Prax Lindsey Oil Refinery

Debate between Michael Shanks and Carla Denyer

Tuesday 22nd July 2025 Commons Chamber

[Michael Shanks]

I will avoid the wider political points in a week when workers are finding out about job losses, because that is obviously devastating for them. I will just say that the Government have published their industrial strategy, and this is the first time the country has had an industrial strategy in a very long time. [Interruption.] Well, let us say a credible industrial strategy, if the right hon. Member for Beverley and Holderness (Graham Stuart) thinks he had one before. Again, I ask him to present it to me. We are investing in the industries of the future, and delivering thousands of jobs on the Humber and right across the country. We are making sure that investment comes forward in jobs for the future. [Interruption.] The problem with the right hon. Gentleman’s point is that his party opposes that investment. It opposes the very thing that will deliver the jobs of the future, and I am afraid that is simply an untenable position. Either he is for or against investment in jobs; he has to say which it is. The industrial strategy is the way to deliver that.

[Carla Denyer (Bristol Central) (Green)]

The last time we discussed Prax Lindsey, I asked the Minister to support my energy jobs Bill—a plan for the redeployment and retraining of oil and gas workers that is proactive and industry-wide rather than reactive and crisis by crisis, and that would be paid for by the companies. That is what the workers and the unions want, but the Minister said he did not agree with it. He has now said that the Government will fund a training guarantee for these refinery workers and is asking this company’s owners to make voluntary contributions to support workers. That is progress, but will he now turn this into a proactive and industry-wide plan, and please go beyond asking the company nicely to do the right thing and require it?

[Michael Shanks]

I think the hon. Lady slightly misses the point. The company went into insolvency. The workers are therefore entitled only to statutory redundancy. I do not think that that is acceptable, so I have called—not nicely, but directly—for the owners of that company to do the right thing, put their hands in their pockets and fund proper redundancy for those workers. That is separate from a wider piece of work we are doing around the transition. I think she also misses the point about the importance of delivering investment in oil and gas that is also investment in renewables and in carbon capture, utilisation and storage to deliver the jobs that come next, so that there is a transition for those workers. I have said that I do not support her proposal, and I am happy to say that again because it would do neither of those things. It is essential that we support the oil and gas industry in its current form, but recognise that it is in transition. We still have decades of oil and gas to come in this country, but we are already building up the industry that comes next. That needs investment, and it also needs us to build infrastructure, which many people in her party seem to oppose.

Oral Answers to Questions

Debate between Michael Shanks and Carla Denyer

Tuesday 15th July 2025 Commons Chamber

[Carla Denyer (Bristol Central) (Green)]

T2. The Government’s new Scope 3 guidance for offshore projects is hugely welcome. We are already battling deadly heatwaves and overshooting climate limits, so it is critical that we stop extracting new oil and gas. Given that there is no scenario in which Rosebank, or indeed any new oil and gas wells are compatible with limiting global temperature increases to 1.5°C, why are the Government trying to delay recognition of that climate reality by saying that applications will be considered on a case-by-case basis? Will the Minister give us a conclusive science-backed answer now, and confirm that Rosebank will not be going ahead?

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

Of course the Government follow the regulations that we have put in place quickly, and applications must be considered on a case-by-case basis—that is the way anyone would expect them to be dealt with. I will not say on the Floor of the House any more about those applications, as they are live decisions that will be made in due course by the Department.

Fossil Fuel Advertising and Sponsorship

Debate between Michael Shanks and Carla Denyer

Monday 7th July 2025 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Twigg, for my first petitions debate, which are a great innovation in parliamentary procedure. Like my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier), I thank everyone who signed the petition. I do not think that I have been in a Westminster Hall debate with so many people in the Public Gallery. That is fantastic to see, and I thank them for being here.

I join the shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), in his comments about the Piper Alpha disaster, the 37th anniversary of which was yesterday. It was the worst oil disaster in history, in terms of human lives lost, and it reminds us just how dangerous some of the work in the North sea is. It also reminds us of the importance of the culture of safety, which has changed beyond recognition since that disaster. This is a useful moment to pause and reflect on the lives that were lost.

This is an important debate, and I praise my hon. Friend the Member for Burton and Uttoxeter for his excellent introductory speech. As a Member of Parliament, it is not always easy to give a balanced speech, but he attempted to put forward both sides of the argument very strongly, and I give credit to him for doing so.

