House of Commons · Urgent Question
27 October 2025 · 34 other contributors
Opened by Andrew Bowie Con West Aberdeenshire and Kincardine
Summarised by AI from the official record, so it can contain mistakes.
Andrew Bowie raised concerns about north sea oil and gas industry 2025-10-27 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm that the UK Government will support the North Sea oil and gas industry, particularly in light of Petrofac's entry into administration? The MP raises concerns about job losses and the impact on energy security and worker livelihoods.
Question
The urgent question is about job losses in the North Sea oil and gas industry due to Petrofac entering administration, blaming the Labour Government for creating a hostile trading environment which led to numerous job cuts.
Minister reply
The Minister responded by cautioning against undermining efforts to find a buyer for the UK arm of Petrofac and emphasised that such comments are irresponsible. He also pointed out that under his party's leadership, there have been significant steps taken towards a sustainable future in clean energy.
Question
The MP asked for details on how the Government will deliver the clean energy jobs plan and what support it expects from the Scottish Government.
Minister reply
The Minister confirmed that building up industries of the future is crucial, including carbon capture, hydrogen, offshore wind and supply chains. He also highlighted the importance of improving skills offer to ensure more young people in Scotland can take advantage of new job opportunities.
Question
The MP expressed concern about Petrofac's entry into administration and its impact on 2,000 jobs in Scotland. She also questioned the adequacy of job creation to match job losses.
Minister reply
The Minister stated that there are signs indicating a viable long-term future for Petrofac and emphasised ongoing efforts to support workers transitioning from oil and gas to clean energy industries.
Question
The MP stated that the urgent question was underpowered, questioning its relevance.
Minister reply
No specific response provided as the Speaker intervened to maintain order.
Question
I confirm my regular visits to Aberdeen to meet constituents in renewables, carbon capture and hydrogen sectors. I reiterate the benefits that Great British Energy’s investments will bring to the region.
Minister reply
We have been liaising with Petrofac over restructuring for some time, working closely on securing its UK arm's long-term future. We also address investment in renewables by ensuring the UK is a safe place to invest and building up supply chains for offshore and onshore wind, hydrogen, and carbon capture.
Question
What steps is the Minister taking to ensure that the UK arm of Petrofac has a long-term future in the context of our clean energy jobs plan?
Minister reply
We have been working closely with Petrofac on restructuring and will continue this effort. The company remains an in-demand business with successful contracts, demonstrating its success despite global challenges.
Question
What urgent action will the Government take to restore confidence and stability in the energy sector?
Minister reply
We reject assertions that our policies are not based on evidence. Oil and gas remain crucial but we must also invest in renewables for long-term job creation, something lacking under previous administrations.
Question
When will the £200 million from the National Wealth Fund be spent to create jobs at Grangemouth?
Minister reply
We have been assessing proposals, meeting companies, including the Scottish Government Energy Minister. We aim for long-term, viable industrial opportunities that deliver sustained employment at Grangemouth.
Question
What are the Government doing about investment in jobs and skills for renewable industries and reforming taxation?
Minister reply
We recognise the need to invest in future jobs, working with Scottish Government on joint funding for transition support. On taxation, that is a matter for the Chancellor.
Question
Can the Minister reassure me about extensive work with colleges and employers in Scotland to ensure skills transition from oil and gas into renewables?
Minister reply
We are committed to ensuring jobs are delivered now while maintaining confidence for private sector investment. We also cooperate closely with the Scottish Government on skill opportunities.
Question
Does the Minister think that creating the most unstable fiscal environment in the world makes it more or less likely for Petrofac to find a buyer?
Minister reply
We are committed to restoring confidence and stability in our oil and gas sector, recognising the risks of losing more jobs without credible plans.
Question
Does the Minister appreciate how recent events feel like another hammer blow for Aberdeen and its skilled workers? What concrete steps will he take to ensure these workers are not driven away due to a lack of opportunities?
Minister reply
The minister acknowledged the challenges but emphasised that the jobs at Petrofac have been protected and continue as normal. He stated that there is no immediate hammer blow, and he recognises the need for investment in future jobs while ensuring processes are in place so people can take advantage of those jobs easily.
Question
Does the Minister think it wise that the SNP wants to scrap the energy profits levy without a clear replacement, and is this leadership for the oil and gas sector?
