Oil and Gas Industry

Lord Moynihan Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

I agree with the points made by the noble Lord. I congratulate the sector on its response to the twin crises of the pandemic and the lower oil price. The Government launched an unprecedented Covid-19 financial package because we want to support the sector, which sustains more than 270,000 jobs in the UK. As I said earlier, we are committed to a proper North Sea transition deal.

[Lord Moynihan (Con)]

My Lords, I declare my interests as set out in the register. As oil and gas supply and service companies move increasingly to offshore or renewable business, will the Minister confirm that the energy White Paper will cover the error whereby the energy transition discussions on renewable costs almost always completely ignore the system costs of coping with periods of intermittently zero or limited electron production?

[Lord Callanan (Con) [V]]

My noble friend makes a good point, as always. The White Paper will indeed address the characteristics of the electricity system as we prepare for a net-zero future, balancing the increased deployment of renewables with more flexibility and low-carbon sources of electricity that are available when the wind does not blow or the sun does not shine. Indeed, our system has already demonstrated that it can operate with a high percentage of renewable generation: 47% of electricity in the first quarter of this year was renewable, and, adding in nuclear, we had more than 60% from low-carbon generation.