Offshore Petroleum Licensing Bill

Debate between Richard Foord and Caroline Lucas

2nd reading
Monday 22nd January 2024 Commons Chamber

[Caroline Lucas (Brighton, Pavilion) (Green)]

It is a pleasure to follow the hon. Member for Nottingham East (Nadia Whittome). It was slightly less of a pleasure to listen to the right hon. Member for East Antrim (Sammy Wilson); I want to say a few words about the case that he made. It reaches new depths to suggest that the poorest people in the country will somehow be better off if we continue exploiting more oil and gas when clearly new and existing oil and gas are so expensive. He cited a comment by Siemens about the expensiveness of renewables, but that is precisely because they are linked to the price of gas. That is why we need to reform the totally out of date electricity and gas system that we have in this country.

It tells us all we need to know about this cynical and failing Government that the legislation they chose to debate first in 2024 was a Bill to mandate the annual licensing of oil and gas products in the North sea; not legislation that rises to the immediate challenges that we face as a society—from the cost of living scandal, which sees families unable to meet their basic needs, to the planetary emergency rapidly unfolding before our eyes—but instead a Bill that is frankly no more than a political stunt at home, yet at the same time a very dangerous signal to other countries abroad of a UK doubling down on the fossil fuel economy.

The reality, as many have said, is that the Bill is entirely redundant, with even the North Sea Transition Authority expressing its “unanimous” view that it is not needed. As the Minister knows perfectly well, there have been annual licensing rounds for most of the past decade, driven by the frankly obscene duty to maximise the economic recovery of UK petroleum. Despite the hundreds of licences that have been issued in that time, a paltry 16 days’ worth of gas has been produced. As others have said, it has been estimated that, between now and 2050, new licences would provide the equivalent of just four days’ worth of gas each year, so it is hardly the energy security that we have been promised and that we have heard so much about from the Conservative Benches over the past three or four hours. Of course, any oil and gas, which is extracted, will be owned by companies and sold on the international market to the highest bidder—unless the Government, unbeknown to us, have in mind the renationalisation of energy, which would be a very interesting conversation to have, but when I last checked, that was not their policy.

This oil and gas in the North sea does not belong to the Government and it will not bring down bills. Let us not forget either that 80% of UK oil is currently exported, as was the equivalent of more than 60% of gross gas production last year.

[Richard Foord (Tiverton and Honiton) (LD)]

I am grateful to the hon. Member for giving way. One such example is Gazprom International UK, which continued to produce gas from the North sea last year. This subsidiary company paid a €1.7 million dividend in June 2023. Does she not think it hypocritical of this Conservative Government to talk about this Bill in terms of national security, while, simultaneously, allowing a Russian energy giant to extract gas from the North sea and pay taxes in Moscow?

[Caroline Lucas]

I thank the hon. Member for his point and it is incredibly well made. I shall say a little more on that subject very shortly.

Essentially, this Bill is nothing more than reckless political theatre. It is nothing more than a cynical attempt to stoke yet more division and weaponise much-needed climate action in some misguided sense that, somehow, this will save the Prime Minister’s skin.

While the Bill serves at home to highlight the impotence of the Government, sadly its international impact is far-reaching. Despite the Prime Minister’s fairly evidence-free claim at COP28 that the UK is leading by example, the reality is that creating a climate culture war, scrapping vital policies and issuing new fossil fuel licences is the very opposite of climate leadership. The Bill sends a dangerous signal and undermines global efforts to address the climate emergency by hampering diplomacy and legitimising extraction in other countries. As Lord Deben, former chair of the Climate Change Committee, said:

“How can we ask other nations not to expand the fossil fuel production if we start doing it ourselves?”

It is frankly a scandal that the UK is among just five countries in the global north that are responsible for more than half the planned expansion of new oil and gas fields up to 2050.

While Ministers like to claim that, even with continued licensing, production from the UK continental shelf is projected to decline at 7% annually, what matters is not whether we are producing less relative to some previous time but whether the oil and gas that we are producing now is compatible with our climate goals. Clearly it is not, with the UN production gap report warning that Governments already plan to produce far more than double the amount of fossil fuels in 2030 than would be consistent with limiting heating to 1.5°. The Government’s defence of the Bill, and of the continued licensing of more oil and gas in the North sea as a whole, implies that somehow the UK operates in a vacuum, and domestic decisions have no bearing on our ability to meet our international climate targets. That clearly is not the case. It is no surprise, then, that Professor Piers Forster, the interim chair of the Climate Change Committee, has said:

“UK oil and gas consumption needs to fall by over 80% to meet UK targets. This and Cop decision makes further licensing inconsistent with climate goals.”

