Offshore Petroleum Licensing Bill

Debate between Jerome Mayhew and Caroline Lucas

2nd reading
Monday 22nd January 2024 Commons Chamber

[Jerome Mayhew (Broadland) (Con)]

We are no strangers to hyperbole in this Chamber, but I think the exaggeration of the importance of this Bill in the debate has surprised even Government Members. To hear Opposition Members, we would think that the Government have made a bold announcement to reject their policies on climate change, to deny the science and to minimise the impact of climate change, and to say that we are no longer committed to decarbonising by 2050. None of that is even remotely true.

Nothing has changed in relation to the Government’s policy on climate change, and decarbonisation in particular. In fact, the Prime Minister recently reaffirmed that. The United Kingdom recently passed the substantial marker of being the first of any major economy to more than halve its emissions. That is a huge milestone, and that is the kind of climate leadership that is important; not making virtue-signalling announcements in this Chamber or elsewhere. Countries around the world look at us because of what we do, and we are decarbonising and leading by example.

I will take no lessons from the Labour party. I looked this up during the debate: in 2010, on Labour’s watch, the economy emitted 495.8 million tonnes of CO₂ equivalent; now it is 320 million tonnes and declining. That is as a result of Conservative policies in action, where we accept the science on climate change but take positive actions on the really important thing: it is the amount of oil and carbon we use that is important, not where it comes from.

The Conservative record is incredibly strong, but we still recognise, as does the Climate Change Committee, that we need oil and gas as part of our long-term future. Currently, as my hon. Friend the Member for Banff and Buchan (David Duguid) pointed out, about 75% of our energy comes from hydrocarbons—oil and gas. That is reducing, but it is on a trajectory to get to about 25% even in 2050 and beyond.

[Caroline Lucas]

The hon. Member is taking the Climate Change Committee’s name in vain. It does not say that we need new oil and gas. It says categorically that new explorations of oil and gas are not compatible with our net zero obligations. I do not understand why he is claiming something that is different from what the committee says. He compared emissions under a Labour Government with those under a Tory Government. I am no apologist for the Labour Government, but I wonder whether he put consumption emissions into those calculations. Did he work out whether emissions have gone down in the UK because we have outsourced even more of our manufacturing to countries on the other side of the world?

[Jerome Mayhew]

I am grateful to the hon. Lady for that intervention. The Climate Change Committee gives us the science, and the political decisions are taken in this House. We are not talking about an increase in exploration; we are talking about a managed reduction of 7% per annum.

Moving on, the question is not whether we have oil or gas, yes or no. We need oil and gas, certainly for the transition period between 2024 and 2050, and even beyond—according to the Climate Change Committee, around 25% of our energy will still come from oil and gas. The question is: where should that oil and gas come from? If we need to supply this economy with oil and gas, it is my belief that we should use UK oil and gas, and there are reasons for that. The first is that the industry employs 200,000 people. I would prefer that employment to remain in the UK economy, rather than export it to Russia, Qatar, Saudi Arabia or other oil and gas producing countries. That is a reasonable position, given that our consumption is required for the future.

The second reason is geopolitical. We need an alternative to Russian gas, and not just in this country. I accept the point made earlier by Opposition Members: that oil and gas is a global market, and that 80% of North sea oil is exported to Europe. But emissions are global and so are the geopolitics. It is right, and in our strategic interest, that Europe should have a viable alternative to Russia for the supply of hydrocarbons. We have seen in the last two years the awful consequences of an overreliance on the Russian supply of hydrocarbons, and more so in Europe—Germany, in particular—than in the United Kingdom. We have become a net exporter of gas to mainland Europe—a little from the North sea, but a lot from Milford Haven. Qatari liquid natural gas is imported into our country and transported by the connectors to mainland Europe. The Europeans are sucking up very polluting liquid natural gas because they do not have a viable, cleaner alternative, which North sea gas would provide.

Energy Bill [Lords]

Debate between Jerome Mayhew and Caroline Lucas

Report stage
Tuesday 5th September 2023 Commons Chamber

[Jerome Mayhew (Broadland) (Con)]

Thank you, Mr Deputy Speaker. I am just going to talk about one new clause, new clause 29, which I oppose. It seeks to prevent further licences of North sea oil and gas. The reason I oppose it is that we have a plan for the decarbonisation of our economy and it is policed, if I can put it that way, by the Committee on Climate Change. In the path to net zero by 2050, we recognise that we have a continuing need for oil and gas at least until 2035, when more than 50% of our energy needs will still come from fossil fuels, and actually up to 2050 included, because it is net zero, not absolute zero. We have to have oil and gas, so let’s get it from the most efficient and environmentally friendly source. The most environmentally friendly source is Norway, but that is not an unlimited resource; the CO₂ equivalent per barrel of oil there is about 7 kg. The additional oil and gas we use comes not from Norway but from Qatar; it is liquid natural gas and the CO₂ equivalent per barrel there is 79 kg, whereas the figure for the North sea is 21 kg—a quarter the level of environmental damage per kilogram of CO₂ equivalent. The consequence of closing down the North sea prematurely would be to increase emissions and make our carbon footprint worse. It would be the triumph of virtue signalling over the practicalities of decarbonisation.

[Caroline Lucas]

Will the hon. Gentleman give way?

[Jerome Mayhew]

I will not; I am sorry, but I only have one and a half minutes.

It is logical on environmental grounds, therefore, to support new licences in oil and gas. But there are other arguments. There is the balance of payments—we used to talk about the balance of payments. In 2022, our trade in goods deficit was £63.9 billion. I would rather have our imports of oil and gas coming from the UK and not being imports at all, supporting our balance of payments.

There is the tax income. The Office for Budget Responsibility says that in 2023-24 we are going to get £10.4 billion of tax revenue from North sea oil. That pays for a lot of public goods. We should be supporting that, and we should be supporting business profitability and jobs, because that supports our communities. It also gives time for the phasing of what is described as the just transition to renewable jobs. There is an irony in that the proponents of new clause 30, led by the hon. Member for Brighton, Pavilion (Caroline Lucas), talk about just transitions, but it is this longer process away from North sea oil and gas, managing decline, that provides the space for a truly just transition to new renewables employment in this country. I do not support new clause 29 as a result.