During a visit to New Plymouth last week, he said the engineers had spoken about "slack developing in the sector" and were already looking for post-fossil fuel opportunities.

Ardern said she spoke to the two mayors in the Taranaki region last night and promised to visit soon. Ministers also spoke to iwi, the local Chamber of Commerce and the tourism sector.

Ardern announced this morning that the only exploration likely to be contemplated by the Government is on-shore exploration limited to energy-rich Taranaki.

The decision has been called "a kick in the guts" by the Taranaki Mayor and "economic vandalism" by the National Party. Many in the energy industry say they were caught completely unawares by the announcement.

"We're protecting industry and protecting future generations from climate change," Ardern said this morning.

"This is a responsible step, which provides certainty for businesses and communities that rely on fossil fuels."

In a bid to calm fears about the major shift in policy, Ardern will travel to Taranaki with Energy and Resources Minister Megan Woods immediately after returning from Europe next week.