Rosebank and Jackdaw Oilfields

Debate between Bradley Thomas and Michael Shanks

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

I thank my hon. Friend for the tone of his question. This industry has many thousands of extremely talented, skilled and experienced workers, whom I have had the great privilege of meeting over the past seven months in this role. We have to ensure that we build a resilient industry for many decades to come.

Some of that will be the oil and gas that is already licensed and consented, and any other projects that come through the process, but it will also be about building the industry that comes next. It would be irresponsible of any Government to focus on one at the exclusion of the other.

The reality is that the North sea is a super-mature basin. A transition is already under way, and it is incumbent on us—and on any responsible Government—to build the industry that comes next while continuing to support the oil and gas industry that we have today.

[Bradley Thomas (Bromsgrove) (Con)]

Does the Minister agree that there is a double standard in the Government backing Heathrow expansion to drive economic growth, but not providing the maximum possible support for our domestic oil and gas industry?

[Michael Shanks]

The Chancellor was very clear in her speech that there is no conflict between our net zero commitments and the industrialisation that we want to see. Economic growth projects such as the runway at Heathrow will be important but, as the Chancellor said, they will have to be in line with our climate obligations.

Importantly, as my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) said, this is not an either/or. Oil and gas will continue to play an important role in our economy for many years to come, but we have to plan for what comes next and take cognisance of our legal and climate obligations.

Biomass Generation

Debate between Bradley Thomas and Michael Shanks

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

My hon. Friend makes an incredibly important point. The sustainability criteria are important, but he is right that making sure they are met is important too. This is a contract for difference agreement and we will work with Ofgem to work out exactly what its role is as the regulator, but to go above what has been in place before, we have announced that an independent adviser will work with my Department, the Low Carbon Contracts Company and Ofgem to make sure that the latest science and the latest awareness on different elements of biomass are key in our decision making, and that there is a real audit trail in place. The other really important thing is that there is now no room whatsoever for Drax not to comply with the sustainability criteria. Its compliance must be 100%, and there will not be a penny of subsidy for anything that is not sustainable. That is important, and the audit trail will be part of that work.

[Bradley Thomas (Bromsgrove) (Con)]

Will the Minister agree to publish the full, comprehensive analysis of the cost of providing support to Drax versus the alternatives?

[Michael Shanks]

Transparency is important, so I am very happy to publish what we can. Elements of that analysis, such as details of how Drax runs its power station, will be commercially sensitive, so I will have to look at exactly what can be published. I know that NESO has today published a summary of its advice, to give clarity on its view on the security of supply questions. I am happy to take the hon. Gentleman’s point away and write to him.

Oral Answers to Questions

Debate between Bradley Thomas and Michael Shanks

Tuesday 4th February 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

My hon. Friend makes a very important point. Although we are clearly on the sprint to deliver clean power by 2030, demand for electricity in this country is likely to double by 2050. Our reforms around connection to the grid are important —they will make sure that there is space for demand projects, such as data centres, to connect—but so is building the grid for the future, so that we have capacity in our network to deliver on our growth aspirations.

[Bradley Thomas (Bromsgrove) (Con)]

T5. Can the Minister assure the House that as the Government push to decarbonise the electricity grid, the vast majority of new electricity generation and transmission infrastructure will be built in the UK, not imported from foreign countries, including China?