"For the longer term, this decision may raise doubts among investors as to the viability of investing in New Zealand business. If a multi-billion dollar energy industry can be banned, what other industries might face the same fate?
"Confidence among both overseas and domestic investors may be the longer term casualty of today's decision."
Earlier today, Prime Minister Jacinda Ardern announced a ban on future offshore oil and gas exploration in New Zealand, with the only exploration likely to be contemplated being that of on-shore exploration, limited to energy-rich Taranaki.
"We're protecting industry and protecting future generations from climate change," Ardern said.
"This is a responsible step, which provides certainty for businesses and communities that rely on fossil fuels."
Hope said he was concerned that the ban imposed by the Government came without consultation within the industry.
The Government's decision to continue to recognise existing permits was important, as doing otherwise would have had a potentially devastating effect on investment into New Zealand, he said.
"It will be important to see what Government commitment is being made to affected businesses, and how quickly other high value businesses can be developed to fill the void."
Energy Minister Megan Woods said more than 30 existing permits, 22 for offshore oil and gas exploration, will be unaffected by today's announcement.