This year the Government have pulled out all the stops to support the oil and gas sector. This includes a fiscal package worth £1.3 billion over five years, £20 million for new seismic surveys and, of course, our core policy of establishing the Oil and Gas Authority, whose job is to maximise economic recovery from the North sea. This is a vital UK industry, and we are totally committed to keeping the UK continental shelf as an attractive destination for investment, securing hundreds of thousands of jobs.

This year the Government have pulled out all the stops to support the oil and gas sector. This includes a fiscal package worth £1.3 billion over five years, £20 million for new seismic surveys and, of course, our core policy of establishing the Oil and Gas Authority, whose job is to maximise economic recovery from the North sea. This is a vital UK industry, and we are totally committed to keeping the UK continental shelf as an attractive destination for investment, securing hundreds of thousands of jobs.

I thank the Minister for her answer, and I do appreciate the work that is being done. However, while the SNP welcomes the support announced in the Budget and what has been done, those who have lost their jobs in the north-east would not necessarily agree with her characterisation. It is essential that we listen to those in the industry who are calling for a strategic review of the fiscal and regulatory regime. What steps are being taken to review the tax rates and the investment allowance?

I thank the Minister for her answer, and I do appreciate the work that is being done. However, while the SNP welcomes the support announced in the Budget and what has been done, those who have lost their jobs in the north-east would not necessarily agree with her characterisation. It is essential that we listen to those in the industry who are calling for a strategic review of the fiscal and regulatory regime. What steps are being taken to review the tax rates and the investment allowance?

As I said, the Treasury has already taken enormous steps through fiscal policy towards the North sea to promote further oil and gas exploration. It is constantly looking at that; in fact, I am having a dinner next week to talk again to the maximising economic recovery group of operators and investors, the Oil and Gas Authority and so on to look at what more we can do, and the Treasury plays its full part in that.

However, we have to be clear that the Oil and Gas Authority is already transforming things such as production costs and the level of co-operation between different operators in the North sea. This is an incredibly important area. We have an inter-ministerial group, which I think is meeting again next week to discuss what more can be done. We are pulling out all the stops for the North sea.

As I said, the Treasury has already taken enormous steps through fiscal policy towards the North sea to promote further oil and gas exploration. It is constantly looking at that; in fact, I am having a dinner next week to talk again to the maximising economic recovery group of operators and investors, the Oil and Gas Authority and so on to look at what more we can do, and the Treasury plays its full part in that.

However, we have to be clear that the Oil and Gas Authority is already transforming things such as production costs and the level of co-operation between different operators in the North sea. This is an incredibly important area. We have an inter-ministerial group, which I think is meeting again next week to discuss what more can be done. We are pulling out all the stops for the North sea.

Although I sympathise with the constituents of the hon. Member for Livingston (Hannah Bardell) who have lost their jobs in the North sea, would not the best thing for them be for us to create new jobs by allowing fracking in Scotland for those very people, with those skills, who have been denied the prospect of such jobs by the hypocrisy of the SNP Government in Scotland?

Although I sympathise with the constituents of the hon. Member for Livingston (Hannah Bardell) who have lost their jobs in the North sea, would not the best thing for them be for us to create new jobs by allowing fracking in Scotland for those very people, with those skills, who have been denied the prospect of such jobs by the hypocrisy of the SNP Government in Scotland?

I absolutely agree. Obviously, it is a matter for the Scottish Government to decide, but one of the policy options I am looking at in my Department, together with the Department for Business, Innovation and Skills, is what more we can do in the energy space for those who have lost their jobs. For example, an experienced offshore engineer may well be able to retrain to work with offshore wind or even nuclear. There are therefore other opportunities in the energy space, and I know the Scottish Government are looking at that. I would certainly be delighted if they wanted to think again about the importance of shale gas.

I absolutely agree. Obviously, it is a matter for the Scottish Government to decide, but one of the policy options I am looking at in my Department, together with the Department for Business, Innovation and Skills, is what more we can do in the energy space for those who have lost their jobs. For example, an experienced offshore engineer may well be able to retrain to work with offshore wind or even nuclear. There are therefore other opportunities in the energy space, and I know the Scottish Government are looking at that. I would certainly be delighted if they wanted to think again about the importance of shale gas.

What steps she is taking to increase exploration for oil and gas in the North Sea.

What steps she is taking to increase exploration for oil and gas in the North Sea.

To ask Her Majesty’s Government who can give permission for oil exploration in the waters off the Falkland Islands.

To ask Her Majesty’s Government who can give permission for oil exploration in the waters off the Falkland Islands.

To ask the Secretary of State for Foreign and Commonwealth Affairs, what recent discussions the Government has had with (a) UK companies and (b) the Malawian government on oil exploration around Lake Malawi.

To ask the Secretary of State for Foreign and Commonwealth Affairs, what recent discussions the Government has had with (a) UK companies and (b) the Malawian government on oil exploration around Lake Malawi.

To ask the Secretary of State for Energy and Climate Change, pursuant to the Answer of 22 April 2016 to Question 34372, whether Petroleum Exploration and Development Licence 189 was one of the licences included in the Deed of Variation dated 4 December 2013, allowing the drilling of 10 wells...

