Offshore Petroleum Licensing Bill

Debate between Douglas Ross and Alan Whitehead

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

[Dr Whitehead]

We are talking about what the Government are doing through this policy—that is what we are concentrating on today. I hope we will have another much wider debate about the effect that a comprehensive transition policy for the whole North sea field would have, with associated arrangements for the transition of investment, energy security and worker and job security, in the context of future jobs and future energy security. Many people in the industry have already said that that is exactly what we need to secure the future of the North sea. It is a declining basin; its output will not change greatly as a result of the measures that the Government are proposing. On the other hand, unless urgent action is taken to secure a holistic transition for the North sea, it certainly will not have the investment and the future that so many of us want to see. We need to put that overall consideration alongside some people’s shorter-term concerns about what will happen to the oil and gas industry right this minute.

[Douglas Ross]

This has been an extremely crucial issue in the north-east of Scotland, particularly this week. Does the shadow Minister think it is a small, short-term problem that 42,000 highly skilled workers in that area could lose their jobs under Labour’s plans?

[Dr Whitehead]

They will not. I have tried to make it very clear, against what is, frankly, misinformed scaremongering by Government Members, that under Labour’s plans the North sea will, of course, continue to produce efficiently and effectively over a very long period of time. We know that the North sea is a very mature field and is in decline, and all authorities have said that the Government’s proposals would make no difference to that overall pattern.

We are looking at how to make sure that the North sea continues to produce well and efficiently the oil and gas we will need for the future in declining amounts, while at the same time transforming that economy to produce new forms of energy for the future and maintaining security of production. That will be the big task for the future Labour Government—I am pleased that the hon. Member for Moray (Douglas Ross) is envisaging what the new Labour Government will shortly have to do. The long-term task in the North sea is not to pump every last drop of oil and gas it contains, but to give it a new lease of life. New industries can come into the North sea alongside the infrastructure that already exists, making it a new energy powerhouse for the UK in the future.

[Douglas Ross]

I cannot let that go unchallenged. This letter from the Aberdeen and Grampian chamber of commerce to the Leader of the Opposition—the leader of the Labour party in the UK—says that

“if North Sea production is to cease prematurely—a certain outcome of this”

Labour

“policy—then our entire energy transition is undermined.”

This has massive consequences, and I have to say that the reaction of the shadow Minister is quite telling.

--- Later in debate ---

[Dr Whitehead]

The hon. Member rather gives himself away by the first sentence he read out:

“if North Sea production is to cease”.

North sea production will not cease—

[Douglas Ross]

It is

“a certain outcome of this policy”.

[Dr Whitehead]

North sea production will not cease over a long period of time, and Labour is committed to making sure that that production continues at the appropriate level for the maturity of the North sea basin. That is something that all sensible people understand to be the case, although it is unfortunate that certain Conservative Members pretend it is not the case for their own political purposes.