(2 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Yes, the right hon. Member is absolutely right. The public should be on board with any development that is going on anywhere concerned with anything. That is a starting point as far as the developments are concerned. It is worth reflecting on the Government’s onshore wind policy. Despite the fact that the public in many areas of England and Wales were in favour of hosting onshore wind, the Government put a moratorium on it. We do not want to go in the other direction as far as public support and renewables are concerned.
I have indulged myself by taking interventions and have gone a little over my time. I hope that Members will understand, however, that my comments are founded on the imperative of solar for the future. Solar needs public support, and a sensible approach must be taken to its deployment if it is to take its desired place in our future renewable firmament.
Minister, could you sit down at 3.58 pm, so that our mover can wind up after you have wound up?
(5 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I congratulate the authors of the Select Committee’s excellent and wide-ranging report, and everyone who took part in the Committee’s proceedings. The report goes well beyond some previous considerations of the future of the North sea by putting it in the context of a number of other issues relating to where we stand on the exploitation of North sea oil and gas and what the future looks like.
As the report states, the North sea is a very mature basin. Hon. Members mentioned that its exploited resources total some 43 billion barrels, and estimates of what is left vary from about 8 billion to 10 billion barrels. Some of the discoveries to the west of Shetland notwithstanding, it is extremely likely that there will be no more Brents and that we will see the exploitation of smaller pools, which are more difficult to exploit. Clearly, there will be great emphasis on the efficiency of exploitation. The report emphasises the extent to which the oil and gas industry has increased its efficiency; it needs to continue to do so for that exploitation to be effective.
The report also goes into considerable detail about not just the future alternative paths, but what we might call the future imperative paths for the North sea as a mature basin. My hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) mentioned that the oil industry has come through a challenging period—it is in a better position than it has been in for quite a while, given its efficiency achievements and what is happening with the exploitation of future fields—but he drew attention to the need to look at a future industry for decommissioning in the context of the climate change imperative. I was pleased to see that the report did not duck climate change; quite a few of its passages actually centred on the challenges that the fight to get us to a low-carbon economy will present for the oil and gas industry, and on how the industry can take part in that process rather than opposing it.
The hon. Member for Aberdeen South (Ross Thomson) is right about the need to consider how decommissioning can be turned from a liability into an opportunity and, indeed, become a substantial part of the industry. We need only reflect on what is at stake: 250 fixed installations, 250 subsea platforms, 10,000 km of pipeline and 5,000 oil wells need to be decommissioned. The potential decommissioning industry is huge, not just in its own right but in terms of the expertise that already exists, which could be added to. The UK could be a world leader in decommissioning, exporting its expertise and methods. I commend the report’s attention to the detail of decommissioning and how it can be undertaken to the advantage of jobs, skills and exports for UK plc.
We must recognise that the imperative of climate change will cause us to take a considerable number of decisions about the oil and gas industry. Indeed, the report identifies a number of those decisions, one of which is the question of what we do about carbon capture, use and storage. That is not just a possible extension of activity and industry for the North sea as fields are depleted—indeed, those fields are enormous potential repositories for carbon dioxide—but can be used to the benefit of the North sea fields in their own right.
I would link that to the decommissioning efforts that are under way, because the next phase will be about exploiting smaller fields. That needs to be done on the back of existing infrastructure, which arguably should not be decommissioned but rather kept in place, so that those fields can be exploited without the infrastructure having to be completely replaced. If we decommissioned all that infrastructure when a lot of it could be used as the carrying capacity for carbon capture and storage, we may well live to regret it.
