Oil and Gas Industry

Lord Moynihan Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

I agree with the points made by the noble Lord. I congratulate the sector on its response to the twin crises of the pandemic and the lower oil price. The Government launched an unprecedented Covid-19 financial package because we want to support the sector, which sustains more than 270,000 jobs in the UK. As I said earlier, we are committed to a proper North Sea transition deal.

[Lord Moynihan (Con)]

My Lords, I declare my interests as set out in the register. As oil and gas supply and service companies move increasingly to offshore or renewable business, will the Minister confirm that the energy White Paper will cover the error whereby the energy transition discussions on renewable costs almost always completely ignore the system costs of coping with periods of intermittently zero or limited electron production?

[Lord Callanan (Con) [V]]

My noble friend makes a good point, as always. The White Paper will indeed address the characteristics of the electricity system as we prepare for a net-zero future, balancing the increased deployment of renewables with more flexibility and low-carbon sources of electricity that are available when the wind does not blow or the sun does not shine. Indeed, our system has already demonstrated that it can operate with a high percentage of renewable generation: 47% of electricity in the first quarter of this year was renewable, and, adding in nuclear, we had more than 60% from low-carbon generation.

Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020

Lord Moynihan Excerpts

Wednesday 15th July 2020 Lords Chamber

[Lord Moynihan (Con) [V]]

My Lords, the orders before the House are a considerable intervention to those engaged in or contemplating the acquisition of UK companies. In the context of the specification of additional Section 58 considerations, they seem measured, particularly in the context of Covid-19, and will command support—although it is regrettable that, following the 2018 White Paper, as noble Lords have said, they could not have been considered in the context of the NSI Bill.

However, having lowered the jurisdictional thresholds of the UK merger control regime from £70 million to £1 million in three specified sectors, we are now considering artificial intelligence to become a further sector. I put it to my noble friend the Minister that, despite the Explanatory Memorandum and the information published by government, this could cover all UK businesses involved in artificial intelligence, including providers of components or related services under the share of supply amendment order.

Many of your Lordships and leading lawyers, not least the first-rate team at Herbert Smith Freehills, would welcome the Government making detailed guidance available—quickly—so that sufficient clarity is available to companies either directly involved in artificial intelligence or where artificial intelligence comes within the scope of their business. The guidance needs clarification urgently to avoid unintended consequences away from national security. I look forward to my noble friend the Minister’s reply.

Electricity Capacity (Amendment etc.) (Coronavirus) Regulations 2020

Lord Moynihan Excerpts

Thursday 2nd July 2020 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I fully appreciate that these regulations are narrow in purpose and I welcome them in addressing market providers who are facing current difficulties such as the termination of contracts for non-performance, timing extended to where the performance of the contract begins and how we can protect the continuity of the capacity market. However, as noble Lords have already pointed out, it is impossible to detach them from the past and present pressures on the capacity market, which secures our electricity supplies.

I hope that the Minister can address one specific question. I accept that these regulations provide the opportunity to meet some of the commitments that were given at the time of the EU annulment in 2018 to comply with state aid approval—there is very little mention of state aid approval in the documentation that accompanies the regulations. Were any commitments made at the time of that judgment which have not been included in these regulations and, if so, can we expect them to come back to this House or, indeed, are the Government looking towards the end of the year for a complete exit from that requirement?

In his introductory speech, my noble friend the Minister touched briefly on the broader context, and indeed in another place the Secretary of State went into greater detail. Indeed, a great deal has changed since I was a Minister for energy, and the White Paper will no doubt provide an opportunity for Members of this House to consider the consequences of technology-neutral auctions, decarbonisation, flexible pricing and the escalating cost and uncertainty of an essential nuclear programme.

However, I hope that the Minister can confirm today that natural gas-fired power generation should be a key part of the UK mix. In a living with Covid future, the re-stimulus of the global economy will have to be based on strong green roots, albeit that energy affordability will be a much stronger part of the post-crisis global policy debate than was the case before the coronavirus began to stalk the globe. Gas is an obvious partner for a global renewable industry which needs to prove to a post-crisis world that firm—which can never be the case for sun and wind—but affordable and reliable power can be delivered to the UK economy, which cannot afford the huge hidden costs of an ever-expanding renewable system: back-up costs, system balancing costs, curtailment costs, new grid costs and nascent battery storage scheme costs. It is gas which must and will continue to improve its environmental performance and should, I hope the Minister will agree, be an essential part of our energy balance.

