Orders of the Day — Advance Petroleum Revenue Tax Bill

Part of the debate – in the House of Commons at 4:18 pm on 1st December 1986.

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Photo of Dr Michael Clark Dr Michael Clark , Rochford 4:18 pm, 1st December 1986

I agree with the hon. Gentleman that there is probably a break-even level of about $5 a barrel and, therefore, the major oil companies will continue to produce even if oil prices fall to that level. However, does the hon. Gentleman agree that, at that level, or just above it, the major oil companies will not be exploring for the next decade's oil or for the heat, power and motive force that will provide for the next generation? I am sure that the hon. Gentleman would agree, and I would like his comments on that.