Oil and Gas

Grahame Morris Excerpts

Tuesday 24th March 2026 Commons Chamber

[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.