Windfall Tax: Oil, Gas and Energy Companies

Lord Naseby Excerpts

Tuesday 22nd February 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, the noble Lord is correct to talk about price fluctuations in the sector, of course. In spring 2020, the price of oil crashed to below $20 a barrel. That year saw investment in the sector at an all-time low, so an abrupt tax change would create further uncertainty and potentially undermine significant investment in that sector. However, the Government remain committed to supporting households with the cost of energy and have set out plans to do so.

[Lord Naseby (Con)]

My Lords, instead of threatening major companies such as Shell and BP, would it not be more sensible and in the interests of UK Ltd to recognise that we need those companies to pioneer work in new areas of supply for fuel and power, particularly hydrogen and areas like it?

[Baroness Penn (Con)]

My noble friend is right. The North Sea transition deal is a global exemplar of how the Government can work in partnership with the offshore oil and gas industry to achieve a managed energy transition.