I also thank other hon. Members who have contributed to the debate and raised a number of points. My hon. Friend the Member for Stroud (Dr Opher) brought his extensive medical experience to the debate. He rightly spoke about the significant impact that emissions have on people’s health, and about why climate change is a public health crisis as much as an environmental one. I also thank the hon. Member for Bristol Central (Carla Denyer) for her commitment to this issue. What she does in her spare time will now be in Hansard, so I think Wikipedia will be updated—there is no way out of that; it is on the record.

I recognise the strength of feeling on this incredibly important issue; the 100,000-odd signatures on the petition that triggered the debate underline that point. Before I address the specific points in the petition, however, I want to be absolutely clear that the Government are committed to tackling climate change. In fact, the Prime Minister said recently that that is “in the DNA” of the Government. We know it is an urgent threat to life—an existential crisis for our planet—and as I have said on numerous occasions, it is no longer a theoretical future threat, but a very present reality. We do not have to look far around the world to see examples of that.

Even if we did not accept all that as a huge reason to take action, we should recognise that the huge opportunity that swapping fossil fuels for clean, home-grown energy provides is much greater than just tackling the climate crisis: it can deliver our energy security in an uncertain time for our world and create tens of thousands of new jobs. It is also the industrial opportunity of the century. That is why one of the Prime Minister’s five key defining missions in government is to make this country a clean energy superpower with clean power by 2030, accelerating towards net zero. It is also why the Prime Minister has set one of the most ambitious nationally determined contribution targets in the world—to reduce all greenhouse gas emissions by at least 81% by 2035—and a few weeks ago my right hon. Friend the Chancellor set out the most significant investment in home-grown clean energy in British history.

Let me be clear. The Government are committed to this transition because it is the right thing to do for our energy security and to tackle the climate, but we will succeed in this mission only if we bring people with us. The moment that people start to feel that this is something being done to them, not with them, is the moment when we lose the battle. The shadow Minister rightly pointed out that we have been on this transition for a long time now. We have halved emissions since 1990 because of the consensus between Governments of different persuasions. That consensus, as many people will not have failed to notice, has now fractured, which is a great shame.

For us to win the political argument, we have to bring people with us. Instead of banning and blocking, our emphasis needs to be much more on empowering people to make informed choices. As the Prime Minister said before the election, after a period in which Government seemed to tread quite heavily on all our lives, part of this Government’s mission is to deliver for the people of this country, but to tread a little lighter on people’s lives. In this space, that means ensuring that everyone has access to accurate and trustworthy information about the climate crisis and the energy they use and the options available to them to be part of the transition.

In that context, I turn specifically to the petition. The UK has a robust regime in place to regulate the content and targeting of advertising through the Committee of Advertising Practice, which sets the codes that are upheld, and through the Advertising Standards Authority, which enforces the codes. The Government are not involved in the codes or in any of the investigations or enforcement delivered by the Advertising Standards Authority. In 2021, those bodies launched a climate change and environment project to respond to the ongoing climate crisis and ensure that environmental claims made in advertising are not misleading or irresponsible. Those findings have informed their updated guidance on advertising.

As the Government’s response to the petition sets out, we do not currently have plans to go any further on the guidance and ban or restrict fossil fuel advertising. However, that is not to say that we do not recognise that the climate crisis, as I have already outlined, is the greatest long-term global challenge we face. To address that, we need a legal framework in place to help us reduce our emissions, which will contribute to reducing our reliance on fossil fuels.

[Carla Denyer]

I thank the Minister for his patience while I checked a fact. A minute or so ago, he used the phrase “informed choice” to defend why he is not planning to ban advertising for fossil fuels. Is he aware that that exact phrase, “informed choice”, was used by the tobacco companies to campaign against the ban on tobacco advertising? I am reading from a memorandum by British American Tobacco that was submitted to Parliament in 2000.

[Michael Shanks]

I suspect that if we go through all the words that have ever been spoken inside and outside this place, we might find two words that go side by side quite often. In answer to the hon. Lady, no, I do not think that that is the case at all. She makes a persuasive argument, but in my view it is not the argument that applies in this particular case, which I will outline if I can make just a little more progress.

To come to the broader point, it is important that people have the knowledge and information before them to make informed choices on personal decisions, particularly on installing things in their own home. However, as a Government, we have a responsibility to share factual information about the state of the climate. That is why this Government frequently talk about the importance of the climate crisis; I think I have done so three times already in this speech. I am not seeking to pretend that there is not a climate crisis, and I do not think we have hidden from that fact at all.