Minister reply
The minister stated that while they recognise the need for a future plan beyond the current energy profits levy, he noted that talking down investments in carbon capture, hydrogen, offshore wind and supply chains would not drive forward the jobs of the future alongside critical oil and gas jobs.
Question
Why does the Government refuse to issue new licences for exploiting new gas fields in the North Sea, when such licensing could provide economic benefits?
Minister reply
The minister explained that the Government was elected on a manifesto commitment not to issue new exploration licenses. However, they support existing field operations and are committed to managing the basin's future, investing in industries that will come next while supporting oil and gas jobs.
Question
What more can be done within supply chains to support a just transition for workers without relying on controversial projects like Rosebank?
Minister reply
The minister responded that the Government is committed to a genuinely just transition and will deliver a plan that supports both job protection and environmental goals. He stated that they are aware of previous mistakes in transitions and are working towards a better future.
Question
Given the concerns raised about policy issues such as the energy profits levy and exploration bans, what specific steps will the Minister take to address these challenges?
Minister reply
The minister acknowledged the need for a viable future for workers but emphasised that they are consulting on future licensing positions. He stressed the importance of ensuring Treasury gains value from price spikes and noted that any significant tax cuts would require alternative revenue sources.
Question
How can tiebacks be used as a pragmatic step to aid the transition in existing oil infrastructure, and what opportunities might be missed without such measures?
Minister reply
The minister welcomed the discussion on tiebacks, which are important for reducing costs and extending critical infrastructure life. He stated that they will come to a pragmatic position on future licensing positions while consulting on various factors.
Question
For how many years do the Government estimate we will have to import foreign oil and gas as a result of not fully exploiting our own supplies?
Minister reply
The minister responded by pointing out that imports had been ongoing for many years under previous administrations. He emphasised that his government would ensure the transition was managed effectively, delivering economic opportunities from future technologies.
Question
I am not sure that there was a hugely coherent argument there. The hon. Gentleman seems to say that the future might be in clean energy jobs, but he says, “They might not be delivered fast enough, so we should not bother doing it.” We think there is an important long-term future in delivering clean energy, including in his constituency, where many supply chain jobs will be delivered, and he is against that economic investment. He should explain to his constituents and to the wider country why Reform wants to make this country more energy-dependent, not less energy-dependent, and why it is against the economic opportunities that our proposals bring.
Minister reply
I thank my hon. Friend for his question, and particularly for mentioning retraining. We see huge opportunities for people who are in the middle of careers to transfer into the energy system. Just in the past few weeks, we have been looking at a scheme to support veterans leaving the armed forces in getting jobs building infrastructure.
Question
I recently visited the Bacton gas terminal in my area, which already provides up to one third of our nation’s gas supply and is ideally placed to be a carbon capture and hydrogen hub. The Minister has just talked about jobs; I want those jobs in my area. Will he recognise the vital role that the east of England plays, back Bacton’s plans to ensure its low-carbon future, and help to secure good, local jobs?
Minister reply
My hon. Friend is right to highlight that this is a huge opportunity, which the previous Government talked about a lot but did not actually move forward on delivering. In the spending review, there were significant amounts of investment to move forward with the carbon capture clusters, and we have followed that up with specific investments over the past few months.
Question
I thank the Minister for the engagement we have had over the future of Lindsey oil refinery in my constituency. Can he give any indication of what support the Government might give, and when a final decision might be taken? Will he at least acknowledge that new licences in the North sea would offer job opportunities for those people whose jobs are at risk?
Minister reply
I thank the hon. Gentleman for the engagement we have had on this issue. Obviously, the failure of the company that was previously running the Prax Lindsey oil refinery has had a really significant impact.
Question
It is very important to increase the number of skilled jobs in renewables and in hydrogen. I welcome the Minister’s mention of the Government’s clean jobs plan; can he say more about that plan, and in particular about training and development for younger staff, as well as retraining for existing staff?
Minister reply
We want to make sure that we have the jobs and training opportunities that go with it, so that the people of our country get an economic advantage, as well as the country getting the energy security.
Question
Today’s Petrofac news has nothing to do with UK oil and gas policy. This is a company with a long history of financial challenges and mismanagement; it was fined millions for bribery, lost £6 billion in value since 2012, and has now lost a contract with the Netherlands. Does the Minister agree that any attempt to claim otherwise is blatant political point scoring by the Tories and others with a head-in-the-sand climate denial agenda, and is a distraction from what really matters, which is ensuring that every worker whose job is affected by today’s news is properly supported?
