North Sea Oil

Oral Answers to Questions — Energy – in the House of Commons at 12:00 am on 25 July 1983.

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Photo of Malcolm Bruce Malcolm Bruce , Gordon 12:00, 25 July 1983

asked the Secretary of State for Energy whether he is satisfied with the current level of North sea oil development activity.

Photo of Mr Peter Walker Mr Peter Walker , Worcester

I am satisfied with the current level of North sea oil developments; 22 oilfields are in production and two more are expected to come on stream shortly.

Photo of Malcolm Bruce Malcolm Bruce , Gordon

Does the Minister acknowledge that the taxation regime has led to a severe gap in orders for fabrication yards, which is causing real concern, and that there is no evidence that it can be plugged? Does he also acknowledge that although oil development is going ahead, the collapse of the gas-gathering system has meant that many of the associated gas developments are not going ahead and that is why we are having to pay up to 35p a therm to import Norwegian gas?

Photo of Mr Peter Walker Mr Peter Walker , Worcester

I disagree with the hon. Gentleman on the last point. As for the general position, the announcements made in the Budget and the changes that are taking place—in royalties, for example—will be of considerable assistance in the spheres mentioned by the hon. Gentleman.

Photo of Mr Trevor Skeet Mr Trevor Skeet , Bedfordshire North

There have been 147 significant discoveries of oil and gas in the North sea. Does my right hon. Friend agree that recent changes in legislation have made it probable that at least 20 fields will be developed?

Photo of Mr Peter Walker Mr Peter Walker , Worcester

I should not wish to put an estimate on the figures, but I believe that a great deal of activity will now take place to the benefit of the country and of the supplying industries.

Photo of Charles Kennedy Charles Kennedy , Ross and Cromarty and Skye

Does the Secretary of State concur with the view of the previous Minister of State, Department of Energy, Lord Gray, that there is one platform construction yard too many in Scotland?

Photo of Mr Peter Walker Mr Peter Walker , Worcester

I do not know the specific statement to which the hon. Gentleman refers. The new measures which are being taken should mean more for that industry.