England left kicking themselves after agonising defeat against All Blacks

England could theoretically still draw this two-Test series but on a cold night at the bottom of the South Island they were reminded of one of rugby’s oldest truths. If you want to beat New Zealand on Kiwi soil you need to be at your absolute best and an inability to take your opportunities is invariably going to be fatal.

While England were gallant, committed and ceaselessly enthusiastic, they will also look back and know this was a game they allowed to slip away. In a tight contest, three missed kicks from Marcus Smith, one of them from almost bang in front of the posts, permitted New Zealand just enough wriggle room to secure a narrow victory that ensures the Hillary Shield will stay in the southern hemisphere.

Related: Injured Joe Marler ‘could be out of second Test’ as England rue missed chance

It was close enough, though, with England still pressing forward after the hooter had sounded. In the end, two second-half penalties from Damian McKenzie were enough to ensure a successful All Black re-launch under their new head coach, Scott “Razor” Robertson. If his side can keep on winning tight games we will be seeing plenty of “Razor sharp” headlines in the next few months.

England will be kicking themselves. This was so nearly the third Test win they have managed in New Zealand, the last one having materialised 21 years ago. This felt like their big chance. The All Blacks have not lost in Auckland since 1994 and putting them on their backsides will be an even tougher proposition next Saturday than it was here.

Between now and then, they will also need to address one or two obvious deficiencies, with New Zealand’s counter-ruck and breakdown efficiency a cut above. England’s scrum also had an awkward time and, for all his dash and energy, Smith’s goalkicking was not the only aspect of his game that fell short of the lofty standards he aspires to reach. The bench could not supply the extra last-quarter boost that can make all the difference at this level.

So near and yet so far. England have been here before, not least in last October’s World Cup semi-final against South Africa, and the development of this remodelled side still has a way to go. Here, having taken a deliberate collective step forward to challenge the haka before kick-off, the abiding memory will be New Zealand’s superior ability to take their half-chances and the blunt truth that England left too many points out there. Maro Itoje, Ben Earl and George Furbank, all tirelessly committed, were among those who deserved better.

The ‘what might have been’ theme was particularly strong in the opening quarter, with Smith missing his first penalty and a knock-on in the buildup denying England a possible try for Immanuel Feyi-Waboso. Instead, it was the All Blacks who scored the first points, with a cross-kick by McKenzie finding Sevu Reece who rode Tommy Freeman’s tackle to score.

With little respite at the scrums there was plenty of red rose relief, therefore, when Itoje crashed over to reward a period of close-range pressure and Smith’s conversion put his side briefly in front. Joe Marler, though, limped away before the end of the first quarter with a foot injury, leaving the youthful Fin Baxter to trot on for the most challenging of Test debuts.

New Zealand are too savvy a rugby nation not to recognise a good time to strike and, sure enough, all it took was one missed midfield tackle to give a gleeful Ardie Savea the chance to finish in the right corner. England’s blitz defensive system can be highly effective at reducing the opposition’s time and space but it can also be a high-risk strategy.

Despite the visitors’ occasional hairy moments, there was nothing to separate the teams at half-time. A Smith penalty after the hooter, after Scott Barrett had been pinged for not releasing on the floor, dragged his side back level at 10-10 and gave the England coaching staff the chance to sit their players down and emphasise the opportunity still open to them.

The messages had the desired effect. While Smith did waste a glaring penalty opportunity from straight in front of the posts, England were suddenly looking more dangerous with ball in hand. After a couple of forward surges had been rebuffed, the ball was moved left to the unmarked Feyi-Waboso whose try capped another good performance.

The stakes, already high, rose by another couple of notches. The noise in the indoor stadium, with its unique polytunnel-style roof, also increased when McKenzie nailed a well-struck angled penalty to drag the score back to 15-13.

All Black fans are not the loudest in the sport – putting the “din” in Dunedin does not come entirely naturally – but they know an increasingly tense match when they see one.

Even when another, simpler McKenzie penalty put the hosts back in front again it was still anyone’s game. But by now England had changed both half-backs and their hopes were in increasingly callow hands. Despite being handed a possible lifeline when McKenzie was timed out as he tried to soak up a few extra seconds as he lined up a potential match-clinching penalty, it was too little too late. Not for the first time in this marathon season there was to be no fairytale ending.