Oil and Gas Industry

Lord West of Spithead Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

My noble friend makes a very good point. It will be key to the sector deal to make sure that we can utilise the tremendous expertise across the oil and gas sector both for our own low-carbon transition and to help other countries with theirs.

[Lord West of Spithead (Lab)]

My Lords, the Oil and Gas Authority is only just beginning to take account of the UK’s statutory target for net-zero emissions of greenhouse gases by 2050. Official projections from the Department for Business, Energy and Industrial Strategy take no account of that requirement. Our nation is sleepwalking into an energy crisis of major proportions. National daytime electricity demand is forecast to double from 40 to 80 gigawatts by 2050, when we should have net-zero emissions. Oil and gas will have to be phased out, yet the Government’s industrial strategy does not mention the need to retrain and redeploy oil and gas workers. Although renewables can achieve much, there will always be days when wind and sun cannot meet our demands. Nuclear power provides the green option, yet we are discovering daily that the plan for nuclear power is in growing disarray. How do the Government intend to resolve this imminent crisis of secure nuclear power provision?

[Lord Callanan (Con) [V]]

I do not accept that we are sleepwalking into a crisis. We are devoting huge expertise and energy to planning for the transition. Renewables and nuclear have an important role to play in the transition, as do oil and gas. However, the noble Lord will have to be patient and wait for the energy White Paper, when all these matters will become clear.