Saudi East-West Oil Pipeline

Debate between Martin McCluskey and Richard Tice

Tuesday 15th September 2026 Commons Chamber

[Martin McCluskey]

As I said in response to previous questions, we are exploiting the resources in the North sea; we are extracting oil and gas from it. We will make a decision on Rosebank and Jackdaw in due course, and we have a robust energy mix in this country. The right hon. Gentleman made the point himself about reliance on overseas sources of energy. We would still require production beyond oil and gas. That is why we are investing in renewables, be it wind or solar, all of which are helping to protect our energy security and our national security.

[Richard Tice (Boston and Skegness) (Reform)]

We are so lucky in this great country that we have enjoyed decades-worth of oil and gas—energy treasure—but we are so unlucky that we have an utterly clueless bunch of socialists not using this energy treasure. Will the Minister and the Government finally realise that the way to reduce our exposure to overseas fossil fuels is to use our own offshore, onshore and around the Falkland Islands? Let’s get some growth, let’s get some jobs and let’s grow the United Kingdom.

[Martin McCluskey]

I always enjoy it when Reform use “socialist” like it is a bad word and not a badge of honour. As I have said in response to previous questions, we are using the resources from the North sea and extracting oil and gas on a daily basis. That is part of our energy mix and will be for years to come.

Fracking Ban

Debate between Martin McCluskey and Richard Tice

Tuesday 15th September 2026 Commons Chamber

[Martin McCluskey]

I thank my hon. Friend for her question. In her introduction to the debate, the hon. Member for Thornbury and Yate raised the point about geothermal. The specific issues relating to high-intensity hydraulic fracturing that we have seen have been in shale, not in the types of fracturing used in conventional oil and gas, which are also used in geothermal. There has been some division across the House this afternoon: there was a suggestion from the Liberal Democrat Benches that we use a definition linked only to oil and gas, thus keeping geothermal out of it; there were suggestions from elsewhere that a full ban may also impact on uses such as geothermal. That points to why we have to be careful and specific about what it is we are trying to achieve.

Low-volume hydraulic fracturing has been happening in the UK for decades. It has been used not just in respect of oil and gas but in the water industry and geothermal. In that time, there has been no clear evidence that it induces seismicity that can be felt on the surface. Low-volume hydraulic fracturing operations are routinely used in conventional oil and gas operations. They target different types of rocks, create fractures close to the wellbore and are typically short, single-stage operations, as opposed to the continuous fracturing characteristic of shale gas fracking.

In practical terms, those operations are limited in scale and purpose. They are designed to improve flow from an existing conventional reservoir, not to fracture large areas of shale rock. They do not involve the same high-volume, multi-stage process associated with shale gas fracking, and they have not produced the same evidence of induced seismicity. Furthermore, all such activities are subject to a robust regulatory regime.

The hon. Member for Bath (Wera Hobhouse) and my hon. Friend the Member for Bolton West (Phil Brickell) spoke about safety. Operators must obtain planning permission, environmental permits and health and safety approvals before proceeding, covering issues such as groundwater protection, management of emissions, handling of fluids and waste, and monitoring requirements. Where health and safety approvals are required, operators must meet the standards expected for well integrity and operational safety. Planning processes also provide a route for local impacts to be considered before activities proceed. We recognise the strong interest that Members expressed in the Burniston application, for which the planning authority has now refused permission.

Let me be absolutely clear: there is no loophole and no hidden route by which shale gas fracking can resume. The evidence-based policy position is clear, the effective moratorium remains in place, and the Government will not issue new onshore licences in England, including those that could be used for fracking for shale gas. That is the reassurance that communities across the country are entitled to hear.

Finally, I will turn to the wider arguments sometimes made about energy security and domestic production. Some, like the hon. Member for Boston and Skegness, who spent his speech denying the climate science, suggest that fracking for shale gas would strengthen our energy independence or reduce consumer bills. However, oil and gas are traded on the international markets, as has been mentioned by a number of hon. Members, and increasing domestic production would not shield consumers from global price volatility.

[Richard Tice]

I just need to clarify for the hon. Member for Newton Abbot (Martin Wrigley) that when I referred to nodding donkeys, I specifically said oil wells. I hope that helps him.

