Oil and Gas

Debate between Gregory Stafford and Sarah Coombes

Tuesday 24th March 2026 Commons Chamber

[Gregory Stafford]

I understand that the figure is £25 billion, which is a significant injection into the Treasury however we look at it. The simple truth is this: if we increase domestic supply, we can ease pressure on prices, reduce reliance on expensive imported LNG and cut costs. That is not ideology—it is basic economics.

The idea that new licences would take too long does not survive scrutiny either. Much of the North sea’s infrastructure already exists. Pipelines and platforms have spare capacity. New fields can be tied into existing systems, accelerating production and reducing cost. What Labour presents as inevitability is in fact a political choice. In the non-statement the Chancellor made earlier today, she talked about cutting red tape. Perhaps she should think about cutting Red Ed first of all, because this choice has consequences.

The ban on new licences risks leaving 2.9 billion barrels of oil and gas in the ground and puts at risk 200,000 jobs. Those are not abstract numbers. They are skilled, well-paid jobs that have powered communities for generations. This is not transition; it is industrial retreat.

[Sarah Coombes]

Is it not the case that Britain’s renewable economy is growing three times faster than the rest of the economy? If we were to retract our commitments to renewable energy and net zero, the investor confidence would reduce, which would be really bad for our European economy and the brilliant jobs that have been created in this industry, yet that is exactly what the Conservatives are proposing today.

[Gregory Stafford]

If I were being generous, I would say merely that the hon. Member has not listened to my speech or read the motion in front of us. I have not mentioned anywhere that we will be cutting back on renewable energy.

If Labour’s position is misguided, the Liberal Democrats’ position is outright reckless. They would pile further taxes on the North sea through an expanded energy profits levy, despite clear evidence that such measures deter investment and ultimately reduce tax revenues. Some analyses suggest that scrapping the EPL could deliver an additional £25 billion to the Treasury over the next decade. At the same time, the Liberal Democrats would smother the sector in layers of environmental, social and governance reporting and regulation, slowing down investment, increasing costs and driving production overseas. And for what? They would do so to meet accelerated net zero targets that are divorced from the reality of how Britain actually uses its energy.

Here is the fundamental point: electricity accounts for only around a fifth of our total energy use. The rest still comes from oil and gas for heating, transport and industry. We are not about to replace that overnight; nor are there credible plans to do so from this Government. The choice is not between oil and gas or renewables. We need both. The real choice is whether we produce that energy here under our own environmental standards, supporting British jobs and British revenues, or whether we import it from abroad at a higher cost and with higher carbon. The British public understand this. Around three quarters say that we should produce our own oil and gas rather than rely on imports, and they are right. Our plan recognises that. It backs domestic production, cuts unnecessary net zero taxes and delivers cheaper energy while maintaining our environmental commitments. I say to Ministers: stop outsourcing our energy; stop exporting our jobs; and stop pretending that dependence is a virtue.