Offshore Petroleum Licensing Bill

Debate between Lord Sharma and John Redwood

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Sir Alok Sharma]

I refer the House to my entry in the Register of Members’ Financial Interests.

On Second Reading, I said that this Bill was something of a distraction and not necessary on the basis that the North Sea Transition Authority can already grant licences annually or, indeed, whenever it considers it necessary. That will not change with the Bill. I also noted at the time that the two statutory tests in the Bill have been designed in such a way that the computer always says yes to new oil and gas licences, but I also said that I would work with other like-minded colleagues to improve the Bill and bring in further tests that need to be met before any new oil and gas production licences are granted. That is what I and other Members have sought to do.

Amendment 12 seeks to do two things. First, it would stop the invitation of new production application licences until the Secretary of State has introduced a ban on the flaring and venting of methane by new offshore installations. Secondly, it would require the Secretary of State to prevent licensing rounds from 2030 if a wider ban on flaring and venting is not in place. Along with other Members who have signed up to the amendment, I argue that this is an entirely reasonable ask that the Government and all Members should be able to get behind, given that all it modestly seeks to do is put into statute existing guidance on flaring and venting that was issued by the North Sea Transition Authority.

Let me set out the precise wording of the principles that the NSTA expects industry to follow in relation to flaring and venting across all UK continental shelf areas. First,

“flaring and venting and associated emissions should be at the lowest possible levels in the circumstances”.

Secondly, there should be

“zero routine flaring and venting for all by 2030”.

Thirdly,

“all new developments should be planned and developed on the basis of zero routine flaring and venting.”

That is a set of NSTA principles with which amendment 12 in entirely consistent.

[John Redwood (Wokingham) (Con)]

Can my right hon. Friend explain why it would be better to import liquefied natural gas, with four times the amount of CO₂ produced, rather than have our own gas? His regulations would not apply to the foreign-produced gas we import.

[Sir Alok Sharma]

My right hon. Friend makes an important point: LNG has a higher carbon-intensity footprint. But the majority of the gas that we import comes by pipeline from Norway, and the production intensity of Norwegian gas is around half that of the UK’s.

[John Redwood]

Will my right hon. Friend give way?

[Sir Alok Sharma]

If I may, I will continue. In their response last year to the Environmental Audit Committee’s report on accelerating the transition from fossil fuels and securing energy supplies, the Government doubled down on the NSTA position. Responding to the EAC recommendation, which called for the banning of flaring from UK installations, the Government noted that they had already signed up to

“make every effort to ensure that routine flaring from existing oil fields ends as soon as possible, and no later than 2030.”

The Government response went on to highlight the NSTA guidance that new developments are approved on the basis of zero routine flaring and venting.

My right hon. Friend the Member for Wokingham (John Redwood) raised the issue of imported gas. I will just point out to him that, unfortunately, flaring is still a common practice in the UK. By contrast, Norway banned routine flaring in 1971, and the carbon intensity of Norwegian gas production is around half that of UK domestic production.

[John Redwood]

The marginal gas we would import would come from Qatar or the United States of America. There is not an infinite supply of Norwegian gas, so my right hon. Friend is missing the main point.

[Sir Alok Sharma]

With respect, I do not think I am missing the main point. The point that the Government are pursuing is to ensure that we have less use of fossil fuels overall and that we expand our renewable capacity, including nuclear, which I know my right hon. Friend supports. That is where we should be going with this strategy. The ban on flaring in Norway is one of the key reasons that Norway has become a leader in the cleaner production of oil and gas, which this Government have clearly indicated that they also want for UK production.

I am looking forward to hearing the Minister’s response to amendment 12. I hope he will say that, given that it is consistent with Government policy and guidance, the Government will introduce a similar amendment in the other place. If they choose not to do that, I am pretty sure that a similar amendment will be tabled in the other place anyway, and that it is likely to be supported. I would just humbly observe that if the Government whip against this or any similar amendment, either in this House or in the other place, they will put colleagues in the absurd position of effectively having to vote against existing Government policy. I am really looking forward to listening to what the Minister has to say.

Energy Bill [Lords]

Debate between Lord Sharma and John Redwood

Report stage
Tuesday 5th September 2023 Commons Chamber

[Sir Alok Sharma (Reading West) (Con)]

Thank you, Mr Deputy Speaker.

I do support the overall aim of the Bill, but, in the interests of brevity, I will limit my comments to new clause 43 on onshore wind. I thank all colleagues who have co-signed this new clause, which of course builds on the excellent work that my right hon. Friend the Member for Middlesbrough South and East Cleveland (Sir Simon Clarke) led last year when trying to put in place a more permissive planning regime for onshore wind.

Onshore wind is one of the cheapest sources of energy available. It is also one of the quickest to deploy. Getting more home-grown clean energy deployed is about enhancing our energy security, our climate security and our national security, all of which are totally interlinked. It is also ultimately about bringing down bills. That is why onshore wind needs to be a meaningful part of a diversified energy mix.

We currently have 14 GW of installed onshore wind capacity across the UK with the ability to power around 12 million homes. However, as we all know, due to planning rule changes, since 2015 we have had a de facto ban on onshore wind. Just one objection is able to defeat a planning application. Frankly, that is not a sensible way for a planning process to operate. As a result, in England planning permissions have been granted for just 15 wind turbines over the past five years. It is also worth pointing out that, had onshore wind annual build-out rates stayed at the average pre-ban level, an extra 1.7 GW would have been added by last winter. That is the equivalent of powering 1.5 million homes for the entire winter, and it would have avoided between 2% and 3% of the UK’s annual net gas imports being burned in our power stations.

[John Redwood]

Does my right hon. Friend accept, on the cost argument, that we also need to build a new gas turbine station as back-up for when the wind does not blow?

[Sir Alok Sharma]

We do need a diversified energy system, and I think the Minister set out all the work that is going on on nuclear, for example. However, as we drive forward for greater energy security, we need to change the planning rules to allow more onshore wind. The objectives of new clause 43 are to ensure a more permissive planning regime. The new clause seeks to lift the current planning restriction that in effect means that a single objection can block a development. It also seeks to ensure that local communities willing to take onshore wind developments will receive direct community benefits.

The Government have today responded to new clause 43 by bringing forward a written ministerial statement on onshore wind. I thank the Government for the constructive dialogue we have had over the past days on this issue. I acknowledge that that written ministerial statement, and indeed the accompanying changes to the national planning policy framework, move things forward and will help to deliver a more permissive planning regime for onshore wind.

The de facto ban is lifted. The statement clarifies that the policy intent is not to allow very limited objections or even a single objection to ban a planning application, and it is explicit that local communities willing to host onshore wind farms should directly benefit, including potentially through energy discounts. That is positive, but we do need to see the Government’s formal response to their consultation on this issue to understand the detail of the precise mechanism by which the benefits regime will work.

I also welcome the fact that local plans will not be the only route to delivering more onshore wind, with more agile and targeted routes available. Of course it is now a requirement for local planning authorities to support community-led initiatives for renewable and low-carbon energy. Vitally, those policy changes are effective today.