I also want to talk about the path that the UK is currently on. We need to make a broader argument to the public that goes beyond banning advertising by certain companies. Collectively, we have a responsibility to show the opportunities presented by this transition, counter to much of the misinformation and disinformation that is being put about, including by Members of this House.

The latest report by the Confederation of British Industry shows that the net zero economy is growing three times faster than the wider economy, so there is an economic argument that we have to make. Since we came into government last July, more than £40 billion of private investment has come into the clean energy industries. We believe that the best way to build on that success, bring the public with us and create a convincing argument that this is the right route is by focusing on the economic and social benefits of net zero.

We have therefore been working with industry to explore how we can reduce emissions from high-carbon products, including voluntary eco-labels that help consumers to make different purchasing decisions. We are continually listening to the private sector, local government, trade unions and civil society. That is why we relaunched the Net Zero Council, and we will also publish our upcoming public participation strategy. At the same time, we are doing everything we can to slash emissions while building a more secure and stable future for our country.

The shadow Minister, in customary fashion, reeled off a set of political lines about why this is the wrong choice for us as a country, despite the fact that he believed in it last year when he was delivering speeches from the Government Benches. The truth is that actions speak louder than words, which is why in the past year we have not just said that we are committed to the clean energy mission and to delivering action on climate change; we have delivered.

We ended the onshore wind ban within 72 hours. We set up Great British Energy, the first publicly owned energy company in 70 years. We consented enough clean power for 2 million homes by approving applications that had languished on Ministers’ desks. We kickstarted the carbon capture industry. In the past few weeks, the Chancellor has also announced a significant investment of more than £60 billion in home-grown clean energy, including new regional hydrogen networks for transport, storage, industry and power. We also published our industrial strategy, which places clean energy right at the heart of industrial renewal over the next 10 years.

The wider context of climate action is important, and we want the UK to be a world leader in this space. That is why in 2008, when my right hon. Friend the Energy Secretary held the same role, we backed the Climate Change Act 2008, making the UK the first country to introduce legally binding net zero emissions targets. Since then, we have overachieved against the first, second and third carbon budgets, and we will be setting carbon budget 7 by June 2026, in line with our statutory duties.

Prax Lindsey Oil Refinery

Debate between Michael Shanks and Carla Denyer

Monday 30th June 2025 Commons Chamber

[Michael Shanks]

I should avoid straying into taxation policy, which is not in my brief. However, I will say that we are doing everything we can to issue a speedy response to the consultation on the future of energy in the North sea, which is all about how we strategically plan the future of oil and gas in this country to ensure that we are building up the future industries at the same time as supporting existing oil and gas supply chains and jobs, and we are moving that work forward.

Let me be clear about what the official receiver does. The official receiver is in post with statutory duties, but that is not in the same bucket as nationalising an industry. It would not be right for the Government to underwrite failing businesses, but we have a responsibility to ensure that an active refinery is wound down in a way that is safe, or that we can find a buyer to continue it.

[Carla Denyer (Bristol Central) (Green)]

I stand in solidarity with the workers in the oil industry who are facing such uncertainty and fear. This incident illustrates perfectly why a carefully managed worker-led transition away from oil and gas is so desperately needed to avoid a chaotic collapse in which workers pay the price. Will the Minister agree to implement my Energy and Employment Rights Bill, whose proposals include the publication of a plan for the redeployment and retraining of oil and gas workers, paid for by oil and gas companies across the industry rather than piece by piece and crisis by crisis?

[Michael Shanks]

I do not agree with the hon. Lady’s proposed piece of legislation, so I will not be supporting it. I think that that is the wrong approach, although she has highlighted the right problem. We are moving as quickly as possible to plan the transition properly, although we should have been doing that many years ago when it started, and as a result we have lost a third of the workforce in the past 10 years. More than 70,000 people have lost their jobs because we failed to plan for this.

I recognise the problem that the hon. Lady has described, but I think that the answer is for us to do two things: to manage the existing fields and support the industry for the lifetime of those fields, and to build up, at speed, investment in the industries that come next. In the spending review the Government supported industries in respect of carbon capture and storage and hydrogen, and, of course, significant investments in the supply chain through Great British Energy to ensure that we are building infrastructure in this country again and securing the jobs that come with it. The transition is important, and we are doing all that we can to ensure that workers are at the heart of it.

