Offshore Petroleum Licensing Bill

Debate between Sammy Wilson and Alan Whitehead

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

[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.

[Sammy Wilson (East Antrim) (DUP)]

Will the hon. Gentleman give way?

[Dr Whitehead]

I will make some progress.

The Bill, as I have said, will achieve none of its stated aims, but it is far from consequence-free. The consequence is that it makes a mockery of our country’s commitments to take serious and responsible action on climate change. That is exactly the point the former right hon. Member for Kingswood, Chris Skidmore, made in his resignation letter to the Prime Minister. That point should not be a partisan point. Indeed, it has not been a partisan point, because a number of Members on all sides of the House, including a number of Conservative Members, can see the direction in which this short-sighted Prime Minister and Government are going, and want no part of it.

Some Members are trying to make changes to the Bill. As I have said, one has resigned, and a number are working hard to turn around the direction of this Government in resiling from our country’s climate change commitments—commitments they so recently signed up to, at the recent COP—on moving away from oil and gas. Regrettably, the Prime Minister and the Government, including this Minister, are not having any part of that. I am particularly disappointed that the Minister is not having any part of it, because of his long and honourable commitment to these matters on the international stage over such a long time.

The right hon. Member for Reading West (Sir Alok Sharma), the man who led this country’s climate negotiations at COP26 in Glasgow, has called the Bill “smoke and mirrors”, and a “distraction” that will

“reinforce the unfortunate perception of the UK’s rowing back from climate action”.—[Official Report, 22 January 2024; Vol. 744, c. 52.]

The right hon. Member for Maidenhead (Mrs May), the former Prime Minister—she signed this country’s net zero commitment into law and understood, as the current Prime Minister sadly does not, the value of cross-party consensus on the science of climate change—has said that she takes a different view from the Government on oil and gas licences, and that they will not provide for our energy security. Away from this Chamber, every credible independent expert has taken a dim view of the Bill. Lord Stern, one of the UK’s foremost experts on climate change, whose work has shaped how the world understands the costs of inaction, has called the Bill a “deeply damaging mistake”.

The reality is that the cost of living crisis we are in is to a large extent caused by our country’s deep exposure to the volatile international price of gas. The International Monetary Fund has said that this exposure meant the UK was harder hit by the crisis than any other western nation. Just today, the Energy and Climate Intelligence Unit has found that this country has spent an additional—in addition to normal spending—£75 billion on gas since the energy crisis began. Four extra days of gas supply by 2050 cannot possibly make the slightest bit of difference to this price. As I have highlighted, the Secretary of State herself conceded that point on the very day the Bill was announced.

The supposed arguments on energy security and jobs are similarly flimsy. The reality is that, as we have begun to discuss this afternoon, the North sea is an extremely mature and declining basin. Gas production will fall by 95% by 2050, even with new licences. The notion that this is a firm basis on which to build our energy security or protect jobs is clearly absurd. As I have outlined, we need a fair and balanced transition for North sea oil and gas workers that recognises the essential role they will continue to play in operating existing fields, which no one disputes will remain a vital part of our energy mix, and puts them at the heart of our clean energy future.

To safeguard the jobs, skills and livelihoods of the communities that have been the backbone of our energy system for decades, we need a Government with a proper industrial strategy to maximise the low-carbon economic potential of the North sea. Labour will create a national wealth fund to invest in low-carbon industries, it will launch a British jobs bonus to ensure that the supply chain benefits of renewable investment finally come to our shores, and it will create a new publicly owned energy company, GB Energy, headquartered in Scotland, to invest in home-grown clean energy and give us real energy independence. That is the answer that the country needs and that the communities who have served as the backbone of our energy systems for decades need. Political theatre, whether in Westminster or Holyrood, helps no one and does a disservice to the people looking to us for answers to the very real challenges we all face.

The final argument that the Government have made in favour of the Bill is that it is somehow, as we have begun to unwrap, a climate-positive piece of legislation. This argument rests on a series of partial and deliberately gameable tests, as we discussed in Committee, with skewed conditions that look only at a narrow band of emissions, ignoring methane for example; that look only at production emissions, ignoring the impact of actually burning the fuels we are extracting; and that look only at liquefied natural gas, ignoring the fact that the majority of our imports are pipeline-delivered. It includes no test whatsoever for oil, which makes up the majority of remaining reserves. That is why I have sympathy for the civil servants who wrote the Bill, who had to squeeze various things into it such as ignoring gas that was coming into pipeline, only having tests against liquefied gas and ignoring the methane emissions in the various versions of the arrangements in place for measuring emissions from production. I was very disappointed that the Minister gave no reaction at all this afternoon to that particular point on methane.

