Oil and Gas

Claire Coutinho Excerpts

Tuesday 24th March 2026 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

I beg to move,

That this House calls on the Government to remove the Energy Profits Levy, end the ban on new oil and gas licences and approve the Rosebank and Jackdaw fields to increase secure domestic energy supply; recognises that the North Sea provides half of the UK’s gas supply, supports 200,000 skilled jobs across the UK and generates billions of pounds in tax revenue; further recognises that three quarters of the UK’s energy needs are met by oil and gas, that the UK will continue to use oil and gas for decades, and that the North Sea is the UK’s most secure and lowest-carbon source of oil and gas; notes that without action to make the sector more investable, the UK risks importing 82% of its gas by 2035 at higher cost and with higher emissions; and further notes that independent analysis by Stifel shows that the Energy Profits Levy will cost the Treasury more than it raises and that reforming it would generate an additional £25 billion in tax revenues within 10 years.

What do RenewableUK, Scottish Renewables, Greg Jackson from Octopus, the chair of Great British Energy, the unions and the Tony Blair Institute all have in common? They all think that the Labour party has got this wrong; they all think that we should make the most of our oil and gas in the North sea. They are some of the most powerful advocates for clean energy in this country, they are the great and the good of the Labour left, and they all get that shutting down the North sea is an act of economic self-harm—an unforgivable own goal when it comes to Britain’s energy security. The question is: why does the Labour party not get that? Let us go through the arguments, one by one.

First, the Secretary of State has argued that the North sea does not help our energy security because all the oil and gas gets sold abroad. That is rubbish. We use all the gas that we drill in the North sea. It makes up about half our supply. If we do not use our own North sea gas, by 2035, we will be three times more reliant on foreign imports of liquefied natural gas. That is much dirtier foreign gas. Why would we use that when we could use our own? The argument that it does not affect our energy security is pure misinformation from the Secretary of State, and MPs in the House today would be unwise to repeat it. Even the Climate Change Committee acknowledges that we will still need oil and gas for decades to come. If we are going to need them, we should get as much as possible from Britain. That is just common sense.

Secondly, Labour says that maximising our own resources in the North sea makes us more reliant on fossil fuels. That is total rubbish. Producing our own oil and gas has no connection with our consumption of oil and gas. The biggest barrier to electrification is not our oil and gas industry; it is the Labour party, making electricity more and more expensive by piling levies and taxes on to people’s bills. Using electricity to heat our homes or drive our cars can help make us resilient during a price spike, but the problem is that our electricity is too expensive. The Secretary of State, by piling cost after cost on to people’s electricity bills, is making the problem worse.

[Richard Tice (Boston and Skegness) (Reform)]

Does the right hon. Lady agree that the simple thing to do to bring down bills is to scrap net stupid zero, so that we can scrap all the carbon taxes and all the green levies, and all our consumers and households would be better off?

[Claire Coutinho]

We do need to take some of the green taxes and levies off electricity bills. The problem is that if the Government keep making electricity more expensive, no one will want to use it. That is why our policy is the opposite of theirs. We believe that we should make electricity cheap by taking off green taxes and levies, and that has nothing to do with the North sea. Drilling in the North sea does not stop anyone buying an electric car. It does not stop us building nuclear, of which I am a strong advocate, and nor does it stop us building wind or solar for that matter. The Government say that drilling in the North sea leaves us tied to fossil fuels, but why? They need only look to Norway to see that that is not true. It makes the most of its own oil and gas resources, but lots of people drive electric vehicles there. Let us hear none of that argument today.

Thirdly, the Government say that drilling will not help reduce costs for ordinary people. That is economically illiterate rubbish. We are paying tens of billions of pounds to import oil and gas from Norway from the exact same basin we could be drilling ourselves. Destroying our oil and gas industry means some £25 billion in lost tax revenue for the public finances over the next decade. The Government say they are taxing the wealthy. Are they in the real world? They are taxing anybody with a pulse: pensioners, middle earners, small businesses, farmers, drivers—if they breathe, the Government are taxing them, and people are suffering. The Government could instead be getting that tax revenue from a thriving industry.

[Sarah Coombes (West Bromwich) (Lab)]

Is it not true that the number of jobs in the North sea oil industry halved in the last decade when the shadow Secretary of State’s party was in government?

[Claire Coutinho]

The hon. Lady might like to know that oil and gas jobs have been stable for the past six years, but we are losing 1,000 jobs a month because of the Government’s policies. I know that because I have been to Aberdeen; perhaps she would like to do the same.

We also saw yesterday that the markets are charging us 5% for our borrowing. That is because they think we borrow too much and earn too little. There is an easy way for the country to earn some more money: we can make the most of our own resources and back the North sea, which would drive down costs for everyone. It is unfashionable at the moment to talk about balance of payments, but if we keep sending billions of pounds abroad and rack up the credit card bill, that causes costs for everybody.

