North Sea Oil and Gas

Robert Jenrick Excerpts

Wednesday 9th February 2022 Commons Chamber

[Greg Hands]

I thank the hon. Gentleman for his questions. Of course, he could have made his own UQ application today on this very topic, but let me answer him.

Yes, we are absolutely committed to a zero-carbon energy system. We are committed to a decarbonised power sector by the year 2035, so long as it is consistent with security of supply, as well as being consistent with the net zero strategy to get the UK to net zero by 2050. I have not heard recently whether the Labour party is still committed to getting to net zero by 2030, which I think was in its manifesto at the last election. Perhaps it would be helpful if one day the hon. Gentleman updated us on that really very ambitious target.

On compatibility with action on global emissions, the answer is “Absolutely.” That is why a key part of the North sea transition deal was the climate compatibility checkpoint that we announced just a year ago. The consultation, which closes on 28 February, refers to future licences; the current licences would still need consent from the regulators. Nothing has changed in the Government’s position or in the process. We look forward to responding to the climate compatibility checkpoint consultation in due course.

[Robert Jenrick (Newark) (Con)]

Our commitment to net zero is not in any sense incompatible with making use of our domestic reserves. Otherwise, we will simply be reliant on imported gas from Putin and the Gulf, creating insecurity and greater emissions in the process. If we want our oil and gas companies to invest, we need to provide them with certainty. Will my right hon. Friend reaffirm the principles that I committed to as Exchequer Secretary, as other Treasury Ministers did: fiscal stability and maximising economic recovery in the North sea basin? It is through that combination that we can encourage our world-leading oil and gas companies to invest for the future.

[Greg Hands]

My right hon. Friend was a brilliant Exchequer Secretary.

As a former Treasury Minister, I can say how well he was regarded in Government and in this House for the important work that he did at HM Treasury. He is right: this is not in itself a debate between gas and renewables. The current debate is whether we get the gas that we currently need from the UK continental shelf or import it from abroad. Foreign imports come at a higher price in regard to emissions and our energy insecurity.

It is worth reminding ourselves that 50% of UK gas comes from the UK continental shelf; that is a good position to be in. An additional 30% comes from Norway, which I regard as a very good, stable and secure source. On the investment picture, he is also right—and the Chancellor was absolutely clear on this in his statement on Thursday—on the importance of more investment coming into the North sea, not just for the short term but for the transition going forward.