Oral Answers to Questions

Debate between Michael Shanks and Carla Denyer

Tuesday 10th June 2025 Commons Chamber

[Michael Shanks]

My hon. Friend is absolutely right, representing, as he does, a beautiful part of Scotland and one with huge potential for such schemes. That is why Great British Energy announced £4 million of funding for community energy projects in Scotland, working with the Scottish Government to drive those forward. We see, as my hon. Friend rightly points out, the huge benefits not just of delivering clean power, but of the social and economic value for the communities that host it. We are clear that community-owned energy has huge untapped potential and huge benefits for communities. We want to see much more of it, and Great British Energy will help deliver it.

[Carla Denyer (Bristol Central) (Green)]

Happy birthday, Mr Speaker. I thank the Minister for his response on reducing the reliance on fossil fuels; no more backing for oil and gas is essential for protecting our children’s futures. However, that positive change requires a plan to future-proof British industries that works for everyone, particularly those who are currently working in those high-carbon sectors. Will the Minister and his colleagues commit to publishing an energy jobs plan for how those workers can be supported in that transition, particularly around being provided with retraining opportunities?

[Michael Shanks]

We consulted on a detailed plan around the future of energy in the North sea, which includes a detailed section on workforce planning. I am sure the hon. Lady was able to submit a response to that consultation, and we will look carefully at her views. We take the question of workforce incredibly seriously. Jobs will be created right across the clean power mission, including in the biggest upgrade to the transmission infrastructure that we have seen in this country for many years, much of which her party seems to oppose.

Rosebank and Jackdaw Oilfields

Debate between Michael Shanks and Carla Denyer

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

My hon. Friend is right to make the point that climate change is not a future threat but a present reality. This year alone there have been a number of examples around the world of that present reality already having a huge and devastating impact on people’s lives.

On the balance that we want to strike, yes, the oil and gas industry is important to our economy and to our energy mix, but the long-term future requires us to move towards clean power. Even if gas is extracted from the North sea, it does not help with consumer bills in this country, because it is traded on an open market to the highest bidder and sold by private companies. This is not a nationalised industry—it is owned by private companies, and gas is extracted by private companies and sold by private companies—and consumers in this country do not benefit from their gas coming from abroad or from the North sea.

[Carla Denyer (Bristol Central) (Green)]

If the Minister will not comment on Rosebank or Jackdaw because of the threat of legal appeals, will he at least confirm that his Government will put a stop to extraction from a reported 13 new oil and gas fields that received licences from the previous Government but are still awaiting their final consents? I believe that they are not subject to the restrictions that cause him not to want to comment on Rosebank and Jackdaw.

[Michael Shanks]

To be clear, I am not suggesting that I cannot comment because of particular legal action. My Department will have responsibility for making the decisions, and it would be wrong for me to prejudice that process by giving my view on those applications in Parliament or anywhere else. That is entirely how such applications end up back in court, and that is what I am determined to avoid.

We clearly outlined the question of licensing at the election: we will not issue new licences to explore new fields, existing licences will be honoured, and we will not remove licences from fields that already have a licence. However, consents—the point at which extraction takes place—must take into account climate tests, and not least the compatibility test laid down by the Supreme Court. Any applications now or in future must take account of that.

Biomass Generation

Debate between Michael Shanks and Carla Denyer

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

I can give my hon. Friend that assurance. We have significantly reduced the ability of Drax to make profits, but we have also ensured that if there are excess profits, they are clawed back on behalf of the British people. The additional rates of 30% and 60% in the mechanism that we have designed will ensure that any unexpected profits are clawed back. That was not the case under the eight previous Energy Ministers in the previous Government who signed off deals on Drax year after year. This is a new way of operating that protects our energy security, as well as protecting the hard-working people of this country.

[Carla Denyer (Bristol Central) (Green)]

Drax is a clean energy scam that has been handed £6 billion by successive Conservative Ministers since 2012, when that money should have been spent on getting energy bills down. The Minister rightly cites past excess profits and I believe he said specifically that the new contract will allow Government to claw them back. Will the contract allow clawback of previous excess profits and remedy the past misspending of public money? Or will the clawback apply only as we go forward into the future, in which case that is still throwing good money after bad, just slightly less of it?

