North Sea Oil and Gas

Caroline Lucas Excerpts

Wednesday 9th February 2022 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

(Urgent Question): To ask the Secretary of State for Department for Business, Energy and Industrial Strategy if he will make a statement on reports that six North sea oil and gas fields are due to be given the green light this year.

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

There will continue to be ongoing demand for oil and gas over the coming years. It is a clear choice between a transition that secures our energy, protects jobs and leads to innovation in new technologies like carbon capture and hydrogen, and an extinction for our energy sector, as I think the hon. Lady proposes. Flicking a switch and turning off our domestic source of gas overnight would put energy security, British jobs and industries at risk, and we would be even more dependent on foreign imports. The way we produce oil and gas is cleaner than in many jurisdictions, so it would be illogical to import them at further expense to Britain and our planet.

The fields referred to in these reports are already licensed, some dating back to as early as 1970, and are now going through the usual regulatory processes. All proposals are subject to a rigorous scrutiny process prior to consent, as opposed to licensing, by our expert regulators, including an environmental impact assessment and a public consultation. No decisions have been taken by the regulators, so it would be inappropriate to comment further on that process. However, to be clear, continued support for Britain’s oil and gas sector is not just compatible with our net zero goals; it is essential if we are to meet the ambitious targets we set for ourselves while protecting jobs and livelihoods.

As announced last year, and forming part of the North sea transition deal, we will introduce a climate compatibility checkpoint for any new licences to ensure that any future licensing rounds remain consistent with our goals. Meanwhile, we continue to make progress on developing new nuclear, which I think the hon. Lady also opposes, and renewables that will power our future. Today, we have announced that we are ramping up our options for our flagship renewable scheme, contracts for difference, establishing new industries, boosting investment and creating jobs in our former industrial heartlands.

[Caroline Lucas]

That was a frankly extraordinary statement by the Minister. The idea that the solution to an energy crisis caused by high gas prices is to increase our reliance on gas seems pretty risible. The UK still holds the COP presidency and is, of course, bound by the Glasgow climate pact, so why is he ignoring the international agreement that

“limiting global warming to 1.5 °C requires rapid, deep and sustained reductions in global greenhouse gas emissions”

and giving the green light to the extraction of more oil and gas?

Will the Minister confirm whether he and his Government are actually still committed to net zero by 2050 and the interim targets? Frankly, judging by their actions, that seems to be in question.

Why is the Minister not listening to experts such as the International Energy Agency, which could not have been more explicit? Perhaps he has not read its “Net Zero by 2050” report, but if he had, he would know that 2021 is the cut-off point for the development of any new oil and gas fields if we want to hit internationally agreed climate goals. Does the Minister acknowledge that the proposals go against the spirit, if not the letter, of that warning?

Is the Minister aware that renewables are already cost competitive, with wind and solar beating new gas generation hands down? Let us not have any more of this guff about more transition fuels being needed.

Will the Minister explain to the House and to our constituents why the Government are not investing in real energy security for people? Why not roll out an ambitious street-by-street energy efficiency and insulation programme, instead of pretending that we need more oil and gas to keep our homes warm and to bring people’s bills down?

Why are Government decisions about new licences being taken behind closed doors? MPs only hear about them through media reports.

When does the Minister plan to update the Oil and Gas Authority’s usual processes and the environmental impact assessment framework to minimise the economic recovery of North sea reserves? When will he get rid of the outdated MER duty that calls on the Government to maximise economic recovery? He needs to be guided by the climate science and, quite frankly, he is not.

Finally, will the Minister agree that any Government recommendation to the OGA that undermines the House of Commons’ formal declaration of a climate emergency, as well as our international climate obligations, should at the very least be subject to a parliamentary vote?

[Greg Hands]

Let me first say that it is a pleasure to take a question from the hon. Lady. I have been in this role for four months, and I think I am right in saying that this is the first time that she has actually asked me a question about energy and climate change, so I am delighted to see her here today.

We are not increasing our dependence on gas. We are clear that we are increasing the production of renewables, which is actually part of the solution for the medium to long term—and even the short term. We are not resting on our laurels about having the world’s largest offshore wind sector; we are quadrupling that capacity over the decade. What we are not increasing is our dependence on imported foreign gas. The point of this is that our domestic production emits far less carbon and is obviously better for our energy security.

The hon. Lady says we are ignoring COP, but it is quite the opposite. The COP President continues to be hard at work for the rest of the year. Of course, we remain adherent to our net zero strategy, which I launched at this Dispatch Box back in October.

Renewables are cost-effective—the hon. Lady is quite right. They have become a lot more cost-effective thanks to the actions taken by this Government on contracts for difference and our hard work over 12 years to increase the percentage of our electricity generation coming from renewables from 7% to 43%.

The hon. Lady talks about decisions behind closed doors, but these are not decisions. These licences have already been licensed, and further regulatory processes will continue throughout the year.

The hon. Lady asked whether we are guided by the climate science. Of course we are. We are leading in climate science.

Finally, it is now 33 years since the Green party’s best ever electoral performance in the UK. I think it scored 12% in the 1989 election, but it has not come close since. Why is that? At that time, it was saying that it was impossible to take action on emissions while still growing the economy. This country and the Conservative party has proven the Green party comprehensively wrong. We have grown the economy by 78% while cutting emissions by 44%, delivering for the people of this country both on the economy and on the environment.