Found: 12th Report - Offshore Petroleum Licensing Bill Report

Found: The Government has also introduced the Offshore Petroleum Licensing Bill, providing industry with long-term

Found: I was speaking in the Offshore Petroleum Licensing Bill Committee.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps her Department is taking to ensure a just transition when moving from fossil fuels to a hydrogen-based economy.

Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

As well as supporting UK energy independence, low carbon hydrogen will be critical to helping British industries transition from oil and gas, provide greener energy for power, transport and potentially home heating. Government’s working closely with the oil and gas industry to achieve a managed transition, including through the North Sea Transition Deal. Deal recognises the world-leading skills of the sector and supply chain and key role it could have in helping deliver net zero and Hydrogen production ambition. The Offshore Petroleum Licensing Bill sends a strong signal to support the continued investment necessary to our energy security and transition to cleaner technologies.

Question to the Department for Energy Security & Net Zero:

What steps she is taking to promote energy self-sufficiency in the UK.

Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)

We are investing in homegrown renewable energy and recently announced the biggest expansion of nuclear power for 70 years. We are also ensuring sustained oil & gas production through annual licencing rounds under the Offshore Petroleum Licensing Bill.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of the Offshore Petroleum Licensing Bill on (a) Marine Protected Areas and (b) the Environment Act target for 70% of the designated features in the Marine Protected Area network to be in favourable condition by 2042.

Answered by Graham Stuart

The Offshore Petroleum Licensing Bill will not affect the UK's ability to reach targets for ensuring our Marine Protected Areas are in a good or recovering state.

Nor will it change the robust framework we have in place for licensing oil and gas that ensures this.

Licenses have only ever been awarded once the environmental regulator was satisfied that the activities will not negatively impact protected areas, and their impact is carefully managed by our expert regulators.

There is therefore no reason for the Bill to affect our Environment Act target for maintaining marine protected areas.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 20 February 2024 to Question 13704 on Offshore Industry: Employment, for what reason her Department does not use the verified ONS figures for jobs in the UK oil and gas sector.

Answered by Graham Stuart

When assessing the full economic contribution of the offshore oil and gas sector, it is necessary to use a wide range of data sources, given its diverse supply chain and regional significance. The Department uses the Offshore Energies UK’s (OEUK’s) Workforce Insight reports which contain data and insights on direct, indirect and induced jobs supported by the sector.

We introduced the Offshore Petroleum Licensing Bill, recognising that the broad skills and capabilities across the workforce will be vital for the transition required for net zero.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to increase the support provided to unemployed North Sea oil and gas workers to find new employment.

Answered by Jo Churchill - Minister of State (Department for Work and Pensions)

The oil and gas sector supports over 200,000 jobs and is critical to a successful energy transition. That is why the Government is providing certainty to industry through the introduction of the Offshore Petroleum Licensing Bill as well as agreeing the North Sea Transition Deal with industry. This includes the development of an industry-led skills passport to enable workers to move between sectors, protecting jobs and ensuring their skills, which are vital for the transition, are not lost.

DWP supports people across the country through a range of support including face-to-face time with Work Coaches, job-search advice and more intensive employment programmes, helping those at risk of, or who have been made redundant to move back into work.

Through partnerships with local organisations DWP is able to respond to potential and proposed redundancy situations quickly and effectively, with local partners mobilised immediately to offer support and guidance to those affected. Low Value Provision (LVP) is an example of funding that can be used to supply training for Jobcentre Plus Customers, including those at risk of, or who have been made redundant.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to encourage private investment in the (a) offshore oil and gas and (b) renewables sectors, in the context of private investment in the recruitment and development of personnel in those sectors.

Answered by Graham Stuart

Government is developing a Green Jobs Plan, which will provide the actions needed to ensure we have the skills within the UK workforce to deliver on the Government’s targets. Drawing on work by the Government convened Green Jobs Delivery Group, this will be published in the first half of 2024.

