Oil and Gas: UK Continental Shelf

Lord Bruce of Bennachie Excerpts

Tuesday 9th February 2016 Lords Chamber

Asked by

[Lord Bruce of Bennachie]

To ask Her Majesty’s Government what action they intend to take to assist the viability of oil and gas exploration and development on the United Kingdom continental shelf in the light of the reduced price of oil.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, during his visit to Aberdeen on 28 January, my right honourable friend the Prime Minister set out an action plan to help build a bridge to the future for the industry. This includes a £20 million package of new investment in exploration, innovation and skills, and a new oil and gas ambassador.

[Lord Bruce of Bennachie (LD)]

My Lords, the oil and gas industry is probably facing its worst ever crisis since it was established more than 60 years ago. Will the Government now scrap the supplementary charge and will they clarify the liabilities on decommissioning which might help that to proceed? This industry has provided tens of billions of pounds worth of investment and hundreds of thousands of jobs for many decades. Will the Government ensure that their action plan will enable it to do so for many decades into the future?

[Lord Bourne of Aberystwyth]

My Lords, it is true that representations have been made on the fiscal front and the Chancellor will be considering those. We must recognise that it is not all doom and gloom. Bob Dudley, the chief executive of BP, said last month that the North Sea remained viable economically and would be for decades to come.