Gulf of Mexico Oil Spill

Lord Hunt of Kings Heath Excerpts

Monday 14th June 2010 Lords Chamber

[Lord Hunt of Kings Heath]

My Lords, I start by thanking the Minister for giving advance notice of the Statement and for keeping the House informed of developments. I join him in expressing sorrow for the 11 people who died in the original accident, for those who are injured and for the many communities affected. It is a reminder of the dangers that come with life in the oil and gas industry, as we saw in the North Sea last year and, as he said, in the Piper Alpha tragedy so many years ago. We owe a great debt of gratitude to those who work in such a crucial industry. I also join him in expressing concern about the environmental impacts of the spill, which cannot be underestimated. The efforts being made to try to minimise the damage are to be applauded and supported. I agree that the key priority must be to stop the environmental damage. I am glad that this country has offered help to the US authorities. Has that help been accepted? Does the Minister acknowledge that his department’s international energy division has enormous experience and expertise to offer in that regard?

I wish to ask the Minister more specific questions arising from the Statement. First, given the scale of the spill and its consequences, there can be no question that those responsible must be held accountable. However, that accountability should be judged and discharged fairly. I have noted his comments on the position of BP. Does he agree with me that all the companies involved—Transocean, Halliburton, BP and others—should be subject to investigation, and that finger-pointing at BP alone is unhelpful? I echo his remarks about BP’s importance and strength as an international company.

Secondly, does the Minister agree with me that any process of learning lessons needs to look not just at the actions of private companies but at those of the United States Minerals Management Service and at the general level of regulatory standards for deep- water drilling in place in the US and around the world? Will he comment on his specific understanding of the regulatory standards in place in the Gulf of Mexico, and whether they were relaxed in any way?

Thirdly, in the review that he has announced of the UK’s licensing regime, including that for drilling in deep waters such as west of Shetland, will he confirm that not only will the lessons of the incident in the Gulf of Mexico be fully learnt but that our own regulatory and licensing capacity will be enhanced, not diminished? Is it not ironic that we learnt only over the weekend of the coalition’s review of health and safety law? It is very easy to sneer at and criticise the Health and Safety Executive, but I am proud of its achievements since the passage of the Health and Safety at Work Act. Will the Minister assure me that this review will not undermine the effectiveness of the Health and Safety Executive in the North Sea? I pay tribute to the work of the Minister’s department, based in Aberdeen, which licenses oil and gas in the UK continental shelf. I had the privilege of visiting the department’s office in Aberdeen on a number of occasions and was impressed by the commitment, dedication and hard work of its staff. Will he assure the House that the requirement to ensure an effective licensing regime in the North Sea will be fully taken into account in any budgetary cuts envisaged in his department?

Fourthly, does the Minister agree with me that the central lesson of what happened in the Gulf is that the world cannot simply rely on digging deeper and deeper for oil? Following the Prime Minister’s call with President Obama, I was disappointed that there was not a clearer message from both sides of the Atlantic on the need to make the transition to a post-oil economy. In that context, does the Minister agree with me that the best thing that could emerge from this tragedy is a renewed push towards low-carbon energy, with Europe moving to 30 per cent emissions reductions, America passing a climate and energy Bill and the securing of an international treaty at Cancun in December?

The Statement emphasises the need to expand low-carbon technologies. Does the Minister agree with me that we need to play our part by maintaining, not cutting, the industrial policy support for the low-carbon transition, including the money for Sheffield Forgemasters, ports for offshore wind and support for tidal and wave power? Why are the proposed loans to a number of key companies in that sector now in jeopardy? Will he commit to report further to this House on the important matters contained in the Statement?