When talking about inconsistency with our climate goals, we could also talk about hypocrisy. Since a climate emergency was declared in this very Chamber in 2019, no fewer than 17 new fields have been approved: Laverda, Barnacle, Cadet, Sillimanite, Blythe, Elgood, Southwark, Evelyn, Abigail, Jackdaw, Tommeliten, Talbot, Teal West, Murlach, Alwyn East, Rosebank, and most recently Victory. Mentioning Rosebank gives me an opportunity to come back to an issue that has been touched on a few times tonight: the scale of fossil fuel subsidies. We have heard a load of guff from Conservative Members about the importance of tax revenues from oil and gas, yet look at the amount of money we are giving to the oil and gas industry. The hon. Member for Tiverton and Honiton (Richard Foord) spoke about tax revenues going to Russia. We could also point out that the UK taxpayer will hand over no less than the equivalent of £3.75 billion to Equinor to develop the Rosebank site, because of the massive loophole in the windfall tax that means that for every £100 invested, £91.40 can be claimed back. A bit of clarity on these issues would help.

Section 20 of the Environment Act 2021 requires that a statement be made on the front of the Bill saying whether it is in line with other environmental laws. The Secretary of State claims in her statement that

“the Bill will not have the effect of reducing the level of environmental protection provided for by any existing environmental law.”

To me, that seems extraordinary because, even if one believed that the carbon intensity test would make a difference, the annual licensing rounds under the Bill could easily cancel out any predicted carbon savings and lead to an overall increase in emissions. I hope that she will tell us what modelling was undertaken to inform her section 20 statement.

Looking at its content more closely, the Bill proposes two so-called tests, which are set so ludicrously low they are impossible to fail. The first is the carbon intensity test, which is met if the carbon intensity of domestically produced gas is lower than that of imported liquefied natural gas. That test not only ignores the fact that more than half our gas imports come from Norway—via a pipeline, as we have established—where gas production is half as polluting as in the UK, but in only considering gas, it fails to take account of the fact that 70% of remaining North sea oil reserves are oil. In any case, comparing the carbon intensity at the point of production rather than combustion exaggerates the difference between different sources, given that the vast majority of emissions are produced when any oil or gas is burned. In other words, they are scope 3 emissions, which remain unaccounted for. The second test is the net importer test, which will be met if the amount of oil and gas produced in the UK is less than the UK’s demand for oil and gas. Surely that question would be much better addressed by reducing demand rather than producing more planet-heating oil and gas, yet the Government seem incapable of pursuing demand reduction in any meaningful way.

What should the Government do instead? If they were actually interested in cutting household bills and delivering energy security, they would be working to get us off expensive gas for good, rather than continuing to tether us to volatile international markets. The National Infrastructure Commission has been really clear:

“Reliance on fossil fuels means exposure to geopolitical shocks that impact the price of these internationally traded commodities.”

In its 2022 energy outlook report, the IEA reported that a higher share of renewables correlated with lower electricity prices in response to the energy crisis, with energy efficiency and heat electrification providing an important buffer for households. At a time when, as we have heard, 6 million families in the UK are living in fuel poverty this winter, we have to ask why the Government are doubling down on the very thing at the heart of the crisis.

The Government should instead be delivering a meaningful just transition that genuinely meets the needs of workers and communities, rather than temporarily propping up insecure jobs that we know will not exist in years to come. We have heard the rhetoric from Conservative Members pretending that those of us who want to accelerate a transition to a greener economy do not have people’s jobs in mind. That is totally untrue; it is precisely because we care about people’s jobs that we want them to have sustainable jobs into the future—good-quality, decent jobs—and are not pretending that draining resources in the North sea will somehow provide a sustainable livelihood in years to come.

There should be a massive scaling-up of renewables, and we should back cheap and abundant energy sources such as onshore wind, for which a grand total of zero applications have been submitted since planning rules were changed in September. There should be a nationwide, street-by-street energy efficiency programme to ensure that families have warm homes for the long term, rather than scrapping the upgrade in standards of private rented homes, which according to the Climate Change Committee could have saved tenants £250 a year, even at so-called normal prices let alone at a time when prices are spiralling. Again, what an indictment of the Government. Remember the green deal back in 2012? The Government set the interest rate so ridiculously high, as we all said at the time, that unsurprisingly the whole plan collapsed. Those homes were not insulated and plenty of energy companies, including in my constituency, went bust as a result. The Government are incompetent as well as totally ideologically driven.

The Government should be properly taxing the filthy profits of oil and gas companies rather than foisting the cost of new developments on to the taxpayer, and they should urgently withdraw from the dangerous energy charter treaty, which—it beggars belief—allows us to be sued by fossil fuel companies. A fairer and greener energy system is entirely possible, but it requires both imagination and investment—two qualities that I do not associate with the Government. The legislation makes it painfully clear that the Government are wilfully ignoring the lessons of both the climate and the energy crises, and are once again privileging their own interests above the wellbeing of people and planet. The Bill sends exactly the wrong signal at the wrong time, and actively undermines global efforts to address the climate emergency by hampering diplomacy and giving the green light to further extraction right around the world. It is not what leadership looks like, it is not what this moment demands, and all our constituents deserve better.