With regard to the price of gas, can the Minister explain why the wholesale price of gas in the United States is 80% cheaper than the wholesale price in the United Kingdom? That completely undermines what he has just said. The Minister has inadvertently misled the House, Madam Deputy Speaker.

[Martin McCluskey]

Absolutely not. As I said a moment ago, we are not the United States; we are not Pennsylvania or Texas. It is a different energy market. There is nothing to suggest that the extraction of shale gas in this country would reduce the cost of energy, just as there is no evidence to suggest that extracting more oil and gas from the North sea would reduce the cost of energy, if that is the point the hon. Gentleman was making.

Oil and Gas

Debate between Martin McCluskey and Richard Tice

Tuesday 24th March 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“welcomes the Government’s approach to the future of the North Sea, which maintains existing oil and gas fields for their lifetime, as well as introducing Transitional Energy Certificates while accelerating the transition to clean energy; notes that new licences to explore new fields would take many years to come online and would make no difference to energy bills; recognises that oil and gas prices are set on international markets; and further welcomes the measures announced by the Government to go further and faster on national energy security by reducing reliance on volatile fossil fuel markets and expanding secure, home grown clean energy.”

As I have said many times in this House, the North sea oil and gas sector is one of our great industrial success stories. We are proud of the role that the North sea’s workers and communities have played in helping to power our country and the world for decades, and we recognise the role that oil and gas will play in our energy mix for decades to come, as well as the vast skills and experience of our offshore workforce. However, as a Government we also have a duty to be honest about the challenges we face, and the reality is that more domestic oil and gas production will not make us more energy secure and will not take a penny off bills. There is a lot of debate when it comes to this issue, so it is important to focus on the facts.

[Richard Tice]

rose—

[Martin McCluskey]

And on that point—about facts—I will give way to the hon. Gentleman.

[Richard Tice]

Earlier today, the Secretary of State refused to answer my question about why the price of gas in the United States is between a third and a quarter of the price of gas here in the UK. Perhaps the Minister could help us all and help the British people with that question, which goes to the heart of the price of gas and the size and cost of our bills.

[Martin McCluskey]

As the hon. Member will know, the price of gas and oil is set on an international market and, as I have said, extracting more from the North sea would not make a penny’s difference to the price in this country.

The North sea is a super-mature basin that accounts for around 0.7% of global oil and gas production. Production has been naturally falling for more than 20 years, which means that our North sea no longer has the reserves available to support domestic energy demand. Crucially, any new licences now would not make any difference to people’s energy bills because, regardless of where it comes from, oil and gas is sold on international markets, where we are price takers, not price makers.

--- Later in debate ---

[Martin McCluskey]

I will say to the right hon. Gentleman what I said to his Front Benchers last week: the Conservatives need to stop talking down the North sea. With 1.1 million barrels a day being extracted, that is not an industry being shut down; that is an industry continuing to produce.

Just last week, the Minister for Energy met our North Sea future board in Aberdeen with representatives from industry, unions and local groups to discuss how we can drive a fair, orderly and prosperous transition. Net zero is the economic opportunity of the century—

[Richard Tice]

Madness!

[Martin McCluskey]

That is despite what the hon. Member for Boston and Skegness (Richard Tice) might say. This Government will ensure that our oil and gas workers can take advantage of that opportunity while driving for energy sovereignty and abundance with clean home-grown power.

Oil Refining Sector

Debate between Martin McCluskey and Richard Tice

Wednesday 14th January 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this debate. I know that he and other hon. Members, including my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn), have been engaging closely on this issue with the Minister for Energy, who stands ready to continue to engage with them on the detail.

Let me start with Prax Lindsey oil refinery. It entered insolvency on 30 June 2025 because of the untenable position in which the owners left the refinery, which gave the Government very little time to act. I know how difficult the process has been for the workers, their families and the local community. The insolvency process at the refinery is led by the court-appointed official receiver, who must act independently, in accordance with his statutory duties. Since the insolvency, we have worked with the official receiver to protect workers, and to ensure the safety of the site and the security of fuel supplies. That has also allowed time for bidders to express an interest in the site and its assets.

