Commons Sense

House of Commons · Ministers' Questions

Oil and Gas Sector

Wednesday 15 December 2021 · 5 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • The UK will continue to need oil and gas during the transition to net zero, with domestic production protecting jobs and reducing reliance on less environmentally regulated imports.
  • The Secretary of State supports expediting the Acorn project for the next funding wave in 2023, emphasizing the importance of stakeholder cooperation to improve the bid.
  • The Secretary of State criticized the First Minister of Scotland and a Green party MSP for their statements on oil and gas workers, asserting continued need for oil and gas beyond 2050.

Topics (select to filter)

Questions & Answers

Q1 Andrew Jones Con
Climate Scotland Energy
Context

The MP asked about the role of domestic production during the transition to net-zero. He highlighted that UK domestic production could meet the need for oil and gas while protecting jobs.

Question

What discussions he has had with Cabinet colleagues on the future of the oil and gas sector in Scotland? In the transition period to our net-zero future, we will still need oil and gas for domestic use. What role does the Secretary of State see for UK domestic production to meet that need, because the Scottish economy is well poised to deliver it?

Answer from Alister Jack

My hon. Friend is right: we will continue to need oil and gas as we transition to net zero. Developing our own supplies reduces reliance on imports that are produced to less rigorous environmental standards. It will also protect jobs in our oil and gas sector during our transition.

Partly answered

Not addressed: The answer did not address the specific role of UK domestic production as asked but provided general support for continued production.

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Q2 Andrew Jones Con
Business & Trade
Context

The MP referenced evidence given to the Scottish Parliament's committee by Professor Stuart Haszeldine, who doubted the effectiveness of Acorn project's reserve bidder status due to lack of funding.

Question

Is the Secretary of State aware of the evidence that suggests the Acorn project merely involves 'a lot of meetings' and requires companies to run on the spot with very little or no funding? Is the professor wrong in his assessment?

Answer from Alister Jack

Acorn is the reserve for this round, and we would like it to be expedited in the next wave. We have met many of the stakeholders involved in the project, and they have agreed that if we can accelerate it to 2023, they can improve the bid and the Government can include it in the next wave.

Partly answered

Not addressed: The answer did not address whether Professor Stuart Haszeldine's assessment is incorrect but provided information on expediting the project.

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Q3 Richard Thomson
Scotland Energy
Context

The MP expressed concern over the Scottish Government's stance on further exploration in the North Sea, questioning whether they are supporting north-east oil and gas workers adequately.

Question

Does my right hon. Friend agree that the complete abandonment of north-east oil and gas workers by the First Minister of Scotland is an absolute disgrace? She did not call for an end just to Cambo; it was to all further exploration in the North sea. Will the Secretary of State confirm that this Government stand full square behind the industry and workers in the north-east, unlike the Scottish Government?

Answer from Alister Jack

I would add that the remark of the First Minister's Minister, the Green party MSP, who said that only “hard-right extremists” want to explore oil, was also disgraceful. Even when we get to 2050, we will need oil for 20% of our power, and we will need gas for 15%, and for producing blue hydrogen.

Not addressed: The answer did not address the specific support for north-east oil and gas workers but criticized a comment by another MP instead.

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Q4 Andrew Bowie Con West Aberdeenshire and Kincardine
Energy
Context

The MP questioned the government's decision to support Acorn and mentioned Sir Ian Wood's views on the Government's decision concerning the project.

Question

This is not just about what we extract from the North sea; it is also about what we put back in. That is why the Acorn project is fundamental. The Secretary of State mentioned Sir Ian Wood and his views on the oil and gas sector, but he will also be cognisant of Sir Ian Wood's views about his Government's decision to turn their back on Acorn. Will the Secretary of State finally admit to regretting the decision of his colleagues?

Answer from Alister Jack

I have discussed this matter with Sir Ian Wood, and I do not think the hon. Gentleman reflects his views fairly. Sir Ian Wood understands and agrees with us that the bid can be improved. To be clear, the difference between Acorn and Humberside, Teesside and Merseyside, was that Humberside, Teesside and Merseyside have a huge hinterland of industrial carbon.

Partly answered

Not addressed: The answer did not admit to regretting the decision but provided justification for it.

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Q5 Stephen Flynn SNP Aberdeen South
Climate Energy
Context

The MP continued to question the government's decision regarding Acorn and mentioned Sir Ian Wood's views on the importance of industrial carbon in making the bid viable.

Question

That is why the Secretary of State mentioned Sir Ian Wood and his views on the oil and gas sector, but he will also be cognisant of Sir Ian Wood's views about his Government's decision to turn their back on Acorn. Will the Secretary of State finally admit to regretting the decision of his colleagues?

Answer from Alister Jack

Acorn was bringing the carbon from all parts of the UK and/or Europe to make the bid work. We are working on how to get more industrial carbon into the project, to make it more viable and to expedite it for 2023.

Partly answered

Not addressed: The answer did not admit to regretting the decision but provided information on efforts to improve Acorn's viability through industrial carbon.

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