Oil and Gas

Michael Shanks Excerpts

Tuesday 24th March 2026 Commons Chamber

[The Minister for Energy (Michael Shanks)]

This has been an interesting debate at times—at other times, perhaps it has not been—but it is a timely and important debate, as many people sitting at home will be watching the situation in the middle east concerned about the cost of living, our energy security and the impact that our energy policies have on their lives. Let me start, as the shadow Minister rightly did, with what I thought was an outstanding contribution from my right hon. Friend the Member for Oxford East (Anneliese Dodds). She rightly centred the debate, as others should have done, on the workers who have powered the country for decades. I have had the great pleasure of meeting many of them in the 20 months I have had this job—not on one visit to Aberdeen, but on many. They have done the job that we have asked of them in extraordinarily difficult circumstances. They have risked their lives—indeed, many have lost their lives—in the pursuit of the energy that we have used for six decades.

I will never diminish the role that the North sea has played for six decades in powering the country. It has been a source of energy, a source of revenue and a source of good jobs not just in the north-east of Scotland but beyond that in the east and north-east of England and right across the country. Its workers are sought after around the world for their skills and experiences.

My right hon. Friend rightly challenged what we have heard from the Opposition in the debate. Slogans do not protect those jobs. Standing up with nothing but rhetoric and pretending that the 70,000 jobs lost on their watch were somehow irrelevant will not help, and it diminishes the scale of the challenge we face.

Slogans will not build the jobs of the future. The shadow Minister talked about a lack of turbines in Aberdeen harbour, yet his party would rip up the auction that delivers the contracts that will create those jobs—and he has the brass neck to say that that is a problem with our Government’s policy. It is his policy that caused the problem.

The shadow Minister talked about numbers on a spreadsheet, as if we do not care about the workers caught up in this. That is why we are building the transition and investing in the future, while they ignored it. When we started becoming a net importer—not in July 2024, as some Opposition Members would like to pretend, but in 2003—we should have been looking at the transition. I am willing to accept that the previous Labour Government should have done more on this. The Conservatives should accept that over 14 years, as they saw thousands of jobs disappear from the industry, they should have been doing everything in their power to build up what came next. They failed to do that.

We have heard a number of straw man arguments put forward today about the North sea being closed. The North sea, right now, continues to send gas into our gas network and it will continue to do so for decades to come. However, the transition is hugely important. It has been under way for decades and we have to acknowledge how important it is to invest in what comes next.

The events of recent weeks should concentrate minds. We should have learned the right lessons coming out of the invasion of Ukraine but we did not, and we must now learn the right lessons coming out of this present crisis. Doubling down on fossil fuels does not give us energy security; it makes us depend even more on the very volatility that has driven us into economic problems time after time. More than half the economic shocks that have faced this country have been caused by fossil fuels, and the Conservative party’s answer is to double down and have even more of it. That is not a plan for the future of this country.

[Graham Stuart]

The only doubling down being done is by the Minister, who insists that we import more from abroad. Where energy is produced makes no difference to how much we consume. It can either be produced abroad or it can be produced here, with jobs, tax and lower emissions. Why on earth would he choose for it to be done abroad?

[Michael Shanks]

I was going to come to the right hon. Gentleman’s contribution later. He is also very likeable—he kindly said that of me and I appreciated it. He talked about “lunacy made flesh”; in the past, he has remarked that his own party’s policy of cancelling auctions for renewables has been lunacy. The truth is that we need both: we need oil and gas for many years to come, but we also need to build what comes next. I am afraid that point is entirely lost on those on his party’s Front Bench.

The right hon. Gentleman spoke about the US earlier and said that the UK was a price taker, not a price maker. The difference is that the US is responsible for a quarter of the world’s gas; we are not. By all standards, we have a minuscule amount of gas in the international markets. I am not saying that we should not be hugely grateful to have that gas in the seas around our country, but it is a minuscule amount compared with the global gas take. Therefore, we will always be a price taker, not a price maker.

There were a number of contributions that I will not have time to come to, but I want to pick up on the point made by the hon. Member for Bromsgrove (Bradley Thomas). I think he quoted me to myself in saying that energy policy is not a theoretical exercise. I agree with him, and today’s motion states that we need to look at the reality of where we are as a country and how we deliver our energy security in an uncertain world. That means having a mix of energy and it means moving faster to deliver the clean, home-grown power that is the very thing that can protect households right now and allow us to take responsibility for our environmental impact.

Conservative Members used to be great champions of the need to tackle the existential challenge to this planet that is the climate crisis, and there was great consensus in this place and across our politics on that. They have rowed back from that in a desperate attempt to chase Reform down the cul-de-sac of being anti-net zero, but in doing so they are turning their backs on the tens of thousands of jobs that will be created in the future.

I spoke earlier about the importance of learning the right lessons from this crisis. As long as we are dependent on the volatile global fossil fuel market, we will always be vulnerable to the kind of price shocks that we are seeing today. When faced with events like that, the public rightly expect us to work out the pathway that reduces that exposure and protects their household bills long into the future. Today, we have heard no plan whatsoever for doing that from the Conservatives; indeed, we have just heard a plan to double down on the very exposure that households are paying the price for.

The alternative path is to invest in the clean energy transition and recognise that oil and gas will play an important part in that, but also to invest as quickly as we can in renewables, carbon capture and hydrogen, and in decommissioning our offshore assets, which will produce many, many jobs for a long time to come. That is why we have attracted £90 billion of investment since we began this challenge. It is why we are tackling the gridlock in the national grid that has held back projects for so long. It is why we are creating thousands of jobs across the country. Every wind turbine that we switch on, every solar panel that we install and every bit of grid that we build that was neglected by the Conservatives for far too long helps us to reduce our dependency on fossil fuels and helps us to protect bills.

There is an important debate at the heart of this issue, and I regret that the motion tabled by the Opposition does not help us to have it. It ultimately comes down to a choice: do we want to continue on the rollercoaster of fossil fuels, or do we want to take control of our energy future with secure, home-grown energy, creating jobs, cutting bills and strengthening our national resilience? At a moment like this, this Government are clear what path we are on. It is the right choice for the British public. I commend to the House the amendment in the name of the Prime Minister.

Question put (Standing Order No. 31(2)), That the original words stand part of the Question.