Energy Bill [Lords] — House of Commons, 2016-01-18
Topic: Energy
David Mowat (Conservative, Centre-right): It is a pleasure to follow the hon. Member for Brighton, Pavilion (Caroline Lucas). It will not surprise the House to learn that there was not one paragraph in her remarks with which I agreed. [Interruption.] I am sure that she will wear my words proudly like a badge of honour We should remember why we are all here tonight, because, with a few exceptions, we have not really addressed the main purpose of this Bill, which was to implement the Wood review. That is why the Bill was initially introduced. That review, compiled by Sir Ian Wood, was very necessary as it looked to create a more participative and sharing environment in the North sea over the last decades of its life. At the time, the life of the North sea looked longer than it does now. We should recall that, over the past two decades, this country has had two world-class industries—banking, and oil and gas. The latter has been centred in Aberdeen and has made a massive contribution to the Exchequer, to jobs and to our prosperity. The situation that it finds itself in now—I think the House is a little sanguine about this—is worse than some of the speeches have implied Right now, the operating costs—not the development costs or the exploration costs—in the North sea are round about $28 to $30 a barrel. That is where the world oil price is now, which implies that, unless something changes, not only will we not develop new oilfields, but we will struggle at current oil prices to keep operating the platforms we already have and our current activities. It behoves this House to sort that out and do what it can. I do not think that the Wood review will make a big enough difference to make a big enough impact, but let us remember that there are 475 installations in the North sea that have to be decommissioned in the next few decades, 10,000 km of pipeline and 5,000 wells. The industry employs nearly 400,000 people, and it does not employ them all in Aberdeen. When I knock on doors in Warrington and speak to people, I ask where they are working. The answer is often that they work offshore or in some part of the supply chain. Every Member here will find that many of their constituents work in highly paid jobs in the North sea. It therefore behoves us to get this right We are trying to create a facilitative environment. In the future, for example, when Shell wants to abandon a platform, or no longer use a pipeline that might be useful to Total, it will be prevented from doing so because people will be looking at the bigger picture and trying to maximise the whole basin. That has to be a sensible target, as is the central objective of the Bill, which is the maximisation of economic recovery. That is why I really regret the fact that the Labour party has sought to change that in the Lords, with this point on carbon capture and storage. It is not that we do not agree with CCS, or that it is not important, but, to use the good phrase the hon. Member for Aberdeen South (Callum McCaig) used earlier, we need to have a laser-like focus on the objective of keeping that industry and those 400,000 highly paid jobs in existence for as long as possible. That is why the amendment is wrong; it is not because we do not believe in CCS. [Interruption.] If the shadow Secretary of State wants to intervene on me, she should please do so.