To support ongoing investment and protect the 200,000 jobs supported by the offshore oil and gas sector, Government has introduced the Offshore Petroleum Licensing Bill. Work is ongoing to enable workers to move between sectors, to protect jobs and to ensure skills, which are vital for the transition, are not lost.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what recent assessment she has made of the potential impact of the Offshore Petroleum Licensing Bill on the global biodiversity framework.

Answered by Graham Stuart

The UK is committed to implementing the Kunming Montreal Global Biodiversity Framework which aims to halt and reverse global biodiversity loss and contains a target to protect at least 30% of the world’s land and ocean by 2030.

The UK has a comprehensive legal framework of environmental protection measures for offshore oil and gas activities. Section 12 of the Impact Assessment published alongside the Offshore Petroleum Licensing Bill sets out how the environmental principles of the Environment Act have been considered in the development of this Bill.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what evidence base they have used for their claim that the oil and gas industry supports 200,000 jobs, which subsectors are represented by that figure, and how many of those are (1) wholly, and (2) majority, reliant on the oil and gas industry.

Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The impact assessment for the Offshore Petroleum Licensing Bill uses figures from Offshore Energies UK (OEUK) 2022 annual workforce insights report to show how many jobs are supported by the Oil and Gas sector in the UK. This report highlights that there were approximately 200,000 jobs supported by the industry in 2021 and the report includes a breakdown of jobs by sector, and whether they are direct, indirect or induced.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, with reference to her oral contribution during the Second Reading of the Offshore Petroleum Licensing Bill on 22 January 2024, Official Report, columns 42-43, on what evidential basis she stated that 200,000 jobs are supported by the oil and gas sector in the UK; and if she will publish a breakdown of (a) the calculations supporting this figure and (b) those jobs by sector.

Answered by Graham Stuart

The impact assessment for the Offshore Petroleum Licensing Bill uses figures from Offshore Energies UK (OEUK) 2022 annual workforce insights report to show how many jobs are supported by the Oil and Gas sector in the UK. This report highlights that there were approximately 200,000 jobs supported by the industry in 2021 and the report includes a breakdown of jobs by sector.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, if she will make an assessment of the potential impact of the Offshore Petroleum Licensing Bill on the restoration of marine habitats.

Answered by Graham Stuart

The Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) is responsible for regulating the environmental activity for oil and gas operations. Licenses are awarded by the North Sea Transition Authority only after OPRED is satisfied that the oil and gas activities will not have an adverse effect on the integrity of a relevant Special Area of Conservation or Special Protection Area; or significantly hinder the achievement of the conservation objectives of relevant areas. The Offshore Petroleum Licensing Bill will not affect this comprehensive legal framework of environmental protection measures.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with her international counterparts on the Offshore Petroleum Licensing Bill.

Answered by Graham Stuart

My Rt Hon Friend, the Secretary of State, and I regularly meet with a wide range of stakeholders to discuss issues relating to energy security and net zero. This includes numerous recent discussions on the Offshore Petroleum Licensing Bill, including with international counterparts.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps her Department plans to take to help support workers affected by the transition away from oil and gas towards renewable energy sources.

Answered by Graham Stuart

The oil and gas sector supports over 200,000 jobs and is critical to a successful energy transition. That is why the Government is providing certainty to industry through the introduction of the Offshore Petroleum Licensing Bill as well as agreeing the North Sea Transition Deal with industry. This includes the development of an industry-led skills passport to enable workers to move between sectors, protecting jobs and ensuring their skills, which are vital for the transition, are not lost.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of the Offshore Petroleum Licensing Bill on the UK's ability to deliver on its commitments in the Climate Change Act 2022.

Answered by Graham Stuart

The Climate Change Act (Northern Ireland) 2022 was passed by the Northern Ireland Assembly and applies only in Northern Ireland.

As set out in the Offshore Petroleum Licensing Bill's impact assessment, in the long term, it is not expected that total production emissions from the sector will be impacted by the introduction of a duty on the North Sea Transition Authority to invite applications for seaward production licences. The approach set out in the Bill is therefore consistent with the commitments set out in the Climate Change Act 2008, which applies throughout the United Kingdom.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what recent discussions she has had with (a) environmental organisations and (b) charities on the Offshore Petroleum Licensing Bill.