Energy Bill [Lords]

Debate between Sammy Wilson and Alan Whitehead

Report stage
Tuesday 5th September 2023 Commons Chamber

[Dr Whitehead]

I do not think it would be appropriate for me to indicate exactly which amendments from various Members we might or might not support, and it would take a great deal of time for me to do so, but the hon. Member will recall that we tabled an amendment on maximum economic recovery in Committee. I think she can take from that that, broadly speaking, we support the principle of “stop doing the bad things and start doing the good things”. Whether the detail of her new clause fits exactly with that picture is another matter, but I hope she can take some encouragement from that.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Gentleman accept that, while the Government may have set out the high-level ambitions and targets, they have failed to highlight the cost of this Bill to ordinary constituents? I think, for example, of the cost of bringing properties up to certain energy efficiency levels, the size of the hydrogen levy and who will pay it when it is introduced, the cost of sustainable aviation fuel to the aviation industry and the cost of flying—I could go on. That has not been spelled out, because there is a dishonesty here, and the burden will fall on ordinary people.

[Dr Whitehead]

It is not for me to defend how the Government have managed their arrangements as far as the costs of these measures are concerned, but I would say more generally that we have to cast this Bill in terms of how much it would cost us as consumers and others if we did not do these things over the next period. We need to consider the cost to people’s bills, people’s lives and people’s welfare if we simply stood aside and ignored doing the things that are necessary for decarbonisation. I can honestly say that in the longer term the overall cost of doing these things would be far more on the saving side for customers and the general public than the issues that are before us at the moment.

The Government have done a number of things in this Bill. I mentioned the measures on hydrogen, which I welcome in terms of meeting hon. Members’ concerns. We are also pleased to see that the Government have tabled amendments on other issues of concern to Members such as sustainable aviation fuel, and new clause 34 on liquid fuel.

Sustainable Energy Generation: Burning Trees

Debate between Sammy Wilson and Alan Whitehead

Tuesday 6th December 2022 Westminster Hall

[Dr Whitehead]

That was the case I was trying to pick apart. Is it right that we should ever burn anything for power? If we burn some things for power, what are the circumstances under which we burn them and what are the constraints we have to put on their burning? One of the issues is just how much we pay for that burning. If there are better uses for the subsidies we might put towards that burning, then we should undertake those instead. We need to be very mean in terms of the resource we put into subsidies so that we get the best outcome for those subsidies.

We cannot draw an overall conclusion today about the wide issue of what is waste, whether it is appropriate to burn it under any circumstances and how we manage that waste stream. Clearly, with whole forests—even if they are managed—the production of timber that goes into houses and buildings is a much better way of sequestering carbon from that timber than burning it. Waste material, on the other hand, does not have the same uses, although the hon. Member for North Devon mentioned the wood panelling industry, where there are certain uses for roundwood and other timber that can sequester carbon in a better way than burning it. However, we still have the issue of whether there is a role at all for biomass burning and waste burning in future.

We have also had a discussion about CCS, on the back of burning wood, residual material and waste. That applies to energy from waste just as it does to biomass use. Of course, the Climate Change Committee is quite keen on BECCS. The idea is that the whole process can become net negative as far as contributions to net zero are concerned, and we are producing a net negative contribution to the overall carbon balance, providing that CCS works well and sequesters as much carbon as it is supposed to.

[Sammy Wilson]

This is being put forward as another way of trying to deal with the unfortunate consequences of the CO₂ emissions from the Drax station. First, carbon capture and storage is expensive. Secondly, it would use about a third of the power that is produced to capture the gas.

[Dr Whitehead]

This underpins just how wide this debate really is and what we need to think about: for example, is CCS a reasonable way to go forward in sequestering emissions over the long period and how much is that going to cost overall in subsidies? My conclusion is that, yes, there is a role for biomass and for energy from waste, with the proper constraints and the proper circumstances under which we provide that power. It has a role, but not a large role. On the other hand, we need every source of low and lowish carbon energy that we can get at the moment, so we need it to make a contribution, but not a large one, to our overall power arrangements.

I look forward to the rather delayed biomass strategy that the Government are about to publish, which perhaps will give us a much better understanding of these issues as they combine together. I hope the Minister will give us a foretaste of what that biomass strategy will look like so that we can move this debate forward.