Support for North Sea oil and gas Westminster bill
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Banff and Buchan MP David Duguid has backed the UK Government’s bid to support North Sea oil and gas production by introducing legislation that increases confidence and certainty, warning that not doing so will risk workers moving overseas.
The Offshore Petroleum Licensing Bill would require the industry regulator to run annual rounds for new oil and gas licences, subject to stringent new emissions and imports tests.
It received its third reading at Westminster, where the Banff and Buchan MP voted for the bill and spoke of his desire for the UK to increase the number of North Sea oil and gas licences.
Mr Duguid said the move would help the industry to “keep our lights on and economy moving in the short-term, but to lead the world in showing how a successful energy transition to renewables can be done using the same, skilled workforce”.
He also referenced the importance of carbon capture utilisation and storage and underlined the importance of the Acorn Project at St Fergus near Peterhead, which is hoped to be operational by 2027, in the UK’s journey to net zero.
In his speech, Mr Duguid said: “What will also be required to get to net zero are precisely the skills, technologies and supply chains that currently exist, and will no doubt continue to be developed, within the oil and gas industry.
“But those critical elements will no longer be available to us if we shut down our domestic oil and gas industry prematurely.
“That is what would happen if opposing parties had their way – whether it is the SNP’s ‘presumption against new exploration for oil and gas’ or Labour’s ‘just stop oil’ approach.”
He added: “The skills and technologies to deliver net zero are not going to magically appear over the horizon, and the talent and expertise in a defunct oil and gas industry are not going to transfer immediately across to the renewables sector.
“More likely, companies and workers who find themselves squeezed out of the oil and gas industry will simply move overseas to deliver someone else’s energy security, and someone else’s energy transition.”
Mr Duguid continued: “If asked if they support new oil and gas licences some SNP members, and I dare say some Labour members, may find it difficult to commit to a position, particularly when facing their constituents in north-east Scotland.
“But this Conservative Government, and the Scottish Conservatives in particular, have maintained a consistent support for the oil and gas industry, the companies and the tens of thousands employed from right across the UK.
“And we recognise, as this Bill recognises, not just the potential for the people in this industry to keep our lights on and economy moving in the near term, but to lead the world in showing how a successful energy transition from oil and gas to renewables can be done.
“Sadly, all His Majesty’s opposition seems able to offer is to lead the world in virtue signalling.”
