Oil and Gas Industry

Lord Bruce of Bennachie Excerpts

Tuesday 22nd September 2020 Lords Chamber

Asked by

[Lord Bruce of Bennachie]

To ask Her Majesty’s Government what steps they will take to ensure the recovery and diversification of the United Kingdom oil and gas industry supply chain.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con) [V]]

My Lords, I recognise the impact that the coronavirus pandemic and the lower oil price have had on the oil and gas supply chain. We are working closely with the sector to agree a transformational North Sea transition deal, which we have committed to delivering in this Parliament. The focus of this deal will be on ensuring that the sector can support the energy transition and on anchoring the supply chain here in the United Kingdom.

[Lord Bruce of Bennachie (LD) [V]]

My Lords, I thank the Minister for that reply. Does he agree with me that, as we transition to net-zero carbon, we will continue to require fossil fuels and that it is better to use our own, which meet high international standards, and to sustain a quarter of a million UK jobs? Will the Government work closely with the industry, the Scottish Government and local councils to help accelerate diversification into carbon capture and storage and renewable energy, and exploit the huge potential from hydrogen, using the capital and world-class expertise that exists in our industry, so that these high-quality jobs can be diversified into new, low-carbon-sector jobs, rather than be lost?

[Lord Callanan (Con) [V]]

I agree with the points made by the noble Lord. I congratulate the sector on its response to the twin crises of the pandemic and the lower oil price. The Government launched an unprecedented Covid-19 financial package because we want to support the sector, which sustains more than 270,000 jobs in the UK. As I said earlier, we are committed to a proper North Sea transition deal.