After a thorough process to identify a buyer for the site, the official receiver has determined that Phillips 66 is the most credible bidder and can provide a viable future for the site. I am glad to say that the sale is expected to complete in the first half of 2026. As many hon. Members will be aware, Phillips 66 is an experienced and credible operator of a Humber refinery, next door to Lindsey. It already supplies fuel to the region and has consistently turned a profit in recent years. The sale allows Phillips 66 to quickly expand operations at its Humber refinery.

The company has decided not to restart stand-alone refinery operations at Lindsey. In its words, not mine,

“Due to the limitations of its scale, facilities, and capabilities, evaluations have shown that the refinery is not viable in current form.”

Although that is disappointing, it is not totally unexpected, given the long history of problems with the business. We understand that the previous owners, Total, sought to sell the refinery for several years and sold it to Prax for a nominal amount. Since Prax’s acquisition in 2021, the refinery has recorded about £75 million of losses. In addition, following a thorough assessment of offers, the official receiver confirmed that no offer was put forward that would credibly see a return to refining operations in the next few years.

Phillips 66 plans to integrate key assets into its Humber refinery operations, expanding its ability to supply fuel to UK customers from the Humber refinery. That is positive news for boosting domestic energy security, securing jobs—including hundreds of new construction jobs over the next five years—and creating future growth opportunities for renewable and traditional fuels. That being said, Ministers in the Department and I recognise that this is a very worrying time for workers, and I am glad to report that the remaining 250 directly employed workers are guaranteed employment until the end of March, although that will be cold comfort to many of them. Phillips 66 will provide further information on the number of jobs that will be retained as it moves towards completion of the sale in coming months. The Minister for Energy has asked Phillips 66 for clarity as soon as possible, and to retain as many jobs as possible. The Government will continue to support the 124 workers affected by redundancy last October.

[Richard Tice]

The bottom line is that P66 is mothballing the site, and will use certain bits of it for parts, rather than investing in its other site. Will the Minister allow a full, open and transparent look at alternative bids that would have kept the site open, and would have allowed us to keep many more jobs and to retain a strategic national asset?

[Martin McCluskey]

The hon. Gentleman will know that such discussions are commercially confidential, and the official receiver has undertaken an independent process to come to his decision.

As my hon. Friend the Member for Great Grimsby and Cleethorpes mentioned, the support for the 124 workers affected by redundancy last October includes a training guarantee to ensure that they have the skills that they need, and are supported to find long-term jobs. That goes above and beyond the usual support offered in insolvency situations. I am pleased to confirm that many —the majority—of those workers have already taken up this offer. My hon. Friend the Minister for Energy will be pleased to discuss any issues that my hon. Friend the Member for Great Grimsby and Cleethorpes thinks may emerge to do with the training guarantee.

I believe that the agreement with Phillips 66 marks the next step in securing an industrial future for the site and for the workers, who were badly let down by the former owners. The circumstances surrounding the insolvency are deeply concerning, and that is why the Energy Secretary immediately demanded that the Insolvency Service launch an investigation into the owners’ conduct and the circumstances surrounding the insolvency, which is ongoing.

Turning to issues in the broader UK oil refining sector, the UK’s refineries continue to play a vital role in maintaining reliable supplies of essential fuels that keep transport moving, industry operating and support households with their day-to-day lives. We appreciate that their contribution goes far beyond fuel alone. They are anchors for local economies, providing well-paid, skilled jobs and supporting a wide web of supply chains, which involve everything from chemicals to plastics to advanced manufacturing.

Refinery facilities also enable the production of specialist materials that many of our industries rely on. For example, the Humber refinery produces the UK’s only anode-grade petroleum coke, used in electric vehicle technology, while Fawley’s output of specialised rubber helped to ensure vaccine vials could be produced securely during the pandemic. Crucially, our refineries are also adapting for the future. They are investing in modernisation, low-carbon fuels, and technologies such as carbon capture, which are all essential to the UK’s transition to net zero. The Humber region will have a major role to play in that over the coming years. While overall fuel demand is expected to shift over time, sectors such as aviation, maritime and heavy industry will continue to depend on refined products well into the future. We want to preserve our refining sector and keep it competitive.