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Written question asked by Alex Cunningham (Labour) on Wednesday, 25 March 2020, in the House of Commons. It was due for an answer on Tuesday, 21 April 2020. It was answered by Kwasi Kwarteng (Conservative) on Tuesday, 21 April 2020 on behalf of the Department for Business, Energy and Industrial Strategy.

Fossil Fuels: Prices

Question

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking in response to the reduction in global prices of oil and gas to protect the (a) jobs and (b) skills of people working in that industry.

Answer

The Government is closely monitoring developments related to potential impacts on the upstream oil and gas sector from the collapse in the oil price and COVID-19 and is in regular contact with industry and the Oil and Gas Authority. I have held telephone meetings with representatives from the sector including business leaders, trade associations and the Oil and Gas Authority to discuss these issues.

In response, Government has announced an unprecedented financial package to support businesses and has committed to do whatever it takes to get our nation through the impacts of this coronavirus pandemic. This includes a Coronavirus Job Retention Scheme, as well as a host of measures to help businesses in this period with £330bn worth of government backed and guaranteed loans to support businesses across the UK. Additionally, responding to feedback from business, a Coronavirus Large Business Interruption Loan Scheme will ensure that more firms are able to benefit from government-backed support during this difficult time. It will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million.

We know that the offshore oil and gas sector and particularly its supply chain has a key role to play as we move to a net zero economy and we have committed to supporting this energy transition with a transformational Sector Deal.

Secondary information

Type
Written question
Reference
34980
Session
2019-21
Grouped for answer
Yes
Subjects
Oil Natural gas Prices
Link
View this Written question on www.parliament.uk