Oil and Gas: UK Continental Shelf

Lord Hughes of Woodside Excerpts

Tuesday 9th February 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I am very much aware that my noble friend has a very distinguished record as a former Energy Secretary. However, I do not think it is true to say that the oil industry is entering a period where its significance is diminished. It is perhaps not what it was, but it is still of enormous importance. The two oil fields to which I referred will be able, when at maximum production, to supply energy to 2 million homes. However, he is absolutely right about the importance of shale and the Government are determined to go ahead with exploration for it.

[Lord Hughes of Woodside (Lab)]

My Lords, will the Minister comment on the reports in today’s press that the Chancellor is expected to raise taxes on the oil industry at a time when consumers are not really seeing a reduction in price at the petrol pumps? Will he disabuse us of that idea?

[Lord Bourne of Aberystwyth]

My Lords, matters for the Budget are, of course, matters for the Chancellor. The noble Lord will know that I cannot comment on that.