Offshore Petroleum Licensing Bill

Debate between Sammy Wilson and Claire Coutinho

2nd reading
Monday 22nd January 2024 Commons Chamber

[Claire Coutinho]

I am glad that the hon. Gentleman asks that question, because the Labour party has been spouting an awful lot of nonsense when it comes to this area. In the UK, we are blessed with the geological gift that is the North sea—it is an incredible national asset. Virtually all the gas produced there goes straight into the UK gas transmission network, and it is equivalent to about 50% of our overall gas needs. When it comes to oil, 90% of what is refined abroad is refined in Europe. We are a net importer overall.

The question that the hon. Gentleman should answer is this: if Europe did not get that oil from the UK, where would he like Europe to get it from—from Russia, or from further afield? That question is at the heart of the Bill. We know that we are going to need oil and gas—where do we want it to come from? Only an ideologue would argue that we are better off importing dirtier fuels from abroad than using what we can produce at home. However, it is not just energy security that dictates that we should use our own resources; the economic case also shows that introducing annual licensing is the right thing to do.

[Sammy Wilson (East Antrim) (DUP)]

Does the right hon. Lady accept that, despite the way in which some Members of this House have tried to rubbish that idea and argue that having our own oil and gas does not mean any energy security for the UK, 88% of the gas that we extract at present stays in the UK? Would they prefer to import that?

[Claire Coutinho]

I thank the right hon. Gentleman for making that point. Not only is it better for energy security, but gas that we bring in from abroad in the form of liquefied natural gas has emissions four times higher, so if Members care about the environment, they should back this Bill.

Domestic oil and gas production adds about £16 billion to the UK economy annually and brings in tens of billions of pounds in tax revenue. To give an example of how that has helped support families with the cost of living, we raised £9 billion in tax revenue last year from the oil and gas sector. That is money that we can use to support families, as we did last winter, paying half the average family’s energy bill, which amounted to roughly £1,500 per household. If we had no oil and gas sector, £9 billion more would have fallen on taxpayers’ shoulders. Why should we concede that tax revenue to other countries? What possible benefit could the British public feel from billions of pounds in tax revenue that could be raised here being sent abroad, all to import fuel with higher emissions?

I now turn to perhaps the most important reason to back this Bill: the workers. There are 200,000 people supported by the sector, in communities such as those in Aberdeen, Grimsby and the north-east of England, and including 93,000 people in Scotland, over 10,000 people in Yorkshire and the Humber, and 14,000 people in the north-west.

Net Zero by 2050

Debate between Sammy Wilson and Claire Coutinho

Monday 16th October 2023 Commons Chamber

[Claire Coutinho]

The hon. Gentleman is right to point out that we spent £40 billion last year helping people with their energy bills, paying on average half of people’s energy bills to support them through that difficult time. On insulation, I would say that when we came into power, 14% of homes were energy efficient, and now that figure is 50%. We are spending £6 billion in this Parliament, a further £6 billion to 2028 and £5 billion through the energy company obligation and the Great British Insulation Scheme to make sure that our homes are energy efficient.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the Government’s belated recognition that net zero policies are costing individuals in their pockets, costing jobs and of course producing huge profits for the eco industry. But is the Secretary of State not concerned that, by maintaining the legal target for 2050, she hands a weapon to those who want to use the judicial review mechanism either to delay or to stop important decisions on airport expansion, new roads and oil and gas licences—delaying even some of the policies that she says today she wants to delay to save people money?

[Claire Coutinho]

We are confident that we can meet those targets, and we see opportunities in the transition ahead of us—we see jobs, investment and opportunities to export British products around the world. That is what I will focus on in this job to ensure that we make the most of the energy transition and that it benefits all parts of our country. We also want to do that in a sensible way that protects families and household incomes.