North Sea Oil and Gas

Douglas Lumsden Excerpts
Wednesday 24th June 2026

(1 month, 1 week ago)

Westminster Hall
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Bradley Thomas Portrait Bradley Thomas
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I am pleased that the hon. Gentleman supports continued activity in the North sea, and I will address that point later on in my remarks.

Increasing reliance on imports and blaming unstable global markets regardless of the product, when we have the ability to produce it domestically and help stabilise the market, is not just reckless; it is madness. That is not to mention the fact that offshoring our carbon emissions, such as importing from the US, does not help the planet; it simply allows the UK to portray lower emissions in national statistics, while facilitating the generation of three times higher emissions via this method of supply. We should be supporting any domestic production that reduces product cost, generates jobs and has the potential to add billions more into our economy.

It is no secret that households across the country are struggling with their energy bills. The UK currently has the highest industrial energy prices among developed nations and the second highest domestic electricity prices in the developed world. That stark fact is evident to anyone paying energy bills, and it is about to get worse. The Ofgem cap for July to September has risen by 13%, reaching £1,862, which is £294 more than when the Government came into office in July 2024. I am not sure where the Energy Secretary’s promise to decrease energy bills by £300 has gone, but it looks like he actually meant an increase. There is nothing complicated about these figures. The cost of energy is rising, and households and businesses across the country are feeling the impact.

A recent poll found that, although 60% of people across the UK support reducing emissions, 68% of those supporters believe that reducing energy bills should be the first priority. That result was echoed in another poll, which found that 71% of people who support reducing emissions do so on the condition that it does not increase their energy bills. The undeniable fact is that these inflexible targets are driving up energy bills.

As a democratically elected entity, the Government’s first priority should be to represent the nation and act in its best interests, but the public are being hung out to dry. It is not only the bill payers paying the brunt; thousands of oil and gas workers are also on the chopping block. Giving rising unemployment, it would be reasonable to presume that the Government would abandon any policy that compounds the issue further, but of course that is far too sensible a suggestion. They appear to prefer to allow 1,000 jobs a month to be lost from the oil and gas sector in places that rely on the industry such as Aberdeen, rather than admit they are on the wrong path.

I take this opportunity to welcome my hon. Friend the Member for Aberdeen South (Douglas Lumsden) to his place. He emphatically won a by-election last week with almost 50% of the vote, which is a vindication of the fact that the public—particularly workers in places dependent on the oil and gas industry for employment—reject the pace and scale of the Government’s net zero agenda.

Douglas Lumsden Portrait Douglas Lumsden (Aberdeen South) (Con)
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Does my hon. Friend agree that the clear message that the people of Aberdeen sent last week was that they support the oil and gas sector and the jobs that come with it, and that it is much better that we produce oil and gas ourselves? It is much better for our jobs, our economy and the environment if we produce more in this country, rather than relying on imports.

Bradley Thomas Portrait Bradley Thomas
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I thank my hon. Friend for his first spoken contribution as an elected Member. He is already demonstrating his resoundingly strong voice on behalf of the people of Aberdeen South, many of whom are employed in the industry and terrified about what the scale and pace of what the Government are doing represent for their futures.

It appears that the Government would rather ignore warnings that their refusal to replace the energy profits levy is putting 200,000 jobs at growing risk than delay their ideology for even a few years. They would even rather ignore the Scottish Affairs Committee’s warnings that clean energy jobs are not keeping pace with oil and gas job losses, rather than give up on this net zero legacy.

I have one question for the Government: what do they say to the thousands of workers who risk losing their jobs or have already lost them? The Government will claim that clean energy is providing 100,000 jobs, but have they shared the detail on the quality of those jobs and the pay cuts that the workers are having to take? Why has that not happened? Because it means that the Government would have to take responsibility for a mess that they are compounding.

The bottom line is this: if we want to support those workers, we must support the North sea oil and gas industry. The ban on new oil and gas licences is leaving at least 2.9 billion barrels of oil in the ground—billions in monetary value that could be added to our economy, thousands of jobs that could be secured and millions of homes powered.

I predict what the rebuttal point will be: it does not matter how many barrels come from the North sea because it is all sold on an international market and therefore will have no impact on our energy prices, which are dictated by global pricing.

--- Later in debate ---
Graham Leadbitter Portrait Graham Leadbitter
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The SNP backs new licences with the normal environmental assessments and everything that goes with that, which, the hon. Lady will understand, is part of the regulatory process that the previous Conservative Government also followed. Every Government would have an appropriate regulatory and licensing regime.

The roads infrastructure, the foundations of installations, the fuels currently relied on by vessels transporting offshore wind towers and turbines, and even composite turbine blades rely heavily on oil and gas production. More significantly, the skills required to deliver the renewables revolution that will be at the heart of Scotland’s industrial economy are the same skills currently utilised in oil and gas. Those who wish to force the decline of the North sea without creating renewable jobs will do to the oil and gas communities what the Tories under Thatcher did to our coal and steel communities. That would be unforgivable.

Douglas Lumsden Portrait Douglas Lumsden
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Draft 1 of the Scottish Government’s energy strategy was released over three years ago, with a presumption against new oil and gas. Does the hon. Member agree that that is damaging, and that it is time the SNP scrapped that policy?

Graham Leadbitter Portrait Graham Leadbitter
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The hon. Member probably needs to keep up a bit because that position has already been scrapped. That was articulated by the First Minister.

--- Later in debate ---
Uma Kumaran Portrait Uma Kumaran
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I will not give way; I will continue.

We also know what success looks like. Countries in the Beyond Oil and Gas Alliance, ranging from Denmark to Costa Rica, are committed to ending reliance on oil and gas, so this issue is already being discussed globally.

I find it interesting that Conservative Members here are passionately making the case for oil and gas today, because it was their Government that presided over an unmitigated collapse in jobs in the oil and gas industry. Half the jobs in the North sea disappeared in the last decade under a Conservative Government. We did not hear anything from the Conservatives at the time, so let us remember why so many of them are talking about oil and gas today. They are masking what they are saying as standing up for workers, but the truth is that they are fighting climate deniers on their own Benches and Reform’s climate sceptics on their right. They are using the industry as a tool in their own political fights here.

Douglas Lumsden Portrait Douglas Lumsden
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Will the hon. Member give way?

Uma Kumaran Portrait Uma Kumaran
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I will not give way; I will carry on.

The case that I am making is backed by science. We heard earlier that a 1% increase in global warming would be catastrophic. We are already seeing extreme temperatures. The news right now is that France has just hit 44°, we have sweltering temperatures in Britain, and people are pooh-poohing the idea of a 1% rise in global temperatures. They continue to deny the reality of the climate crisis. Yes, this debate is about jobs, energy security and our future, but it is also about protecting the planet from the present and very real threat of climate devastation. The simple reality is that North sea production is not compatible with Britain’s climate commitments.