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North Sea Oil and Gas
09 February 2022
Lead MP
Greg Hands
Debate Type
Ministerial Statement
Tags
TaxationClimateEnergyBusiness & Trade
Other Contributors: 17
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.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
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.
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.
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.
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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