Question

To ask the Secretary of State for Energy and Climate Change, what his proposals are for maximising North Sea resources within the Infrastructure Bill.

The Government is committed to the rapid implementation of Sir Ian Wood’s recommendations to maximise economic recovery from the UK Continental Shelf. Government has proposed a cIause in the Infrastructure Bill to establish the new principle of Maximising Economic Recovery of UK petroleum into law with an aim to secure and give rise to the maximum amount of economically recoverable petroleum from UK waters. The measure proposes a duty on my rt. hon. Friend the Secretary of State to produce a strategy for allowing this principle to be met, and obligations on him and all Petroleum Licence holders, Operators appointed under those licences and the owners of Upstream Petroleum Infrastructure to act in accordance with that strategy. Government has also proposed a clause to provide a levy-making power to fund a larger, more proactive regulator (to be called the Oil and Gas Authority).

Subsequent legislation will be required to implement the additional regulatory powers the Wood Review recommends and set up the new Authority.