Oral Answers to Questions

Debate between Tobias Ellwood and Martin Vickers

Tuesday 23rd February 2016 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

7. What assessment his Department has made of the effects of high oil supply and low oil and gas prices on (a) Russia and (b) countries of the Gulf Cooperation Council.

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)]

Brent oil prices are hovering around $30 a barrel—the lowest in 13 years—as a consequence of lower global demand, continued high OPEC production and the resilient production in the USA. GCC countries are taking action. They are, in fact, diversifying their economies and removing subsidies. Historically, about half of the Russian Government’s revenues have come from oil and gas, and Russia’s GDP declined by just under 4% last year.

[Martin Vickers]

Falling oil prices are clearly having a dramatic effect on the economies of many oil-producing countries. I was part of a delegation that visited Saudi Arabia last week, where we heard about what its Government are doing to diversify. What encouragement are our Government giving to other countries to help and support them to diversify, and what opportunities are available to British companies to provide assistance?

[Mr Ellwood]

As my hon. Friend outlines, there are enormous opportunities not just in Saudi Arabia but across the Gulf. We are working on diversification with countries that produce and export hydrocarbons, and helping them with renewables and green energy. Saudi Arabia has also expressed an interest in opening up tourism. Those are important aspects in which Britain can play an important role.