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Petroleum Act 1998 (Amendment) Bill - Clause 1 - Duty to invite applications for offshore licences
20 February 2024
Lead MP
Alok Sharma
Debate Type
Bill Debate
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Other Contributors: 50
At a Glance
Alok Sharma raised concerns about petroleum act 1998 (amendment) bill - clause 1 - duty to invite applications for offshore licences in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The amendment proposed by Alok Sharma seeks to prevent the OGA from inviting new seaward area production application licences until a ban on flaring and venting is in place. It requires regulations to be introduced by the Secretary of State that prohibit routine flaring and venting for all offshore installations operating in UK waters, with strict adherence to these rules after 2030. The amendment also includes provisions for parliamentary oversight through annulment if necessary.
Rosie Winterton
Lab
Rotherham
Mrs Winterton moved several amendments to Clause 1, including a requirement for new licences to commit to net-zero carbon footprints and align with refining at Grangemouth. She also introduced tests like climate, energy and job security, just transition, and home energy efficiency to be applied by the OGA before inviting applications.
John Redwood
Con
Wokingham
Mr Redwood interjected to question why importing liquefied natural gas with higher CO2 emissions would be preferred over domestic production, suggesting that regulations proposed by Mrs Winterton do not address imported gas appropriately.
Alan Whitehead
Lab
Southampton Testo
Mr. Whitehead argued against the current form of the bill and proposed amendments that include a climate change test based on reports from the IPCC to ensure compatibility with limiting global warming to 1.5°C. He also highlighted the inadequacies in the carbon intensity test by suggesting it should consider methane emissions alongside CO2.
Barry Gardiner
Lab
Brent West
[INTERVENTION] Don’t pull any punches!
[INTERVENTION] The shadow Minister has said that getting more of our own gas out of the North sea would help our security of supply and reduce CO2 because it would displace imported LNG, so why does he not support that proposition?
[INTERVENTION] Following on from the question from my right hon. Friend the Member for Wokingham (John Redwood), is it therefore Labour’s position not to allow any new oil and gas licences in the future, if Labour were to come into power? [INTERVENTION] I take on board the hon. Gentleman’s comment that, overall, 30% of our gas comes from Norway. Yes, that is the majority of our imports, but it is still 30% overall. Nobody in this House has authority over Norway’s future oil and gas prospects, but would he be in favour of the Norwegian Government exploring for new oil and gas to supply to us?
[INTERVENTION] Does the hon. Gentleman agree that it might be useful to remind Conservative Members that, according to the UN production gap report, Governments are already planning for their existing developments to produce more than double the amount of fossil fuels in 2030 than is consistent with keeping global heating to 1.5°C or below? The idea that anyone can have vast new developments is not compatible with keeping below our climate target.
Selaine Saxby
Con
Tiverton and Honiton
The clause is necessary to address spatial pressures in marine areas. It supports energy security through renewables while protecting traditional industries like fishing and ensuring biodiversity conservation. The Celtic sea example highlights strategic planning for floating offshore wind, which opens up 80% of offshore wind resources and requires careful cable route planning.
David Duguid
Con
Cotswold
Supports the idea of balancing various interests in marine space, arguing against a binary view that pits one industry against another. Emphasises the importance of collaboration to ensure all stakeholders have a voice.
John Redwood
Con
Wokingham
Acknowledges the potential for less intrusive development by utilising existing infrastructure in the North Sea, suggesting it could be beneficial to explore adjacent oil and gas deposits near existing facilities.
Dave Doogan
SNP
Angus and Perthshire Glens
The amendments aim to ensure a just transition by requiring new licences to meet specific criteria including lowering energy bills, delivering energy security, enhancing job security in oil and gas areas, guaranteeing funding for refineries, stimulating the sector, and meeting greenhouse gas emission reduction targets.
Kirsten Oswald
SNP
West Scotland
The Prime Minister's claims about reducing energy bills are false. The Government's only intention is to unlock tax revenue from North sea oil and gas, ignoring considerations for domestic energy bills, energy security, or climate commitments.
Douglas Ross
Conservative Party
Orcadian Islands
Asked if the SNP's draft energy strategy includes a presumption against new licences. This questioning suggests that the SNP position is contrary to the need for exploration and development in the oil and gas sector.
David Duguid
Conservative Party
Hull East
Asked if the SNP supports the North sea transition deal entirely. This intervention highlights potential inconsistencies within the SNP's position on oil and gas exploration and development.
Angus MacNeil
SNP
Na h-Eileanan an Iar
Suggested that zonal and modal energy market modelling could reduce energy costs, advocating for a tailored approach rather than a one-size-fits-all model.
Rosie Winterton
Lab
Nostall
Warned Members to focus on amendments during Committee stage but noted scope for discussion of clauses 1 and 2 stand part.
Peter Aldous
Con
Waveney
Stressed the significant role of oil and gas in his constituency and highlighted the need for consistency in policy to secure investment. He mentioned that the North Sea Transition Authority (NSTA) has a good track record on emissions reduction and marine spatial planning. He argued against political meddling and supported negotiating amendments through the NSTA-industry partnership approach established by the North sea transition deal.
