Oil and Gas

Caroline Nokes Excerpts

Tuesday 24th March 2026 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I inform the House that the Speaker has selected the amendment tabled in the name of the Prime Minister.

I call the shadow Secretary of State for Energy and Net Zero.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. I alert Members to the fact that there will be a four-minute time limit on speeches, which of course does not apply to the Front Benchers.

I call the Liberal Democrat spokesperson.

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[Grahame Morris (Easington) (Lab)]

I welcome this debate. As we have heard, oil and gas are likely to remain part of our energy mix for years to come, but recent global instability underscores a fundamental point: true energy security comes from reliable domestic and renewable sources, not from continued exposure to volatile international fossil fuel markets. Even if production were to increase, it would not shield the UK from global price fluctuations. Oil and gas extracted from the North sea is sold on international markets at global prices. While that may increase profits for fossil fuel companies—no doubt welcomed by the Opposition—it does little to reduce bills for our constituents. Moreover, new licences do not translate into immediate supply, and it can take many years, often well over a decade, from licensing to production. In reality, UK oil and gas production represents only a small share of the global market, and even a significant increase in output would not meaningfully influence global prices or reduce domestic energy bills.

Private companies operating in the North sea are under no obligation to prioritise UK consumers—the Norwegian example is interesting—so I return to the central question of how additional North sea production will reduce bills today. The only way that could plausibly happen would be through significant market interventions, such as restricting exports or imposing below-market price caps on domestically produced energy. Some Labour Members may agree with that, but I am not sure Opposition Members would. Such measures would represent a profound shift in policy, so if that is what the Opposition are proposing, they should be clear about it. If not, they should be honest with the public: expanding North sea oil extraction is unlikely to have a meaningful impact on energy bills in the short, medium, or even long term.

There is, however, an alternative that is not tied to global fossil fuel markets: renewable energy. I will take solar power as an example, but geothermal energy also has great potential. I recognise the criticism raised about the use of critical minerals, including in the remarks by the right hon. Member for East Surrey (Claire Coutinho), as well as concerns about reliance on the supply chain in China and labour standards in global supply chains. Those are legitimate issues, but there is also a significant opportunity for domestic innovation and manufacturing.

In my constituency, Power Roll is pioneering the next generation of solar technology. Its lightweight, flexible solar films use microgroove structures, and it does not rely on rare earth minerals. It has the potential for low-cost, scalable production here in the United Kingdom. The Government have already engaged with this technology, but it is now time to go further and support commercialisation, scale up production and invest in the infrastructure needed to bring British-made solar to market at scale.

By diversifying our energy mix and reducing reliance on volatile international fossil fuel markets, we can strengthen energy security and reduce exposure to external shocks. I say to the Government that this is the time to back British business, back innovation, and back domestic manufacturing, because that is how we will deliver energy security, economic growth, jobs—

[Madam Deputy Speaker (Caroline Nokes)]

Order.

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[Graham Leadbitter]

No, I will not give way again because I do not have much time.

There are many reasons why we need to support oil and gas, not least protecting the workforce and not losing the skills. There are also numerous other areas where the Government are not making decisions quickly enough. On the transmission network’s use of system charges, Government policy has taken 18 to 20 months to come through, and it will be several more months before it is in place. That will be after the start of allocation round 8, which is being accelerated, and many companies in the North sea are saying that they will hold on and wait for AR9 before making an investment decision, because they want certainty. That lack of certainty, pace and pragmatism is preventing those jobs from being created and preventing a just transition.

I can apply the same point to Ardersier, which is in my constituency, and the proposal by a Chinese company, Ming Yang, which wants to invest there. I understand that the Government have reasons and things that they need to consider in this matter, but it has been on their desk for 18 months. A decision is needed to either move on to other investors or decide that there is a risk, so that we can mitigate the risk, let them get on with it, create supply chain jobs and have serious, high-skilled, high-paid jobs that will provide a just transition and a serious opportunity for North sea workers. That decision needs to be made sooner rather than later. We experienced an excessive delay in the run-up to decisions on carbon capture, usage and storage; it took forever to get there, and jobs have been lost because of that lost time.

Let me turn very quickly to consumer pricing. The Government have been waxing lyrical about price gouging by energy companies at the moment. The Government and previous Governments have been responsible for state-sponsored price gouging in the energy market, with the highest prices for electricity in Scotland. With that, I urge Members to—

[Madam Deputy Speaker (Caroline Nokes)]

Order.

There was a particularly unedifying exchange between Members in which the use of “you” and “your” was very liberal indeed; I assume that it was addressed directly to me. Can we all try to do a little better? While I am on my feet, I will say that after the next speaker, the time limit will have to be reduced to three minutes in order to get all Members in.