UK Parliament / Open data

Energy Bill [Lords]

Proceeding contribution from James Cartlidge (Conservative) in the House of Commons on Monday, 18 January 2016. It occurred during Debate on bills on Energy Bill [Lords].

It is a privilege to speak about this Bill and to be asked to serve on the Bill Committee, as well as to follow so many excellent contributions, especially from my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), and my hon. Friend the Member for Hertsmere (Oliver Dowden) who made a passionate defence of the beautiful English countryside.

It is also an honour to follow the hon. Member for Wakefield (Mary Creagh), although I will not attempt to spell or pronounce the age that she said we lived in. She spoke a lot about fuel poverty, but I cannot think of a single measure to help my constituents tackle fuel poverty that even begins to compare with the fact that, with so many people heating their homes with oil tanks, it is now 60% cheaper to fill those tanks than it was a year ago. The same goes for petrol and diesel, although the percentage falls are not as steep. I welcome that fall in oil and diesel prices, particularly for our hauliers who have been so hard hit of late. I was intrigued to hear the hon. Member for Swansea West (Geraint Davies) call on those on the Labour Front Bench to lobby the American Government to curtail shale, so that we can increase oil prices. I would be interested to know what the leader of the Labour party thinks about that policy.

Oil prices are key, and the most important part of this Bill is that it brings forward the Oil and Gas Authority in what is clearly a time of crisis for the industry. Hon. Members have mentioned the cost of oil falling to $29 a barrel. In fact, according to the internet, today it fell to as low as $27.70, and Ladbrokes are now offering odds of 10:11 on its falling to below $25 in the coming weeks, and 10:1 on oil being below $10 a barrel—incredible prices.

As several hon. Members have said, 65,000 jobs have been lost in the oil sector since the beginning of 2014. It is a difficult time for the industry, but there are roughly 24 billion barrels of oil left in the North sea, which one day will not sell for tuppence ha’penny. We need an effective regulator, because that can bring stability and encourage investment.

I have no expertise or background in the industry—my background is as a director of a small business that was regulated by the Financial Services Authority and is now regulated by the Financial Conduct Authority. It is fair to say that the FSA was not a brilliant regulator—it

failed fundamentally—but it is incredibly important that there is now a trusted regulator in the sector. I am sure it will be the same in the oil and gas industry. Oil & Gas UK has said:

“We believe the OGA is a critical catalyst for the work being undertaken to sustain offshore oil and gas activity and the associated employment in the sector, and its tools and capabilities should remain focussed solely on this task”.

I have one other point to mention on oil and gas. I am glad the hon. Member for Aberdeen South (Callum McCaig) is back in his place. When I intervened on him earlier and asked what the SNP could do, he suggested that it was naive to think that the Scottish Government should try to do anything about the crisis. It is a UK crisis, but it is hitting Scotland hard, particularly his constituency.

About this proceeding contribution

Reference

604 cc1202-3 

Session

2015-16

Chamber / Committee

House of Commons chamber
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