Barnsley East
Mr Russell-Moyle supports amendments regarding the Energy Charter Treaty and energy efficiency tests. He argues that the treaty is detrimental to climate goals, costing billions in compensation, and proposes a test for home heating before granting new oil and gas licences.
Graham Stuart
Con
Beverley and Holderness
[INTERVENTION] Mr Stuart questioned the relevance of the proposed amendments to the current debate, indicating disagreement with or confusion about their application.
Dave Doogan
SNP
Angus and Perthshire Glens
Intervened to argue that taking licence issuance out of the political arena and into bureaucratic control does not mean less oil and gas production, but rather ensures tax receipts are invested wisely in future energy needs. He suggests a more circumspect approach is necessary as the industry transitions towards renewables.
Caroline Lucas
Green
Brighton, Pavilion
I propose amendments that insert a climate test and a just transition plans test into the Energy Security Bill. These amendments aim to ensure proposed licensing rounds do not undermine global efforts to limit global heating to 1.5°C. The just transition plans must be compatible with limiting global heating, involve formalised collective agreements with unions, and address concerns such as retraining costs for workers.
David Duguid
Con
Banff and Buchan
[Intervention] I acknowledge Offshore Energies UK's reference to a 'Goldilocks zone' as an optimal period for utilising existing skills, supply chains, and technologies in oil and gas to deliver net zero.
Barry Gardiner
Lab
Brent West
[Intervention] Debates about LNG from Qatar overlook that increased production there will contribute emissions. A better approach is not producing them at all, rather than producing something with fewer carbon emissions.
Neale Hanvey
Alba
Kirkcaldy and Cowdenbeath
Amendment 15 would strengthen UK Government ambitions on energy independence, safeguarding domestic supplies, reducing emissions, protecting jobs, and working towards net zero. Scotland’s infrastructure is well-placed for carbon capture and storage, with significant capacity in saline aquifers and abandoned hydrocarbon fields. The amendment calls for political will and investment to utilise this potential.
David Duguid
Con
Banff and Buchan
Asked a question about linking offshore exploration licences with subsequent carbon capture and storage, suggesting concerns about the practicality of enforcing net zero commitments through licensing conditions.
Wera Hobhouse
Lib Dem
Bath
Opposes the Bill as it flies in the face of climate change commitments. Supports amendments to prevent methane flaring and venting, which are potent greenhouse gases, and new clause 23 to mandate monthly leak detection and repair activity. Also supports withdrawal from the energy charter treaty.
Barry Gardiner
Lab
Brent West
The Bill does not lower energy bills or help meet climate targets. It provides false hope and sends confusing signals, ignoring the decline in oil and gas employment and the need for a just transition. The North Sea is nearly empty with only 103 days of gas available from new licences until 2050. Amendments are needed to manage the decline with retraining and skill development. The Bill ignores workers' livelihoods and sends contradictory signals about future energy policies.
Intervened to agree that there has been a decline in oil and gas employment, but argued that the debate should focus on managing this decline with reference to current energy needs. Emphasised the need for a Goldilocks period where the industry's skills and technologies are used to promote renewables-based future.
Kenny MacAskill
SNP
East Lothian
Supports amendment 15 to ensure Scotland's oil is refined in Scotland’s refinery. Argues that maintaining the Grangemouth refinery is crucial for economic security, jobs and skills retention, energy security, and environmental considerations. Emphasises the importance of keeping the refinery operational until it can transition into biofuel production.
Dave Doogan
SNP
Angus and Perthshire Glens
[INTERVENTION] Supports ambition to maintain hydrocarbon future at Grangemouth, with a focus on sustainable aviation fuel, biofuels and hydrogen production. Emphasises the need for economic sustainability and environmental responsibility in transitioning towards renewable energy.
Barry Gardiner
Lab
Brent North
Argues that there is already more oil and gas in the world than needed to stay within the 1.5°C threshold, questioning the environmental impact of new exploration licences.
Dave Doogan
SNP
Angus and Perthshire Glens
Asked for clarification on certain points without making a full argument, indicating opposition to the amendments.
Reiterates that reducing producer emissions domestically while increasing reliance on imported consumer emissions is counterproductive and damaging for public support.
Graham Stuart
Con
Beverley and Holderness
Mr. Graham Stuart moved the Bill to its third reading. He thanked members from across the House, including those who spoke for robust scrutiny. His position was that the Offshore Petroleum Licensing Bill will provide industry with certainty in continuing investments in the North Sea while supporting the transition to net zero.
Alison Thewliss
SNP
Glasgow Central
Ms. Alison Thewliss questioned the Minister's claim about looking at demand and asked for a national insulation programme to reduce energy demand through home insulation.
Jim Shannon
DUP
Strangford
Mr. Jim Shannon inquired if the Minister intended to contact the Northern Ireland Assembly to promote the contract for difference scheme, which was previously indicated as a responsibility of the Northern Ireland Assembly.
