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North Sea Energy 2025-03-06
06 March 2025
Lead MP
The Minister for Industry Sarah Jones
Debate Type
Ministerial Statement
Tags
EmploymentClimate
Other Contributors: 26
At a Glance
The Minister for Industry Sarah Jones raised concerns about north sea energy 2025-03-06 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Yesterday, we launched a consultation on our plans to strengthen north-east Scotland’s status as the energy capital of the UK and demonstrate global leadership in transitioning to clean energy. Over the past decade, oil and gas production has declined by 72%, leading to a loss of around one-third of its direct workforce. We are consulting on not issuing new licences for oil and gas exploration while ensuring existing fields continue operation throughout their lifespan. The Treasury is setting out plans for managing future spikes in oil and gas prices post-2030, providing fiscal certainty for the sector. Additionally, we have established Great British Energy in Aberdeen to drive clean energy projects, improved offshore wind auctions with a new industry bonus, overseen record-breaking renewables auctions, kick-started carbon capture and hydrogen industries, and awarded £55 million for port upgrades. Our clean power action plan aims to drive £40 billion annually of investment towards our goal of transitioning fully to clean power by 2030, creating tens of thousands of new jobs.
Andrew Bowie
Con
West Aberdeenshire and Kincardine
Question
Have you personally met any oil and gas workers since taking office to understand what your Government’s policy means for them and their families? Will the industry receive an answer on the uncertainty surrounding the calculation of scope 3 emissions and environmental impact assessments? Given £200 million support announced for Grangemouth, how much might be needed to support 200,000 oil and gas workers currently employed?
Minister reply
The shadow minister quoted trade union representatives without meeting them or supporting them in government. The GMB general secretary criticised the Tory ideology that left the UK vulnerable by exporting jobs, closing gas storage, and failing to invest in new nuclear and skills.
Bill Esterson MP
Lab
Sefton Central
Question
The Minister mentioned the skills passport system but how does she address pay disparities between oil and gas jobs and renewable sector jobs?
Minister reply
We are working with unions to ensure good salaries for workers in offshore wind companies, breaking down barriers to transition between different industries.
Claire Young MP
Lib Dem
Thornbury and Yate
Question
What details can the Minister give us about the support that the Government will provide to upskill and redeploy workers formerly working in fossil fuel industries?
Minister reply
We are introducing a passporting scheme to help transfer skills from oil and gas to renewable energy. We also have plans for insulation schemes and financial support for vulnerable residents.
Chi Onwurah MP
Lab
Newcastle upon Tyne Central
Question
Can the Minister confirm that she will work with the Mayor of the North East to ensure that the north-east benefits from jobs and opportunities in the North sea?
Minister reply
We are committed to ensuring investment in clean energy supports all communities, including those in the north-east. We will continue to engage industry representatives like Kim McGuiness.
Edward Leigh MP
Con
Gainsborough
Question
Why is there overdevelopment of solar farms in agricultural areas despite green energy initiatives?
Minister reply
We are addressing concerns about solar farm development through the solar taskforce to ensure that communities benefit from infrastructure projects and that developments do not overly impact agriculture.
Question
What is the legal basis of the Government's approach to renewable energy, given the risks of an £800 million charge due to ETS variations?
Minister reply
The Department is having conversations about how to progress with EU partnerships while being cautious to avoid unintended consequences. We are aware of the complexities and will continue working carefully.
Question
How does the Minister justify prioritising net zero when there is a national security crisis demanding higher defence expenditure, and rising costs from net zero policies are harming industries?
Minister reply
We need to push for cheaper renewable energy due to the hike in global market oil and gas prices. The policy is supported by both my bosses, the Business Secretary and Energy Secretary, as well as the Chancellor.
Question
When will we be able to give the ceramics sector the support and clarity it needs for future operations?
Minister reply
We are working on fixing the issues faced by the ceramics industry, including those related to energy prices. We continue to provide necessary support and time.
Question
Why is the Minister cutting North Sea jobs while buying from Chinese companies instead of investing in this country for high-skilled jobs?
Minister reply
The North Sea is declining due to less oil and gas, but we are putting incentives in place for supply chains in this country. We aim to ensure a managed transition with clean energy, lower bills, and security.
Question
How will the skills passport, investment in GB Energy, and investments in Cromarty Firth secure the future for the North Sea and high-paid jobs?
Minister reply
The industrial strategy is designed to support industries such as Grangemouth, Harland & Wolff, and ports like Stornoway. We are committed to building an industry we can be proud of.
Question
Will Scotland receive long-overdue investment for the Acorn carbon capture project in the spring statement?
Minister reply
We are hugely supportive of the Acorn project, which is an exciting opportunity. We will be investing £21.7 billion in carbon capture after years of failure by the previous government.
