Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 16th January 2024 Commons Chamber

[Graham Stuart]

My right hon. Friend is absolutely right. This is a declining basin, and it is so important as we go through the transition that we do not lose the skills and jobs of those people who are providing the oil and gas on which we currently rely. No country is doing more to decarbonise than we are, but we will continue to use oil and gas for decades to come. As our production falls even more quickly than our demand, and even more quickly than is required globally, it is essential that we support the industry, send the signal that my right hon. Friend suggested, and rebut the attitude of the Labour party, which would destroy those jobs, lose the tax and put up emissions.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the fact that, belatedly, the Government have accepted that, despite their net-zero policies, the oil and gas industry is important for the future in the United Kingdom. Does the Minister recognise that to benefit from the oil and gas in the North sea that will be released by the new licensing regime, we need to have refinery capacity? There has been little, if any, investment in refinery capacity, because of the uncertainty of the future and the carbon taxes placed on it. When will the Minister address that issue to ensure that we get the full benefit of the oil and gas that we extract from our shores?

[Graham Stuart]

Effectively, we are part of a European market. Most of the gas that we produce is consumed in the United Kingdom, and most of our oil is refined elsewhere in Europe and contributes to European and UK energy security, as it is converted into product. It is one joined-up market for historical reasons, and our refineries are used predominantly for oil that comes from abroad, as opposed to that which comes from the North sea. These are multi-decadal investments, and as part of a managed decline in demand we will see refinery capacity reduced over time. We are doing absolutely everything to do this in the most sensible manner possible, and it is a shame that Labour Members would have us import more. They are all in favour of oil and gas jobs, so long as they are not in the UK, and they will bring in foreign imports from which we will get no jobs and no tax, with higher emissions. It makes no sense, and only the right hon. Member for Doncaster North (Edward Miliband) could champion such an insane policy.