Alan Whitehead
Lab
Southampton, Test
He criticises the bill for its misleading claims about improving energy security and reducing bills. He argues that it does not align with international commitments on climate change and will undermine future investment in the North Sea. The amendment seeks to redirect focus towards a balanced transition strategy, emphasising the importance of renewable energy and job security.
Graham Stuart
Con
Beverley and Holderness
Intervened to correct the shadow Minister's mischaracterisation of a previous debate. He cited Offshore Energies UK’s estimate that Labour’s policy could cost 42,000 jobs and £26 billion in economic value.
Douglas Ross
Con
Moray
Asked the shadow Minister about potential job losses in the north-east of Scotland under Labour’s policy, citing a letter from Aberdeen and Grampian chamber of commerce warning that North Sea production could cease prematurely.
Sammy Wilson
DUP
East Antrim
Sought to intervene but the exact content of his intervention is not provided in the given text.
Dave Doogan
SNP
Angus and Perthshire Glens
Mr Doogan intervenes to challenge Mr Ross's claims about the SNP wanting to decimate the oil and gas industry. He asserts that the association between licences issued and job protection is specious, noting that the SNP leader emphasises the need for a transition towards renewable energy.
Nigel Evans
Con
Central Fife
Mr Evans briefly intervenes to remind Members that this is Third Reading and should not involve reopening previous debates. However, his intervention does not contribute significantly to the debate on Clause 13.
Sammy Wilson
DUP
East Antrim
Mr Wilson expresses confusion over Mr Doogan’s comments about licences and job protection, questioning how protecting jobs can be achieved without extracting oil from the ground. This intervention highlights the complexity of balancing economic support for the industry with environmental concerns.
Wera Hobhouse
Lib Dem
Bath
Ms Hobhouse questions how increasing North Sea production aligns with achieving net zero emissions and limiting global temperature rise to 1.5C by 2050. She argues that the current path exceeds these targets, suggesting a need for a different approach.
Dave Doogan
SNP
Angus and Perthshire Glens
Mr Doogan argued that the bill lacks merit as it attempts to solve a non-existent problem. He noted that the North Sea Transition Authority is already issuing licences, rendering the proposed clause redundant and potentially harmful by creating conflict where there was broad consensus on a just transition towards combating climate change. Mr Doogan highlighted the lack of measures in the bill to offset the demand for more drilling licences within the North Sea basin, suggesting it could have included provisions to allocate a percentage of revenues from oil and gas extraction directly into renewable energy transitions. He criticised the government's focus solely on the supply side without adequately addressing demand reduction through insulation projects, electric vehicle adoption, and decarbonisation efforts.
Douglas Ross
Conservative Party
Moray
[INTERVENTION]: Mr Ross challenged Mr Doogan's criticism of the UK Government by pointing out that the Scottish National Party, which has been in power in Scotland for 17 years, repeatedly missed its climate change targets. He implied that if the SNP and Scottish government had taken more action to insulate homes, promote electric vehicles, and install charging points, they would have better addressed climate issues.
Caroline Lucas
Green
Brighton, Pavilion
The bill is described as 'farcical and unnecessary' with a deep disappointment that the Government are putting the climate crisis at risk. The speaker points out that projects like Rosebank will not enhance security due to export issues, public opposition, and legal battles. She argues for accelerating cleaner energy roll-out instead of giving tax breaks to oil companies. She criticises government complacency on addressing climate targets and highlights the ongoing law case about meeting climate objectives. Caroline Lucas also emphasised scientists' warnings about mass extinction risks and urged the Government to halt new oil and gas development, quoting over 700 UK scientists who warned against contributing to further fossil fuel oversupply.
Wera Hobhouse
Lib Dem
Bath
The speaker argues that the Government's actions in delaying climate action and providing unlimited oil supply is dishonest. She criticises the Government for failing to make a responsible decision regarding energy security by turning their back on net zero commitments. Wera Hobhouse claims that the Bill does not improve energy security as new licences are expected to provide only four days of gas per annum between now and 2050, thus sending a symbolic signal without achieving its stated goals.
Sammy Wilson
DUP
East Antrim
Supports the Bill and its objectives, arguing that it will provide jobs in Britain, tax revenue for public services, and reduce imports. Challenges opponents by asking why there is passionate opposition if the Bill does not introduce anything new. He criticises those who cannot give a commitment to continue allowing licences under their Administration, suggesting the Bill is real and necessary. Raises concerns about long-term confidence in the economy due to upcoming elections. Also highlights legal challenges that could impede the benefits of the Bill.
Richard Foord
Lib Dem
Honiton and Sidmouth
Argues against the Bill, highlighting its inadequacy in addressing energy security through sustainable means. He points out that 80% of oil extracted is exported, hence it won not significantly impact consumers’ energy bills. Cites a case study on flooding to underscore climate change impacts and emphasises the economic benefits of renewable energy over fossil fuels. Criticises the Government for being too scared to embrace the future and make necessary changes towards a sustainable economy. Draws an analogy with Winston Churchill’s decision to switch from coal to oil in 1911, emphasising the need for innovative thinking and seizing opportunities presented by new sources of clean energy.
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