North Sea Oil and Gas

Lord Howell of Guildford Excerpts

Thursday 10th February 2022 Lords Chamber

[Lord Callanan (Con)]

First, I agree with the noble Lord that it is much more sensible to use our own domestic resources, rather than LNG. However, the reality is that, throughout this period, the UK remains a net importer of oil and gas. Therefore, it makes no sense to pursue the operations he is proposing. We do not produce enough of our own domestic energy. We are expanding our renewable capacity massively and have the largest developments of offshore wind in the world. We need to go further and faster, but it makes no sense to isolate ourselves from the rest of the world and cut off imports and exports.

[Lord Howell of Guildford (Con)]

My Lords, in running down North Sea oil and gas for climate purposes, is it not vital to ensure that supply does not shrink so fast that it falls behind continued demand, with the resulting price explosions in all the fossil fuels that we see now, which are causing such misery and crisis?

[Lord Callanan (Con)]

I totally agree with my noble friend. I know he speaks with great authority on this matter as a former Energy Minister. As I just said in response to the noble Lord, Lord Fox, we remain a net importer. Production from the North Sea is sadly declining. We need to make sure that we ramp up our renewable capacity as quickly as possible, but it remains a fact that we will still have demand for oil and gas during the transition. If we have that demand, it makes sense to produce this domestically rather than importing it from other, unstable, parts of the world.