Offshore Petroleum Licensing Bill

Alex Sobel Excerpts

2nd reading
Monday 22nd January 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The proposed legislation before us is an outrage, and I am pleased that we have had the opportunity today to discuss in detail what it means. It has been a relatively good-natured debate, but it has shown very clearly where the political choices are, and I find the political choices of the Conservatives unacceptable.

New licences for new oil and gas fields in the North sea are in direct conflict with our national and international net zero commitments. We must get away from our dependence on fossil fuels, not extend it. At COP28 the Government signed an international agreement to phase out fossil fuels, but we are doing the opposite in this country. It is just not acceptable for us to do one thing abroad and another at home. As has already been said so many times this afternoon, this is losing us our reputation for good leadership, and losing any credibility that the Government could have at home or abroad.

The Government’s claim that the Bill ensures our energy security is complete fiction. Recent analysis from the Energy and Climate Intelligence Unit found that oil from new licences sent to UK refineries would account for less than 1% of fuels used in the UK in 2030. The Bill would make little or no difference to UK energy security, and the Secretary of State herself admits that it would do little to cut bills. Furthermore, on the basis of past records, new licences issued since 2010 have produced only 16 days of extra gas supplies. Between now and 2050, new licences are expected to provide an average of only four days of gas per annum. Is it really worth it to lose our reputation, our commitments and our path to net zero for that? The vast majority of this new oil and gas production would not stay in the UK; it would be sold on global markets for consumption abroad. No government should want a repeat of the energy crisis of last year, which was brought on by the crisis in global fossil fuel supplies and soaring prices on the global oil and gas market. Only by moving away from fossil fuels can it be guaranteed that such a crisis will not be repeated.

However, this legislation is not just stupid and unnecessary, but dangerous. It breaks down a decade-long cross-party consensus that every Government must be seriously committed to cutting greenhouse gas emissions and must provide strong, unflinching leadership to help people, organisations and businesses along the road to a successful energy transition. As we have heard today, there is a fair amount of consensus, so why should it be broken? That is really not understandable. Undermining this consensus is hugely irresponsible and sends entirely the wrong signals to the international community. The latest COP28 negotiations have shown how rocky the path to net zero is and how important the leadership of the developed nations remains. I was at COP28, and it is really sad to see how that leadership has been lost and how many nations look at us and shake their heads. They cannot understand what has happened to the UK in the last year or two.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

It is not just at COP28, the climate COP, that there is an issue. I was at Montreal at the nature COP, and we were in the vanguard of agreeing that 30% of waters should be protected for nature. These additional drilling rigs cause havoc in our inland waters, but 15 % of new licences were declared in marine protected areas, so we are seeing a nature crisis being caused by this as well as a climate crisis.

[Wera Hobhouse]

Yes, indeed. Many organisations that campaign to protect nature and the oceans have written to me—and probably to many other Members of Parliament—about how extremely dangerous and damaging this is to marine wildlife.

The UK is in a strong position geographically to cover its future energy needs from renewables and from cutting energy consumption. The Minister well knows my position on this: diverse, home-grown renewable energy and a significant home insulation programme are key to the solution. The energy efficiency of our homes is among the worst in Europe, and yes, if we are talking about jobs, we are lacking so many of the jobs that we need in the retrofitting and upgrading sector. We need a new workforce in the new technology for the net zero future of our UK economy. That is not looking back at past fuels. They have powered the world, yes, but we need to transition and we cannot keep on with business as usual. That is the problem and the opportunity. It is deplorable that the Government have finished embracing this new future and broken the consensus that we had across the House.

Where is the legislation to address all that? Failed project after failed project alongside acute underfunding means that people continue to live in cold homes with sky-high energy bills, so where is the legislation to revolutionise our home retrofitting agenda? The problem needs long-term policy and funding commitments rather than the stop and start of this Government. While offshore wind is no doubt a success story, we must move faster. Onshore wind development has been slow, and solar has been particularly off-track. In fact, we are going backwards. The proportion of renewable projects that are being delayed is on the rise.

Last year the Government’s predictable failure to contract new offshore wind lost 5 GW of renewable energy and the opportunity to save consumers £2 billion a year. Renewables developers still face a planning system that is stacked against onshore wind, and community energy providers still face enormous start-up costs. Rather than a petroleum Bill, why are we not debating a marine energy Bill today to incentivise investment in the various new technologies in marine energy and facilitate the fast roll-out of installations? The Government are wasting time and money on the fuels of the past. Instead, they should champion UK technology and innovation.

So, why this Bill? My suspicion is that it is an election year Bill to drive division and fuel the culture wars. For too long, working people have been made to worry that the green energy transition is a punishment for them and that it will cost them prosperity, livelihoods and the way of life that they are used to. But there are countries who have successfully turned the negative narrative into a prospect of hope and major opportunities. The US Inflation Reduction Act and the EU’s green industrial plan will together see over $600 billion of green investment creating new and exciting jobs and careers. Even Canada, an economy smaller than ours, has announced a package that offers nearly £50 billion-worth of tax credits for green technologies. Green investment will be worth a potential £1 trillion by 2030. Uncertainty over this Government’s commitment to reach net zero means that investors are looking the other way.

Oil and gas are energy sources of the past. Putting our political future towards them only amplifies how seriously out of touch and out of ideas this current Government are. The Bill is misleading and counterproductive. It flies in the face of our net zero commitments and will do nothing to ensure our energy security. Indeed, it will do the opposite. We Liberal Democrats will support the Labour reasoned amendment and oppose this Government Bill, and I call on all colleagues across the House with an ounce of honesty and integrity to do the same.