Oil and Gas Authority: Remit

Lord Howell of Guildford Excerpts

Thursday 2nd December 2021 Lords Chamber

[Lord Callanan (Con)]

I actually agree with the first part of the noble Lord’s question that production from the North Sea is on a declining pathway. Our usage is, of course, on a declining pathway as we transition to net zero.

[Lord Howell of Guildford (Con)]

My Lords, I declare an interest as set out in the register. Would it not be helpful to explain even more clearly to the public that none of the needed energy decarbonisation or transition is going to happen smoothly without a proper back-up of swing suppliers and fuel sources? Unless there is a prudent level of continued investment in fossil fuel sources, we will see many more of the violent fuel and energy price spikes we have now, which cause considerable stress and hardship for millions of households experiencing this every day and threaten our national security.

[Lord Callanan (Con)]

I know my noble friend speaks with great authority on this as a former Energy Minister himself, and I agree with him. Of course, the ultimate solution to the problem of high gas prices is to use less of it. Indeed, we are doing that, and we are continuing to develop our renewable sources. We have one of the largest productions of renewable sources in the western world. However, fossil fuel generation, such as unabated gas-fired generation, currently plays an important role in keeping Britain’s electricity system secure and stable. The development of clean energy technologies means that it will be used less frequently in future, but it will still be required.