Answered by Graham Stuart

My Rt. Hon. Friend, the Secretary of State, and I regularly meet with a wide range of stakeholders to discuss issues relating to energy security and net zero. This includes numerous recent discussions on the Offshore Petroleum Licensing Bill, including with environmental organisations and charities.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of impact of the provisions in the Offshore Petroleum Licensing Bill on the environment.

Answered by Graham Stuart

The UK is the first major economy to halve its emissions and has more ambitious 2030 targets than any other major economy. Section 12 of the Impact Assessment published alongside the Offshore Petroleum Licensing Bill sets out how the environmental principles of the Environment Act have been taken into consideration in the development of this Bill.

Backing domestic oil and gas industry through the Bill will reduce imports with higher emissions and support delivery of the UK’s net zero targets as the UK needs to retain the skills, expertise, investment and supply chains of the oil and gas sector to support the transition to low carbon and renewable technologies.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to encourage (a) investment in and (b) development of the connection between offshore oil and gas and carbon capture, usage and storage technologies.

Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The skills and investment of the oil and gas sector will drive our energy transition.

A government-funded report looking at the CCUS supply chain found that oil and gas supply chain companies are in prime position to win work in carbon capture and storage.

Government is also making it easier for workers to move between different energy sectors, ensuring that their skills can be tapped into to support the transition.

The Offshore Petroleum Licensing Bill introduced last year will support ongoing investment, protect the 200,000 jobs supported by oil and gas, and support the wider energy transition including CCUS development.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what proportion of gas used in the UK is domestically produced; if he will provide a breakdown of non-domestically produced gas used in the UK; and what steps she is taking to help reduce reliance on imported gas products.

Answered by Graham Stuart

Indigenous production of gas has been equivalent to around half of UK demand for over a decade (DUKES Chapter 4). Gas imports by origin are published in Energy Trends table 4.4.

The UK has a secure and diverse energy system and does not rely on any one source of supply. The Offshore Petroleum Licensing Bill is designed to give industry certainty as to the future of licensing rounds, which will enhance the UK’s energy security and reduce its reliance on imported gas.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to encourage (a) investment in and (b) development of the connection between onshore oil and gas and carbon capture, usage and storage (CCUS) technologies.

Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The skills and investment of the oil and gas sector will drive our energy transition.

A government-funded report looking at the CCUS supply chain found that oil and gas supply chain companies are in prime position to win work in carbon capture and storage.

Government is also making it easier for workers to move between different energy sectors, ensuring that their skills can be tapped into to support the transition.

The Offshore Petroleum Licensing Bill introduced last year will support ongoing investment, protect the 200,000 jobs supported by oil and gas, and support the wider energy transition including CCUS development.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential implications of the provisions of the Offshore Petroleum Licensing Bill for membership of the Energy Charter Treaty.

Answered by Graham Stuart

On 1 September 2023, the UK announced it would be reviewing its membership of the ECT if the modernised Treaty was not adopted by November 2023. The Government is considering the views of stakeholders in business, civil society, and Parliament as part of this process.

Investments in the UK energy sector are potentially in scope of the investment protection provisions of the Energy Charter Treaty. This protection is dependent on the details of the investment and the relationship between the investor and a Contracting Party to the Energy Charter Treaty.

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the compatibility of the Offshore Petroleum Licensing Bill with the UK's 2050 net zero target.

Answered by Graham Stuart

The Offshore Petroleum Licensing Bill is consistent with meeting net zero by 2050. Climate Change Committee data shows that the UK will need oil and gas even when it reaches net zero. North Sea Transition Authority analysis shows that domestically produced natural gas is almost four times cleaner than importing liquified natural gas. Even with continued development, oil and gas production is expected to decline by 7% a year and to fall by nearly 90% by 2050. This is faster than the average annual global decline needed to align with UN 1.5°C pathways and the UK's carbon budgets.

Found: Offshore Petroleum Licensing Bill: HL Bill 49 of 2023–24

Found: Offshore Petroleum Licensing Bill 2023-24: Second Reading