Question
Is she surprised at Reform UK's proposal to destroy North Sea jobs and expose us to Putin, which undermines economic growth?
Minister reply
The CBI report shows that the net zero economy grew by 10%, faster than the wider economy. We can bring down bills, secure good jobs, and make ourselves more energy secure.
Question
Will the Government bear in mind consumers when dealing with energy-intensive industries?
Minister reply
Energy-intensive industries talk to us about energy prices. We are looking at what we can do to ensure they can be profitable and grow.
Question
Does the Minister agree that the Opposition's new anti-renewables position undermines ambition in her constituency?
Minister reply
It is a shame that the national Conservative party Opposition do not seem clear on their policy. Where people can see jobs and benefits, councils support renewables.
Question
How does the Minister justify prioritising net zero when new licences awarded in the past decade have made only a marginal difference to overall production?
Minister reply
The statement highlights that new licences have made a marginal difference, but we are committed to supporting renewable energy and industry growth.
Polly Billington
Lab
East Thanet
Question
The previous Government’s lack of plan has resulted in uncertainty for both workers and consumers. The Labour Party recognises the need to move towards renewable energy as soon as possible.
Minister reply
Our manifesto was clear that we would not issue new licences, revoke existing ones, but manage fields for their entire lifespan. We welcome everyone’s views through our consultation process.
Ellie Chowns
Green
North Herefordshire
Question
Can you confirm that the 4 billion barrels of oil equivalent currently in the North sea will not be pumped, given its significant climate implications?
Minister reply
We are consulting on the details to address the complexities involved. We will manage existing fields without revoking licences.
Leigh Ingham
Lab
Stafford
Question
In Stafford, Eccleshall and villages, GE Vernova’s base supports over 1,700 jobs and provides technology for over 30% of UK electricity. Does the Minister agree that moving to clean home-grown power is the only solution?
Minister reply
We will continue to encourage growth in the clean energy sector through our industrial strategy with its eight sector plans.
Lincoln Jopp
Con
Spelthorne
Question
BP, headquartered in my constituency, is investing $10 billion a year from next year. Is the Minister concerned that making Britain a hostile environment for oil and gas extraction will lead to this investment going overseas?
Minister reply
We are working closely with BP on our renewables agenda, carbon capture and hydrogen production.
Perran Moon
Lab
Camborne and Redruth
Question
This Government embrace the golden triangle: energy security, transitioning to net zero, and jobs in Scotland and Cornwall. Does the Minister agree with this approach?
Minister reply
I am working hard on bringing as many jobs as possible to his constituency while embracing the golden triangle.
Edinburgh West
Question
We need to move away from fossil fuels but also recognise that we are not there yet and this is not the moment to push the industry off a cliff. We will still need oil for decades, so what are the Government going to do about that?
Minister reply
We are managing the transition by not revoking existing licences and ensuring fields operate until their lifespan ends.
Steve Yemm
Lab
Mansfield
Question
What steps is her Department taking to ensure we benefit from the opportunities offered by net zero through Great British Energy and the National Wealth Fund?
Minister reply
The National Wealth Fund and Great British Energy will be important in this space, encouraging supply chains and jobs here in the UK.
John Cooper
Con
Dumfries and Galloway
Question
We are stuck between a rock and a hard place with Vladimir Putin on one side driving up energy bills and her dogmatic Secretary of State for Energy Security and Net Zero on the other.
Minister reply
Putin's invasion led to the global shock in energy prices, while our Secretary of State is pragmatically taking forward plans to protect and grow jobs and give us energy security.
Brian Leishman
Lab
Alloa and Grangemouth
Question
The workers at the Grangemouth refinery are victims of an unjust transition. What ownership role will the UK Government take in new energy industries?
Minister reply
We have made announcements about support for Grangemouth, including a £200 million investment from the National Wealth Fund and we look at businesses and industries for Grangemouth’s future.
Jim Shannon
DUP
Strangford
Question
While welcoming the move towards clean energy, how will the Minister ensure that clean energy and heat are not out of reach for those already struggling?
Minister reply
We have increased the warm home discount so 6 million households get £150 to help with their energy bills.
Shadow Comment
Andrew Bowie
Shadow Comment
The Government's consultation is a joke and represents their ignorance of the oil and gas industry. The energy profits levy remains high due to Labour's policies, causing investment to dry up and work to be paused. High-paying jobs in renewables do not yet exist in the north-east of Scotland, leading workers to seek opportunities abroad. This policy will cost our economy £24 billion in lost tax revenue and capital investment. Moreover, it increases reliance on foreign imports and carbon emissions from liquefied natural gas imported from the USA or Norway.
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