Commons Sense

House of Commons · Ministerial Statement

North Sea Oil and Gas

09 February 2022 · 17 other contributors

Opened by Greg Hands Con Hammersmith

ClimateEnergy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Greg Hands raised concerns about north sea oil and gas in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • UK Government will continue to support the domestic oil and gas sector for energy security and job protection.
  • Flicking a switch on domestic sources overnight would risk energy security and increase dependence on foreign imports.
  • Licensing process includes environmental impact assessments and public consultations.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Greg Hands

The UK Government will continue to support the domestic oil and gas sector, arguing that it is essential for energy security, job protection, and technological innovation. Flicking a switch on domestic sources overnight would risk energy security and increase dependence on foreign imports. The licensing process is rigorous with environmental impact assessments and public consultations. Continued support aligns with net zero goals through the North Sea Transition Deal’s climate compatibility checkpoint introduced last year to ensure future consistency with these targets. Progress continues in nuclear development, small modular reactors funding, Hinkley Point C construction, and renewables investment.

Other contributors (17)
  • Bob Blackman Con Harrow East

    Question

    Does he welcome the successful nuclear fusion experiment? Does he agree that it is better to produce our own gas and oil than depend on foreign imports?

    Minister reply

    Agrees with producing domestic energy, highlights progress in nuclear power, small modular reactors funding, Hinkley Point C construction, future nuclear enabling fund.

  • Alan Whitehead

    Question

    The Government's failure on the transition to low-carbon energy; current proposals not compatible with 1.5° global warming limit?

    Minister reply

    Committed to zero-carbon energy by 2035, climate compatibility checkpoint for future licensing rounds ensures consistency with net zero goals.

  • Robert Jenrick Reform Newark

    Question

    Will reaffirm principles of fiscal stability and maximising economic recovery in the North Sea basin?

    Minister reply

    Supports domestic energy production to ensure security, 50% gas from UK continental shelf, investment needed for future transition.

  • Stephen Flynn SNP Aberdeen South

    Question

    When will show similar haste on carbon capture and storage, just transition fund, TNUoS account charging scandal?

    Minister reply

    Supports Scottish nuclear energy, CCUS reserve cluster supported, ideological opposition to oil and gas shows SNP unfit for energy policy.

  • Desmond Swayne Con New Forest West

    Question

    Nothing could be more dangerous to investment than the imposition of windfall taxes?

    Minister reply

    Windfall tax counterproductive, oil and gas sector pays twice the corporation rate, already paid £33.7 billion in taxes since 2010.

  • Kerry McCarthy Lab Bristol East

    Question

    How will approval of six new oilfields impact global efforts to keep within 1.5°C limit?

    Minister reply

    Welcomes COP President’s work, progress towards net zero after the conference, calls for phasing out coal through Powering Past Coal Alliance.

  • Adam Afriyie Con Windsor

    Question

    Compliments the Government for recognising that cheaper fuel supply must be prioritised, despite environmental concerns.

    Minister reply

    Acknowledges the need for a transition from existing energy sources to future energy solutions.

  • Wera Hobhouse Lib Dem Bath

    Question

    Questions the contradiction between granting oil and gas exploration licences and net zero commitments.

    Minister reply

    Clarifies that these are not new fields but existing licences, emphasising regulatory approval independence.

  • David Duguid Con Sherwood

    Question

    Asks if the oil and gas production aligns with net zero plans and transition to renewables.

    Minister reply

    Confirms that existing fields are factored into net zero strategy, highlighting potential future import reliance.

  • Matt Western Lab Warwick and Leamington

    Question

    Challenges the Prime Minister's stance on global responsibility versus domestic actions.

    Minister reply

    Defends the UK’s record in COP and net zero obligations, highlighting achievements like the Powering Past Coal Alliance.

  • Andrew Jones Con Harrogate and Knaresborough

    Question

    Asks if domestic production will meet transition needs.

    Minister reply

    Affirms the North Sea Transition Deal, emphasising obligations for both industry and government in transitioning to sustainable energy.

  • Sammy Wilson DUP East Antrim

    Question

    Welcomes investment creation but questions if safeguarding vulnerable people should take precedence over climate goals.

    Minister reply

    Asserts dual obligations of addressing climate change and delivering affordable energy, referencing the £9.1 billion support package.

  • Rachael Maskell Lab Co-op York Central

    Question

    Asks why a windfall tax is not imposed to help constituents with energy bills.

    Minister reply

    Explains that taxing UK activity globally could cost jobs and increase fuel prices, contrary to supporting vulnerable groups.

  • Neale Hanvey SNP Dunfermline and West Fife

    Question

    Proposes three actions for sustainable job creation and carbon reduction.

    Minister reply

    Agrees on parallel goals, suggests waiting for climate compatibility checkpoint results and offers to meet the MP.

  • Jonathan Edwards PC Carmarthen East and Dinefwr

    Question

    Questions if oil and gas exploitation is more about profit maximisation than domestic energy crisis mitigation.

    Minister reply

    Responds by highlighting the sector's tax contributions over time, questioning the timeframe of production doubling.

  • Jim Shannon DUP Strangford

    Question

    Asks how fuel prices for working families will be secured in the interim.

    Minister reply

    References Chancellor’s statement on support measures including a £350 rebate, wage increases, and local authority funds.

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