North Sea Oil and Gas Industry

Angus MacDonald Excerpts

Monday 27th October 2025 Commons Chamber

[Michael Shanks]

First, I welcome the right hon. Gentleman’s recognition—which we seldom hear from his party’s Front Benchers these days—that this is a transition, and that we want the economic opportunities of oil and gas and those of renewables. It is a delight to hear him say that; his Front Benchers should say so more often and talk up the phenomenal renewables industry, which the Conservatives should take a bit of credit for. Over the past 14 years, they built up so much of that industry across the country, but they have turned away from that now.

Turning to the licensing point, I cannot remember at what stage the right hon. Gentleman was in the Government, but of course, the previous Government said that they would not issue new licences. Later, they briefly did; then they recognised that that was the wrong policy—I think it was the Liz Truss years in which they changed around. A tiny fraction of the licences that have been issued have ever resulted in extraction from the North sea. We will manage existing licences for their lifespan, and will take a pragmatic view on the future of the North sea, which we will announce in the coming weeks, but the long-term future of the North sea does not lie in oil and gas; it lies in renewables, carbon capture and hydrogen.

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

Does the Minister really consider this a just transition? We have thousands of contractors arriving in the highlands. They stay in workers’ camps, and very few legacy houses are agreed. The companies are not employing local people, and this is all in an area with the greatest fuel poverty in Britain.

[Michael Shanks]

We know that winter has come when the hon. Gentleman turns up in his lovely knitted jumpers; it is a pleasure to see them back again. He and I have had a number of conversations on this issue, and I recognise how seriously he takes it. There have been some good moves recently to look at the legacy left behind, particularly housing. This is about building housing that suits the workforce, but can be left behind for communities afterwards. We need a lot of work in partnership with the Scottish Government, who have responsibility for housing policy, to make sure that the opportunities are taken forward. The Minister for energy consumers, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), will say much more in due course about our plan for warm homes. That will result in significant spending in Scotland, but that will be in the hands of the Scottish Government, who have cut this budget time and again. I hope that they will change their ways, and will help the hon. Gentleman’s constituents to have warmer homes this winter.