[Michael Shanks]

We do not have a mechanism to claw back past profits from any company—that is not something that Governments are able to do. What we can do is move forward with a fair system that reduces the subsidy considerably, and has excess profit mechanisms and a windfall tax in place to ensure that if the company generates additional profits, we can claw that back for the British public, which is important. The level that we have agreed in the deal brings the subsidy down to a considerably lower level—half what it was under the previous Government.

Making Britain a Clean Energy Superpower

Debate between Michael Shanks and Carla Denyer

Friday 26th July 2024 Commons Chamber

[Michael Shanks]

My hon. Friend raises a very important point. The Department is reviewing the NAO report at the moment. This area will need investment, but we also need a concerted effort to understand what some of the barriers are. It is very clear that carbon capture and storage will be a critical part of the North sea infrastructure in the future, so we are taking those issues very seriously.

[Carla Denyer (Bristol Central) (Green)]

I very much welcome much of what the Minister has said in this announcement, including on the need for a just transition for those working in the oil and gas sector. However, before the election, the Government made a commitment to end new oil and gas licences, although they are still planning to allow the new Rosebank oil field to open, despite it being connected to a level of carbon emissions that we simply cannot allow in this country. I have two questions about the future of oil and gas. First, will the Minister confirm how and when the ending of new oil and gas licences will happen? Secondly, will the Government reconsider the opening of the disastrous Rosebank oil and gas field?

[Michael Shanks]

I was hopeful that that was going to be a very positive question, but then we got to a “however”. I thank the hon. Lady for her support of what I have said so far. North sea licensing is an important issue. We were clear throughout the election that we do not intend to issue any further licences in the North sea. We are looking at how exactly that will come into force, and a lot of detailed work is going on because we want to give assurances to the industry.

On the question of Rosebank and some of those other fields, we have said that we will not bring to an end any of the licences that are currently in place. I cannot speak on some of the particular issues, because there are, of course, cases before the courts, but we will come back to the House in due course to set out the detail. What is important is that we have said that we do not want any new licences in the North sea and we stand by that commitment. We now want to work out a detailed plan, so that that just transition, to which the hon. Lady rightly referred, can come into effect.

I wish to finish on the warm homes plan, which the hon. Member for North Herefordshire (Ellie Chowns) mentioned earlier and is so committed to supporting, and we are grateful to her for that. It will invest £13.2 billion in clean heat and energy efficiency over the lifetime of this Parliament, doubling the previously planned investment to upgrade 5 million homes, with grants and low-interest loans to support investment in insulation, low-carbon heating and other home improvements.

The latest Government figures show that 3 million households in England are in fuel poverty. In the private rented sector, the figure is one in four. Shamefully, the last Government abandoned their commitment to get those homes up to decent standards of energy efficiency, but we will not abandon tenants. We will ensure that homes in the private rented sector meet minimum energy standards by 2030, saving renters hundreds of pounds a year.

--- Later in debate ---

[Michael Shanks]

rose—

[Carla Denyer]

Will the Minister give way?

[Michael Shanks]

I will make some progress, because I have only four minutes. If I have time, I will come back to the hon. Lady.

The hon. Gentleman has repeated the point about food insecurity, despite me just saying what the National Farmers Union—which I think is an expert on this topic—has said about it. He has also made a point about the amount of infrastructure in one given area, which is why it is really important that we co-ordinate that infrastructure much better than we do at the moment. That is why the spatial energy plan is so important; the previous Government commenced that work, and we will continue it, because we need a holistic view of all this energy infrastructure so that individual communities do not become saturated with one particular type of infrastructure.

However, I say gently to all hon. Members that at some point we have to accept that some of that infrastructure is nationally important and will have to be sited somewhere. Even if we have offshore cables, that infrastructure, by its very nature, has to come onshore at some point. There will have to be a recognition of the need for infrastructure in communities, but I take the point about the importance of it being well planned.

[Michael Shanks]

I will first give way briefly to the hon. Member for Bristol Central (Carla Denyer).

[Carla Denyer]

The hon. Member for Mid Buckinghamshire (Greg Smith) raised a concern about solar threatening our ability to grow our own food in this country. I respectfully suggest that he checks out the recent research by Exeter University, which shows that we could increase the amount of renewable energy we generate in this country 13 times over using, I believe, less than 3% of the UK’s land, and none of the highest-grade agricultural land—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call the Minister.