To ask the Secretary of State for Energy and Climate Change, pursuant to the Answer of 22 April 2016 to Question 34372, whether Petroleum Exploration and Development Licence 189 was one of the licences included in the Deed of Variation dated 4 December 2013, allowing the drilling of 10 wells...

To ask the Secretary of State for Energy and Climate Change, whether a deed of variation has been agreed for Petroleum Exploration and Development Licence 189.

To ask the Secretary of State for Energy and Climate Change, whether a deed of variation has been agreed for Petroleum Exploration and Development Licence 189.

To ask the Secretary of State for Energy and Climate Change, whether the firm work commitments relating to Petroleum Exploration and Development Licence 189 which expire on 30 June 2016 have been satisfied.

To ask the Secretary of State for Energy and Climate Change, whether the firm work commitments relating to Petroleum Exploration and Development Licence 189 which expire on 30 June 2016 have been satisfied.

What steps she is taking to support oil and gas exploration and development.

What steps she is taking to support oil and gas exploration and development.

Last week, the Chancellor announced a £1 billion fiscal package to reduce the additional taxes historically imposed on the North sea as well as to introduce targeted measures to encourage investment in exploration, infrastructure and late-life assets. That builds on the Prime Minister’s January announcement of a £20 million package of new investment in exploration, innovation and skills; a new interministerial group; and funding for the £250 million Aberdeen city region deal.

Last week, the Chancellor announced a £1 billion fiscal package to reduce the additional taxes historically imposed on the North sea as well as to introduce targeted measures to encourage investment in exploration, infrastructure and late-life assets. That builds on the Prime Minister’s January announcement of a £20 million package of new investment in exploration, innovation and skills; a new interministerial group; and funding for the £250 million Aberdeen city region deal.

I appreciate the Minister’s answer. Oil & Gas UK, the industry body, has said that we need a fourfold increase in exploration to ensure that the 20 billion barrels that are still there are recoverable. The extra funding for the seismic surveys has been most welcome and we appreciate it. Will the Minister expand a little on what other action the UK Government will take to increase the confidence in the industry and to encourage further exploration?

I appreciate the Minister’s answer. Oil & Gas UK, the industry body, has said that we need a fourfold increase in exploration to ensure that the 20 billion barrels that are still there are recoverable. The extra funding for the seismic surveys has been most welcome and we appreciate it. Will the Minister expand a little on what other action the UK Government will take to increase the confidence in the industry and to encourage further exploration?

The industry is vital for the UK, and we will continue to support it in every way we can. I have already mentioned some of the measures. Perhaps I will just reiterate that, in setting up the Oil and Gas Authority on Sir Ian Wood’s recommendations, we are establishing an authority that is welcome by the industry, that will improve the economic recovery of the sector, and that will ensure that we do not move to early decommissioning, which is all very good news for the North sea sector.

The industry is vital for the UK, and we will continue to support it in every way we can. I have already mentioned some of the measures. Perhaps I will just reiterate that, in setting up the Oil and Gas Authority on Sir Ian Wood’s recommendations, we are establishing an authority that is welcome by the industry, that will improve the economic recovery of the sector, and that will ensure that we do not move to early decommissioning, which is all very good news for the North sea sector.

My Lords, Clause 44 devolves power to the Scottish Parliament for regulation of licences to search and bore for petroleum in the Scottish onshore area. Clause 45 transfers the functions of the Secretary of State to the Scottish Ministers. However, as consideration payable for such licences is to remain reserved...

My Lords, Clause 44 devolves power to the Scottish Parliament for regulation of licences to search and bore for petroleum in the Scottish onshore area. Clause 45 transfers the functions of the Secretary of State to the Scottish Ministers. However, as consideration payable for such licences is to remain reserved...

I beg to move,

That this House has considered the potential role of UK manufacturing in development of onshore oil and gas.

It is a pleasure to serve under your chairmanship, Mr Howarth. Shale gas exploration is a key issue in my constituency. Exploration licences have been granted to five operators in...

I beg to move,

That this House has considered the potential role of UK manufacturing in development of onshore oil and gas.

It is a pleasure to serve under your chairmanship, Mr Howarth. Shale gas exploration is a key issue in my constituency. Exploration licences have been granted to five operators in...

I congratulate the hon. Gentleman on obtaining this important debate. On his point about constituents who have concerns, how do we bring people along and convince them that there is no issue? What job of work needs to be done?

I congratulate the hon. Gentleman on obtaining this important debate. On his point about constituents who have concerns, how do we bring people along and convince them that there is no issue? What job of work needs to be done?

I thank the hon. Gentleman for his intervention. That is a key issue, which I will come to later on in my speech.

The environmental reasons for moving from coal to gas are compelling. Global carbon dioxide emissions will be found to have declined in 2015, principally owing to reduced coal...

I thank the hon. Gentleman for his intervention. That is a key issue, which I will come to later on in my speech.

The environmental reasons for moving from coal to gas are compelling. Global carbon dioxide emissions will be found to have declined in 2015, principally owing to reduced coal...