North Sea Oil and Gas Licences: Economic Growth

I am proud of the enormous contribution North sea workers have made to our country. Oil and gas will be an important part of our energy mix for decades to come. We have a workforce who lead the world, and we are determined to secure their long-term future in the energy industry, including oil and gas. The UK Government will soon respond to our recent consultation on supporting the energy transition in the North sea, and I am in the north-east tomorrow, turning on a wind farm and also meeting leaders in the oil and gas sector.

If the UK achieves net zero in 2050, we will still consume about 14 billion barrels of oil and gas a year. We are currently on track to produce 4 billion barrels a year. Will the Secretary of State explain why he prefers to import our energy, rather than produce it ourselves?

The national mission of this Labour Government is to get to clean power by 2030, but that means three things: renewable power, nuclear power, and oil and gas. As I have said already, oil and gas will be with us in the Scottish and UK context for decades to come.

A recent report by Offshore Energies UK showed that if the UK oil and gas basin continued to be used until 2050, it could produce half our oil and gas needs. That would do wonders for jobs in the north-east of Scotland, the north-east economy, our energy security and the energy transition, and it would also bring in £12 billion to the Treasury. On top of that, it would bring in £150 billion of economic growth to the UK, which I am sure everyone in this House and the Government would welcome. Will the Secretary of State please have a word with the Energy Secretary and ask him to stop his policies, which are continuing to ruin our oil and gas sector, and for once back north-east Scotland?

On the oil and gas sector in 2050, I have already mentioned at the Dispatch Box, as has the Secretary of State for Energy Security and Net Zero, that oil and gas will be with us for decades to come, including to 2050.

Does my right hon. Friend agree that there is an opportunity for significant economic growth in Scotland from getting right a just transition from oil and gas to clean power? In my constituency, the landing space at the port of Leith previously used by the oil and gas sector has been transformed by investment from Forth Ports into the largest renewable hub in Scotland. Will he join me in welcoming this investment in Leith, and will he outline how his Department will help secure every job possible in the transition from oil and gas?

I commend my hon. Friend on the work she is doing, particularly in the port of Leith, to ensure that we can have the transition and have it well. She highlights the important thing about this issue and debate: the energy mix requires us to have renewable power and clean energy by 2030, but it also requires us to have nuclear power and oil and gas. The energy mix means that we do it all; it is not either/or.

The Secretary of State rightly outlines how important the oil and gas sector is to Scotland, and to the workers and businesses that rely on it, but if we are to have a truly just transition, we need to invest in new technologies such as hydrogen. Will he, therefore, join me in welcoming the shortlisting of the Selms Muir hydrogen project in Livingston for UK Government support, and outline how that will benefit my constituency?

On 7 April, the UK Government announced that eight Scottish projects had been shortlisted for the next stage of the hydrogen allocation round 2 process. My ministerial colleagues and I look forward to working with industry to deliver our vision for a thriving low-carbon, hydrogen economy in the UK. I commend my hon. Friend on the work he has done in pushing forward the project in his constituency.

I call the shadow Secretary of State.

Does the Secretary of State agree with the Scottish Labour leader, who says there is no question but that there has to be new oil and gas, or does he agree with his colleague the Energy Secretary, who has banned new licences in the North sea and is overseeing the accelerating decline of the UK’s oil and gas basin?

The Energy Secretary and his Department are involved in a consultation on the just transition at the moment, but I go back to my earlier answers: if we are to get clean power by 2030 and to have an energy mix in this country, we require oil and gas, we require renewables and we require nuclear. It is a simple process.

I think we all heard that, and I am sure Anas Sarwar did. The Secretary of State was unable to agree with his own leader in Scotland, and is so in hock to the UK Labour party that he cannot stand up for Scottish workers or the Scottish oil and gas industry. It has always been the party interest over the national interest for Labour, with no notice taken of the Scottish Labour party. Ten years ago, the Scottish Labour party was described by its own leader as being simply the “branch office”. Nothing has changed, has it?

The Government’s sole purpose initially, in their first few months in office, was to clear up the mess that the hon. Gentleman’s party left in this country, including the £22 billion black hole. We will get on with delivering our missions, including clean power by 2030. That is what we are focused on, because that is what is good for jobs, good for bills and good for the environment.