We need an understanding about future roles for the North sea. We should not only think about potentially depleted fields that could be repositories for carbon capture and storage, but look at practical considerations in respect of how the capture, transport and sequestration chain can be completed, possibly by using installations that are already there. The same applies to the future North sea wind industry. As the hon. Member for Waveney (Peter Aldous) said, there is a close link between the skills and practical measures involved in developing offshore wind energy and maintaining the structure and infrastructure of the North sea oil and gas industry. Those two industries should work in tandem, rather than separately. As is mentioned in the report, that is important for satisfactory developments in the North sea and for the transfer of skills to the new industries. The skills, facilities and techniques that are already there in the North sea can greatly aid us in creating world-beating offshore wind energy installations and similar technologies, and ensure that the North sea plays its part in the transition to the attainment of a low-carbon energy economy.
In conclusion, the report marks an important milestone. It shows where we need to go next with the North sea oil and gas industry, and its recommendations and suggestions will stand the test of time. In the immediate future, I commend the report’s suggestion that we need to get on with a sector deal for the oil and gas industry. I do not need to say more about that, because I am sure the Minister will update us about it in his response. I emphasise my support for the need to get that deal over the line. In addition to milestones for the future, we have ambitions for the immediate time ahead to ensure that the oil and gas industry continues to be in a better position than it was in before and that it has the wherewithal to make its mark over the decades to come.
Minister, please could you leave two minutes at the end for Mr Wishart to wrap up?
(6 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I surely do. On the basis of what the Committee on Climate Change says, the current ECO commitment falls way short of the levels of treatment we need if we are to get anywhere near our 2035 targets. Even the £1.8 billion figure that has been cited will not cover a complete series of treatments for houses in the UK. I suggest that making our treatments much more efficient—by doing them on an area basis, for example—would allow us to get much closer to our target for the same money. We can probably agree that £1.8 billion will be the sort of money that will get us there, but an efficient approach could get us so much further, which I would completely support.
As the hon. Members for Eddisbury and for Wells and my hon. Friend the Member for Birmingham, Selly Oak emphasised, enveloping energy-efficient homes area by area needs to be funded from the infrastructure budget. It may not look like big boys’ toys, but it is absolutely an infrastructure project and ought to be treated as such by the Government. That would have a number of advantages for costs of capital, borrowing and all the rest of it; as the Minister says, we could make even more houses efficient for the same investment.
I appreciate that I have gone on rather longer than I intended, but let me briefly say a few words about the speeches of my hon. Friend the Member for Redcar (Anna Turley) and the hon. Member for Ochil and South Perthshire (Luke Graham). They both drew attention to the role that CCS can play, as did the hon. Member for Wells—or rather for HEEPS. I thoroughly endorse that line of thinking on CCS, but I must point out that as far as the clean growth strategy is concerned, £100 million will not get us anywhere near our CCS target, just as our ECO commitment will not get us anywhere near our energy efficiency target.
I congratulate Teesside on its comprehensive approach, in which my hon. Friend the Member for Redcar has been centrally involved. Teesside could be an absolute exemplar for the rest of the country in its combination of intensive industry with CCS and its by-products. That is very important for realisation of the clean growth strategy and we need to incorporate it in all our future clean growth plans.
I congratulate all hon. Members on their contributions to the debate. They all faced in exactly the same direction, acknowledging the importance of energy efficiency in homes, for a variety of reasons including climate change and fuel poverty, and the prominence that we need to give it in our policy debates. If this afternoon’s debate has hastened that process, we will have done a very good job between us.
I have let speeches go on longer than is conventional because we have had plenty of time. We have had two mammoth speeches from the SNP and Labour Front Benches. I know the Minister could speak for 55 minutes if she wanted to, but if she felt that she could just match them at 25 minutes, I am sure we would all appreciate it.
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Before concluding her remarks, will the Minister clarify what she means by £1 billion being left in the levy control framework in 2021 for CCS? As far as I understand from the material recently published by DECC on the passage of the levy control framework, £1 billion will be left in the framework only if the cumulative consequences of previous allocations of levy control framework-based technology are not taken into account.
Before the Minister answers that question, I ask her to leave a couple of minutes at the end for the Chair of the Committee.