Oral Answers to Questions

Michael Fabricant Excerpts

Thursday 14th March 2013 Commons Chamber

[Gregory Barker]

I am afraid I just do not agree with my right hon. Friend, despite his considerable experience and knowledge of the sector. None of us knows for sure whose forecasts are right, and we will not know until the time. A great deal of uncertainty is attached to all forecasts, but the latest Government forecasts to 2020 show that consumers will be better off due to our policies.

[Michael Fabricant (Lichfield) (Con)]

15. What steps he is taking to ensure that oil from the North sea continues to make a contribution to UK energy needs; and if he will make a statement.

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

The North sea has been a major UK success story, and oil and gas will continue to play a key role in the energy mix for years to come. The Government continue to promote activity and investment in the North sea, and we maintain a close dialogue with the industry on how to support its continued development.

[Michael Fabricant]

My hon. Friend knows that the Government have issued more exploration licences than ever before, which is fantastic. However, there are many mature wells from which about 80% of the oil has been extracted. How can we set up a new procedure whereby we wring every single last drop of oil from those mature wells, and benefit the UK economy accordingly?

[Mr Hayes]

My hon. Friend is absolutely right: North sea oil and gas have a long and bright future. He may not have seen the report from Oil & Gas UK—as you may not have done, Mr Speaker—but it states that we are seeing the highest investment in UK offshore oil and gas development on record. The Government, too, are doing their bit. The brownfield allowances have encouraged that investment, and this is about growth, jobs and skills, as well as energy. I look forward to a bright future in the North sea for the United Kingdom and all those who work in that wonderful industry.