Saudi East-West Oil Pipeline Debate
Full Debate: Read Full DebateTim Farron
Main Page: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)Department Debates - View all Tim Farron's debates with the Department for Energy Security & Net Zero
(1 month, 2 weeks ago)
Commons Chamber(Urgent Question): To ask the Secretary of State for Energy Security and Net Zero if she will make a statement on the implications of the closure of the Saudi east-west oil pipeline for UK energy security, fuel prices and global oil supply, and on the steps the Government are taking in response.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
First, the United Kingdom strongly condemns the Houthis’ decision to resume conflict in Yemen and their recent attacks on Saudi Arabia, including the targeting of civilian and energy infrastructure. We offer our condolences to those injured and affected and stand with Saudi Arabia, the internationally recognised Government of Yemen and our partners in the region.
My right hon. Friend the Foreign Secretary has spoken with his Saudi counterpart, as has the national security adviser. We are closely monitoring the situation as part of our overall response to the situation in the middle east and disruption to the strait of Hormuz. Saudi authorities confirmed over the weekend that the east-west oil pipeline is temporarily closed following an attack on 11 September. The Saudi Government have not yet provided further information on the duration of the closure.
The pipeline enables Saudi crude oil to bypass the strait of Hormuz. Since the start of the middle east conflict, it has been used to reroute a significant share of exports. This temporary pause comes at a time of rising prices, and I know that many in this House and the public will be worried about the potential impacts. Fuel supplies to the UK have remained resilient since the start of the conflict. As people across the country would expect, the Government will mitigate where possible the potential impacts on our economy and our domestic security. We will continue to work closely with industry and the devolved Governments on detailed contingency planning for all events. We are working tirelessly with our international partners to find a permanent solution to the conflict and to minimise the knock-on impact on households. We will keep looking at what more we can do to insulate families from the effect of rising energy bills.
I thank the Minister for his reply. Saudi’s closure of the 1,200 km east-west pipeline is a massive blow. The pipeline allowed Saudi Arabia to export millions of barrels of crude a day, and it has been the key alternative route to the strait of Hormuz since Donald Trump’s war led to its regular closure. The closure has predictably led to further increases in already high oil prices, which stand at $106 a barrel just today. We have reports that Saudi Arabia could exhaust crude available for export within days unless that pipeline resumes operation. The consequences are huge for my constituents and everybody else’s. We are already paying through the nose for fuel as a result of the war in Iran, and they are now being hit by even higher prices because of this closure. Rural communities relying on heating oil are especially vulnerable to shortages and price hikes. The impact on farmers and food production could do further damage to the UK’s food security. The tragic reality is that while the UK will struggle if the pipeline is not reopened, this could mean starvation for millions on the African continent.
The latest crisis puts a further spotlight on our failure as a country to be energy secure. Even those few people who are not yet convinced that climate change is real and needs tackling surely now understand that energy security really matters. Neither Houthi rebels nor Putin nor Iran nor Trump can turn off our waves, wind, sunshine or nuclear industry. It is time for siren voices to stop whining about wokery and start focusing on security. So I ask the Minister, what oil reserves does the United Kingdom have? Will the Government accelerate domestic energy generation? Will they implement a 10p temporary fuel duty cut, and cuts in bus and rail fares, so that people in Cumbria and across the country are not plunged into further hardship as a result of this crisis? What plans does the Minister have to accelerate the warm homes plan, which, sadly, has insulated only 0.3% of the expected homes this year—especially in communities such as mine, where a quarter of the housing stock was built before 1900 and is in need of more bespoke solutions? What will he do to introduce an energy price cap for heating oil, and what extra work is he doing with our allies in the middle east and NATO to ensure that the pipeline reopens as soon as possible?
Martin McCluskey
I will endeavour to answer all the hon. Gentleman’s questions, but if there are any that I do not answer, I will follow up on them in writing.
Let me begin with the discussions that the Government have been having with the Saudi authorities. The Foreign Secretary spoke to the Saudi Foreign Minister on Sunday, and we will keep talking to the Saudi Arabian authorities to understand exactly what the impact of this might be and what the Saudi Arabian Government’s plans are. As the hon. Gentleman will know, we have a diverse and resilient supply of energy in this country, and we continue to stand by that. We are not, at this moment, concerned about the impact on supply for the UK.
The hon. Gentleman asked about heating oil. I think he will know, because we have had conversations about this, that the Government have already provided £53 million for local authorities to assist the people who were particularly hard hit in March, when the cost of heating oil increased significantly. As we go into autumn and the winter, we will, of course, look at what further support might be necessary, but in some local authority areas, the money is not yet anywhere near exhausted, and I encourage local authorities to use the funding that is available to them to support those using heating oil.
The hon. Gentleman made an important point about our reliance on foreign sources of oil and gas. Opposition Members fail to grasp the fact—although they used to grasp it when they were in government—that we need to move away as quickly as possible from the rollercoaster of fossil fuels, and to produce energy in this country, so that we can control the security and the supply.
The hon. Gentleman will know that we have committed £15 billion to the warm homes plan, and have been pushing for more of that funding to reach communities. We are already delivering that through the warm homes local grant and the warm homes social housing fund, and in the coming weeks we will introducing more schemes, enabling people throughout the country to take advantage of that plan.