Rosebank Oilfield: Environmental Impacts

Debate between Richard Foord and Caroline Lucas

Wednesday 28th June 2023 Westminster Hall

[Richard Foord (Tiverton and Honiton) (LD)]

On the point about the use of renewable electricity for the extraction of oil, does the hon. Lady agree that it is disingenuous for lobby groups to talk about oilfields potentially saving carbon dioxide emissions? Does she also agree that comparing carbon emissions in the extraction of oil in the UK with carbon emissions elsewhere is both a red herring and greenwashing?

[Caroline Lucas]

The hon. Member will not be surprised to hear that I do indeed agree. Unfortunately, an awful lot of greenwashing goes on when it comes to this debate.

Secondly, it is not just the UK that must reach net zero by 2050 if we are to avoid the worst effects of global heating. According to the sixth assessment report by the Intergovernmental Panel on Climate Change, the whole world must be there by 2050 to stay below 1.5°. If we are to act in accordance with the principle of common but differentiated responsibilities—which was, let us remember, a central tenet of the Paris agreement—it is clear that the UK, as one of the first countries to industrialise using fossil fuels, must go much further and faster than many others.

Thirdly, the Government’s so-called climate checkpoint fails to take account of scope 3 emissions. In other words, the checkpoint simply ignores all the emissions that are produced when the oil and gas are actually burned, so it is no safeguard at all.

Finally, although Ministers try to ignore our global climate reality, the truth is that there is already far more coal, oil and gas in existing developments than can be safely burned if we are to have a liveable future. According to the UN report “The Production Gap”, Governments already

“plan to produce more than double the amount of fossil fuels in 2030”

that would be consistent with staying below 1.5°. The International Energy Agency has made it clear that there can be no more oil and gas developments if we are to limit global temperatures to that critical threshold. Global scientists pretty much agree, yet we have a Government who somehow think they know better than hundreds of UK scientists and the vast majority of thousands of global scientists.

Protecting and Restoring Nature: COP15 and Beyond

Debate between Richard Foord and Caroline Lucas

Thursday 14th July 2022 Commons Chamber

[Caroline Lucas]

I am hugely grateful to all hon. and right hon. Members who have taken part in this debate. What we have not had in quantity of contributions, we have certainly more than made up for in quality. One theme that has come out is individuals’ love for nature. The right hon. Member for Leeds Central (Hilary Benn) talked about how it is central to our souls—nothing less. That, to me, is hugely important. I am struck by the words of the US writer Richard Louv, who said:

“We cannot protect something we do not love, we cannot love what we do not know”.

Therefore, getting more access for young people and all of us to nature, the kind of young people the right hon. Member for Islington North (Jeremy Corbyn) spoke about, is absolutely crucial to protecting it.

While we talked about our love for nature, we had some hard economics, too. I pay particular tribute to the hon. Member for Brent North (Barry Gardiner) for reminding us that we will not have the transformative change we need unless we change our economic system.

I am very grateful for the Minister’s response and for his commitment to work for the success of COP15 and, in particular, the funding necessary to make it a success. He explained why he cannot commit future Ministers to future actions, which I completely understand. What I hope he can do is undertake to urge his Conservative leadership colleagues not to step away from net zero. There have been some deeply worrying statements in the last few days around that. I hope he will play a role in trying to urge them not to put net zero in question.

A number of questions still remain unanswered about the detail of the UK’s negotiating objectives, for example its position on the global ratchet when it comes to policy ambition and on increasing our domestic environmental targets in the Environment Act 2021. We need to be more ambitious at home if we are to have credible leadership abroad. I look forward to the opportunity for further conversations with the Minister over the coming weeks and months to ensure we can make a success of COP15. All of us have said, from every angle of this House, how important that is. It has been underlined by today’s debate and I am very grateful to the Backbench Business Committee for allowing me to hold it.

Question put and agreed to.

Resolved,

That this House has considered protecting and restoring nature at COP15 and beyond.

[Richard Foord (Tiverton and Honiton) (LD)]

On a point of order, Mr Deputy Speaker. The Health Service Journal is reporting that the Minister of State, Department for Health and Social Care, the hon. Member for Lewes (Maria Caulfield) incorrectly told the House yesterday that a contract was in place to provide surge capacity for ambulance services, despite the contract not having been awarded yet. Have you, Mr Deputy Speaker, had any notification from the Minister that she plans to come to the House to clarify the record?