Minister reply
I agree with the hon. Lady on the wider point, which is that—as I outlined in my opening answer—Petrofac has not had its troubles to seek.
Question
Every month, 1,000-plus people lose their jobs in North sea oil and gas. Contrary to the case that the Minister presents, the industry says that this declining basin still has 4 billion additional barrels that could be extracted, if only there were new licences. He tells the House that that oil and gas will be needed for decades to come, yet he cuts off all new supply, mortally damaging the whole supply chain, of which Petrofac is part. The Minister cannot deny responsibility, and he needs to persuade the Chancellor—if not his Secretary of State, who is probably beyond persuasion—that we need to move to a practical policy that includes new licences.
Minister reply
First, I welcome the right hon. Gentleman’s recognition—which we seldom hear from his party’s Front Benchers these days—that this is a transition, and that we want the economic opportunities of oil and gas and those of renewables.
Question
Does the Minister really consider this a just transition? We have thousands of contractors arriving in the highlands. They stay in workers’ camps, and very few legacy houses are agreed. The companies are not employing local people, and this is all in an area with the greatest fuel poverty in Britain.
Minister reply
We know that winter has come when the hon. Gentleman turns up in his lovely knitted jumpers; it is a pleasure to see them back again.
Question
Has the Minister made any estimate of the likely impact on Petrofac and similar enterprises of the extension of the energy profits levy?
Minister reply
As I have said in a number of answers, the UK arm of Petrofac is a successful and growing business. Its holding company went into administration today due to a number of factors, including the loss of an international contract.
Question
Does the Minister agree that future-proofing our energy industries against job losses and rising costs requires a clear strategy and timely decisions from this Government?
Minister reply
The hon. Lady rightly raises issues about nuclear in Wales, acknowledging that we have concluded the small modular reactor programme inherited from the previous government but are progressing with Hinkley Point C, Sizewell C, SMR programme, and private sector investment.
Question
Does the Minister recognise that cutting the oil and gas industry leads to higher domestic prices, business prices, and job losses?
Minister reply
No. The clean power we are building will remove gas as a price setter on our system, which is cheaper than fossil fuels. Solar energy is currently the cheapest form of electricity we can build.
Question
How many companies must go under before the Government realise that Great Britain cannot build a resilient and secure energy system by shutting down the energy industry?
Minister reply
Petrofac’s UK arm is not going under; it remains successful, and we are working with the company to ensure its long-term future.
Question
If the electricity price in the UK were set by clean energy more often, would the UK not be a more attractive destination for investment in energy generation?
Minister reply
The hon. Gentleman is correct that getting off fossil fuels and onto clean energy will deliver long-term energy security, economic opportunity, and lower bills.
Question
Will the Minister issue new oil and gas licences to support jobs and help energy companies cut fuel costs?
Minister reply
Even issuing new licences would not bring down bills as extracted North sea resources would be traded on international markets. The long-term future is a mix of nuclear and renewables, which will remove us from fossil fuel volatility.
Question
Can the Minister explain how banning new drilling for oil and gas while importing higher-cost gas will bring bills down by £300?
Minister reply
Over past years, people paid prices due to fossil fuel exposure. This Government aims not to make same mistake again, building clean power system instead of returning to fossil fuel casino.
Question
Does the Minister accept that uncertainty in government support affects future sustainability of North sea industry and we should continue investing until oil and gas are no longer needed?
Minister reply
The hon. Gentleman’s wider question is acknowledged regarding supply chain jobs impacted by job losses, but we need to build new energy infrastructure here, creating jobs locally.
Government Response
The Minister stated that the UK arm of Petrofac has not entered administration and is continuing to operate normally. He acknowledged long-standing issues at Petrofac but emphasised that the company's UK arm remains successful and growing, with recent contract extensions indicating a viable future. The Government will continue to support efforts to find a commercial resolution for the business while maintaining close contact with the company. Additionally, the Minister highlighted plans for building a world-leading offshore clean energy industry in the North Sea alongside managing existing oil and gas fields, promising over 400,000 new jobs across the UK by the end of the decade.