Competition and Markets Authority

Lord Moynihan Excerpts

Thursday 25th June 2020 Lords Chamber

[Lord Callanan]

I will correct the noble Baroness: we will not leave EU markets at the end of the transition period. We seek in the negotiations to ensure continued access to those markets and for EU companies to have access to UK markets. That is the whole point of the negotiation. We keep all these matters under constant review. We will build on the powers of the CMA if that is required for what consumers need.

[Lord Moynihan (Con) [V]]

My Lords, does my noble friend accept that if the Government are to continue to prioritise consumer protection, they urgently need to address the necessity of strengthening the CMA and legislation to protect consumers, as stated across the Chamber today?

[Lord Callanan]

At the risk of repeating myself, of course we keep these matters under constant review. We will see the outcome of the Digital Markets Taskforce that the CMA is currently involved in and, if necessary, we will take further action.

Covid-19: Businesses and the Private Sector

Lord Moynihan Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I refer to my declaration of interests in the register. Companies in the UK offshore oil and gas industry contribute around 50% of our gas, which is used for a large proportion of our electricity production. They also produce a major proportion of the oil that fuels our cars and which is used in the manufacture of a wide range of items that we use in our care homes and the NHS, from contact lenses and toothbrushes to medical equipment, and the heating that supports the vast majority of our homes.

These companies were referred to by my noble friend Lord Dobbs, and many in the service and supply sector that support them also back the UK drive to net-zero emissions. They are fully committed to and are embracing the 2050 targets, while working on the technology to help us achieve the Government’s objectives to lead the world. Oil and Gas UK chief executive Deirdre Michie recently said that the

“UK’s offshore oil and gas industry is not shying away from the climate conversation but embracing it.”


Many in this sector have faced particular hardship during this epidemic, in this new world of working with Covid-19 restrictions. Oil and Gas UK has confirmed it is to seek an exemption for offshore workers to the proposed 14-day quarantine on flight arrivals to the UK. This is an industry I know well, having implemented the Cullen recommendations as Minister for Energy after the horrific Piper Alpha disaster. The safety of its people remains the primary focus, with extensive measures in place to protect and manage their welfare. I hope that the Minister will respond positively to the request to seek an exemption to the proposed quarantine restrictions to minimise any further impact on businesses and jobs in this essential private sector industry, which is already severely impacted by Covid-19, redundancies, furloughing and the low global oil and gas price environment.

Oil: Changes in Global Markets

Lord Moynihan Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord Callanan]

Of course, the UK already levies two carbon prices on fossil fuels, both through the European Emissions Trading Scheme and with a separate carbon price support mechanism. Over the summer of 2019 we consulted on options for long-term carbon pricing and we intend to publish a reply shortly.

[Lord Moynihan (Con)]

My Lords, I refer to my interests as declared in the register. The oil markets have responded positively to the latest OPEC agreement, but does my noble friend agree that high on the list for the Government’s investment strategy will need to be an urgent and supportive top-down, bottom-up review of the UKCS oil and gas industry, including those involved in decommissioning?

[Lord Callanan]

We understand that this is a troubling time for this vital sector for the economy. We are in regular contact with the industry. It is taking advantage of our unprecedented financial recovery packages and we will continue to monitor the situation.

Waterson Review

Lord Moynihan Excerpts

Wednesday 23rd November 2016 Lords Chamber

[Baroness Neville-Rolfe]

The Act has of course come into force and there have been prosecutions on ticketing, although they are often made through fraud law rather than consumer law. The advice I would give to consumers is to get in touch with the excellent Citizens Advice service. If they have evidence of fraud they should contact Action Fraud, and there is also the possibility of trading standards taking action. One of Professor Waterson’s recommendations is that more work should be done on that.

[Lord Moynihan (Con)]

My Lords, does my noble friend agree that modern-day touts who use bots in the form of software that stores hundreds of credit card accounts and can instantly sweep the market of tickets the moment they go on sale, only to reappear half an hour later through their colleagues on the secondary market at highly inflated prices, corrupts the market and denies the true fans of sport and musical events the opportunity to buy tickets? These touts should be subject to legislative action by the Government through the Digital Economy Bill.

[Baroness Neville-Rolfe]

As always, my noble friend makes some powerful points. He will be glad to know that the Secretary of State for Culture, Media and Sport has asked for a round table to be held with the industry on this matter next week, on 30 November, in order to bring together all the interested parties to look at the issue of bots following very useful discussions on the Digital Economy Bill.