Rosebank and Jackdaw Oilfields

Stephen Flynn Excerpts

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

My hon. Friend is right. We are putting in place a robust and clear process, so that applications can come forward that are in line with what the Supreme Court ruled, and can be decided on their merits. That is important. On UK production, as I have said a number of times and will keep saying, oil and gas will play an incredibly important role in the UK for many years to come. That investment is important, as are the jobs and the skills in the north-east.

My hon. Friend mentions environmental standards. In my past few months in this job, I have been pleased to hear about the huge amount of work that oil and gas companies have undertaken to decarbonise their work through electrification and other means. This question is about the scope 3 emissions, however, that the Supreme Court ruled must be taken into account; that is about the end use of the hydrocarbons as well. We will put in place a process to deal with that.

[Stephen Flynn (Aberdeen South) (SNP)]

Last week, in excess of 400 redundancy letters were issued to workers at Grangemouth, Scotland’s only oil refinery, so perhaps the Minister will start matching his warm words about the just transition with action. On the North sea, what the industry, the investors, the workforce and our journey to net zero require is certainty. He obviously cannot comment on Rosebank and Jackdaw, and so cannot provide the answer that I think we all know is ultimately coming, but can he give us some certainty on when he expects the Government to issue the updated environmental guidance?

[Michael Shanks]

On the right hon. Gentleman’s final point, we are moving as quickly as possible. Having built on what needed to be done about the scope 3 emissions, we introduced the consultation as quickly as possible. We sped up that consultation, and engaged with the industry to make sure that we still got a substantial number of responses. We now have those—it closed two weeks ago, I think—and we are considering them. We will issue information about the process as quickly as possible. I cannot give him an exact date, because we have to analyse the consultation responses; it would be pointless to seek consultation responses and not look at them.

More broadly, the right hon. Gentleman is right to raise the question of Grangemouth. It is, of course, extremely disappointing that Petroineos has decided to cease refining there. For the benefit of the House, I will say that when I arrived in the Department seven months ago, the first thing in my in-tray was Grangemouth’s closure. Of course, that did not arrive in July with the Labour Government’s election—it had been known about for many, many years—but not a single plan had been put in place by the Conservative Government, or the SNP Government in Edinburgh. We moved as quickly as possible to invest in the future, and to give funding to Project Willow to make sure that there was a viable economic future for that site. I wish that I was in power five years ago to start that work, but the Opposition and the SNP failed to do anything about Grangemouth for at least 10 years in which we knew that its situation was precarious. The right hon. Gentleman will have to answer for that.

--- Later in debate ---

[Michael Shanks]

I agree with my hon. Friend—

[Stephen Flynn]

Shocking! No way!

[Michael Shanks]

It is a huge shock, but I do agree with my hon. Friend, because failing to back an £8.3 billion investment in your own constituency seems an odd approach for a Member to take, whatever election they are standing in.

Let me make a broader point about other work that we are taking forward. One of the most important things we did recently was get the skills passport over the line. That is about recognising the huge skillset of offshore oil and gas workers; 90% of those skills are directly transferable into renewables and other technologies. Passporting is about ensuring that those skills and experiences are recognised, so that those skilled workers can find jobs in the renewable industry. This important work is about the transition to the jobs of the future. We announced that Aberdeen will be one of the first skills pilot areas, in recognition of the importance of that skills transition for the whole north-east of Scotland.