Oil and Gas Authority: Remit

Baroness Altmann Excerpts

Thursday 2nd December 2021 Lords Chamber

[Lord Callanan (Con)]

As the noble Baroness knows, we have some of the most ambitious climate targets of any major economy in the western world and we are committed to net zero; indeed, it is a legal obligation. However, we will still need declining amounts of oil and gas, and the choice we face is whether we wish to use that produced domestically or to import it. In every scenario set out by the reductions, we will still have a requirement for petroleum products.

[Baroness Altmann (Con)]

I congratulate the Government on their ambitious climate targets, but can my noble friend tell the House what proportion of the oil that will be extracted from the Cambo development is likely to be exported under current scenarios, as there seems to be little domestic demand for the heavy crude oil that Cambo and other future oilfields will produce? This seems more about exporting than about domestic energy security, and, in that context, some extra taxation on production would anticipate some of the future taxpayer costs that might arise if these oilfields end up being unable to export in a future scenario of other countries having to reduce their oil imports.

[Lord Callanan (Con)]

No decision has yet been made regarding the proposed Cambo field. The export market for oil and gas produced from Cambo is purely a commercial matter dictated by the market, the quality of oil and the different refinery capabilities. But, as I said, even with continued development, we expect the UK to remain a net importer of both oil and gas throughout the transition period when following the Climate Change Committee’s balanced net-zero pathway.