North Sea Oil and Gas

Pippa Heylings Excerpts

Wednesday 24th June 2026 Westminster Hall

[Pippa Heylings (South Cambridgeshire) (LD)]

It is a pleasure to serve under your chairship, Ms Furniss. I am sure that the whole country joins you in finding it difficult to deal with this heat and to perform to the best of one’s ability. I am thinking about those students who are sitting GCSE and A-level exams this week.

I thank the hon. Member for Bromsgrove (Bradley Thomas) for bringing this debate to Westminster Hall. We have heard how seriously we are considering our current and future jobs for oil and gas workers in the North sea and in the new renewable energy sector. Families across the country and businesses are struggling with skyrocketing energy bills. We are also seeing hits to our economy and avoidable deaths from a warming planet. This week, we have had the first red alert under our new UK Health Security Agency alert system, alerting us to the climate impacts of global warming.

Less than a month ago, families and households received the news that, once again, their energy bills are going up, this time by an average of 13.5% or £221 a year—what we could call a Trump tax. We know that rising energy bills are one of the biggest worries facing households and businesses. They bring stress, anxiety and uncertainty, and they are plunging more and more people into unaffordable debt. Right now, energy debt in the country is about £5 billion, and it is due to rise exponentially. Also, our businesses are seeing some of the highest industrial energy prices, making us as a country among the least competitive, which is hitting our economy. Families, too, will now be bracing themselves for the next price cap announcement and wondering how much they will have to pay through the colder winter months. The reason for these spikes in our energy bills is clear: our dependence on the rollercoaster of volatile global fossil fuel markets.

The energy crisis is an oil and gas crisis. Just as with Russia’s invasion of Ukraine, the middle east conflict shows how a single geopolitical escalation can send energy prices soaring, leaving households and businesses exposed to shocks entirely beyond their control. That is not inevitable. In Spain, an increase in renewables has seen the Spanish electricity market go from the 10th most expensive in the EU to among the cheapest.

But as we have heard in this debate, a transition will not happen without a careful, concentrated and accelerated focus on the oil and gas we need today, on the renewables that we need to scale up, on the infrastructure, as my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) mentioned, on the jobs and, as the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) mentioned, on the culture and identity involved in this change.

We need a serious and honest debate about this transition. Even proponents of the “Drill, baby, drill” argument from the Conservatives and Reform have recognised that further expansion of oil and gas production in the North sea, a mature basin from which we have already extracted 93%, will do nothing to cut people’s energy bills. Any oil and gas extracted is sold on the international market to the highest bidder.

[Mr Carmichael]

My hon. Friend has come to a point of some interest. We talk about oil and gas as if they are one commodity, but they are very different things, of course, and she will know that the gas that is to be extracted in the North sea and also to the west of Shetland is brought ashore and goes straight into the UK market. The point about a global market and a global price for oil is well made, but oil and gas are different.

[Pippa Heylings]

I thank my right hon. Friend. We have many discussions about this issue, and he is absolutely right to point out that it is complex. We know that if we extract beyond what has already been licensed, the UK can contribute only a tiny fraction of global supply, particularly of oil, even if new licences are given. It will not cut bills, and it will not shield us from global price shocks.

The next argument is about UK energy security. On that point, Members from across the House have admitted that most of the UK’s recoverable North sea oil and gas has already been extracted.

[Mr Carmichael]

I am keen to emphasise the great breadth of agreement between myself and my hon. Friend on this matter. She is absolutely right about the future of jobs. She knows that I chair the all-party parliamentary group on marine energy. Marine renewable technology is developing and will be able to provide jobs for my constituents and others in the future, but it is important that we keep the critical mass of the oil and gas industry, because if these people lose their jobs now, they are not going to sit on their hands and wait for AR9, AR10, AR11 or whenever it is that we can actually get commercially exploitable marine renewable energy.

[Pippa Heylings]

Once again, I thank my right hon. Friend; I will be coming on to exactly that point.

For more than a decade, the previous Government had a policy of maximising North sea oil and gas extraction and of removing and reducing taxes on oil and gas companies. With the issuing of hundreds of new licences in a maturing basin, what we have seen produced after 14 years is little more than a month’s worth of gas to date.

Energy security is national security. We know, and have admitted in the debate, that we have to reduce our dependency on gas and come to a transition. The Liberal Democrats recognise not only that we will need oil and gas for decades to come, but that the North sea’s most productive years are behind it. That is why we support a managed and just transition away from North sea oil and gas, with investment in renewables at its heart, and strong support for the workers and communities most affected.

Those working in the North sea are skilled workers. They have kept our lights on and have contributed enormously to our economy. They deserve our support through transition—not just words—and honesty about the future. That is why the Liberal Democrats are calling for the creation of a just transition commission and an acceleration of the clean energy jobs necessary. Under the Conservatives, jobs in the oil and gas industry fell by 70,000, and at that time we did not hear the cries that we hear now about what is happening or how those workers are being supported.

I grew up in Hull, a city that knew the devastation of unmanaged transitions—from coal and from the cod fisheries—and through my father’s work as a GP, I saw the human cost of industries collapsing without a plan. We cannot repeat those mistakes. No community should be left behind. In Hull today, when I go back, I see what success can look like: the manufacture of offshore wind turbines by Siemens; the Humber region pioneering the offshore wind industry; investment creating skilled, well-paid jobs now and for the future. Confederation of British Industry economic data has shown that beyond Hull, across the country, the new green economy underpins the jobs of 1.1 million workers throughout the UK, generating £105 billion in gross value added. That is the model we should be scaling up towards, with our skilled oil and gas workers and the supply chains front and centre of the transition.

Finally, in this sweltering heat, with this first ever red health alert for danger to life from extreme heat, we must recognise the costs of failing to tackle climate change. This week has shown us the future we face if we do not act—lives lost to extreme heat, schools closed, fields parched, transport networks gridlocked and economic costs spiralling. Climate breakdown is a national security threat, driving instability, displacement and economic shocks. It is incumbent on us to do all we can to avoid worsening climate shocks, so we must find a way forward through electrification that balances cheaper energy bills and security of energy supply, and meets our climate commitments.

The future of the North sea plays a vital role in that endeavour of transitioning from being a net exporter of oil and gas in the past to becoming a net exporter of home-grown green energy—as my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) said—again trading in the EU internal electricity market and joining North sea countries in meeting joint offshore wind investment goals, while decarbonising the gas production we will still need for decades to come. I therefore ask the Minister to clarify whether he agrees with the Liberal Democrat proposal: a just transition commission, acceleration of clean energy jobs, and our essential energy guarantee, to ensure that all families have their basic energy needs met.

In addition, the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) talked about the identity and culture of the communities that have to face this transition. That, too, is crucial. The sooner we embrace the transition and the sooner we can deliver a secure and affordable energy system, the sooner we can finally give families the lower, stable bills that they deserve.