Fourthly, on climate, Labour will say that drilling our own oil and gas in the North sea is “climate vandalism”—I am quoting the Secretary of State—but that is patent rubbish. Every drop of gas that we do not drill ourselves, we import from abroad instead. The liquified natural gas that we import has four times the emissions of gas that we could get from the North sea. LNG, for those who do not know, has to be frozen to minus 150ºC, shipped in diesel-chugging tankers, then heated up here. That is why it has much higher emissions overall. The Labour party says that it cares about that and that climate change is the biggest threat to our national security—its words, not mine—but it has a choice today: we can be three times more reliant on that dirtier LNG shipped across the Atlantic or shipped in from the middle east, or we could use our own gas with four times fewer emissions. Do the Government prefer virtue signalling and higher emissions under the Secretary of State, or more jobs and lower emissions under our plans to back the North sea?

[Graham Stuart (Beverley and Holderness) (Con)]

Does my right hon. Friend, like me, feel sorry not only for all the consumers up and down the country who see billions of taxes that could be paid if we just produced more oil and gas here—that could be used to lower their taxes when they fill up their cars and travel to work—but for the two Ministers on the Front Bench, the hon. Members for Inverclyde and Renfrewshire West (Martin McCluskey) and for Rutherglen (Michael Shanks)? Neither of them is an idiot, but they have been captured by an ideological Secretary of State who is literally making them swear that black is white.

[Claire Coutinho]

The two Ministers are Scottish MPs. They have been to industry, and they know what people in those areas are saying. They know the jobs that are being lost. It is so blindingly obvious that we should use things that we make in this country, rather than using dirtier imports from abroad. The question they need to ask themselves is, why is it that their Secretary of State cannot see the truth?

Fifthly, the Government say that new fields will take too long to get up and running. That is dangerous, short-termist rubbish. Jackdaw and Rosebank could be up and running by Christmas. They have been sat on the Secretary of State’s desk gathering dust. The Government are hiding behind the process. I was part of the process, and it is in the Secretary of State’s gift—it is up to him to make the assessment. We are in an energy crisis, and he could speed things up if he chose to do so. Jackdaw alone could produce enough gas to heat more than 1.5 million homes. Labour’s Chancellor commended Norway and Canada for drilling more—[Interruption.] That is what she said last week. She said that

“every country has got to play their part”

by generating more oil and gas. Government Members should ask themselves why their party position seems to be to support the oil and gas industry anywhere but Britain.

[Ms Polly Billington (East Thanet) (Lab)]

Does the right hon. Lady agree with her shadow Energy Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), when he said:

“Look, nobody’s saying that net zero was a mistake. Net zero in the round was the eminently sensible thing to do. We need to decarbonise and we need to have an ambitious target to aim for”?

[Claire Coutinho]

I would thank the hon. Lady, but I do not think it takes much effort to read out a Whip’s question. The question she needs to answer is why she is supporting a policy that will increase British emissions. She is supporting a policy that means we are importing goods with higher emissions.

I have laid out five bad arguments that have been thoroughly disproved by people outside this Chamber whom the Government supposedly respect. Those five bad arguments spun by the Secretary of State should be consigned to history. What the North sea can give us is what it has been doing all along: stronger energy security, a stronger environment and a stronger economy. Are those not things that we want the next generation to have? The question that the Government need to answer is this: what reason do RenewableUK or their very own chair of Great British Energy have to back the North sea if it does not give us those very things? Maybe—just maybe—it is time for the Government to admit that their Secretary of State has approached his role with a dangerous, blinkered ideology, rather than being interested in the national interest. Perhaps even they realise that they are once more being marched up the hill on the wrong side of history and on the wrong side of public opinion, when we all know that there will be an inevitable U-turn from the Prime Minister and the Chancellor in a few weeks’ time.

It is mad at the best of times not to want to make the most of our own resources. The idea that one should ban industry if it does not change prices in this country is, let us be clear, an argument to shut down all business in this country. There are benefits to making things in Britain: jobs, tax revenue and self-reliance. The Labour party used to understand that.

[Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)]

On that point about security and growing energy at home, I am sure that my right hon. Friend shares my concern that in the push for renewables, we are entirely reliant on the processing being done in China on the other side of the world. The Government talk about not being reliant on petrochemical dictators, but they seem perfectly happy to be reliant on renewable dictators.

[Claire Coutinho]

My hon. Friend makes an excellent point. In the trade wars that we saw last year, China limited the export of several rare earth minerals that are critical components in the renewable supply chain. An energy system that is dominated by renewables is one that is completely reliant on China, and that is why we think it is the wrong approach. It is mad at the best of times not to want to make the most of our own resources, but in the middle of a supply crisis, it is completely unforgivable. Yet that is exactly what Labour MPs will vote for today. They are on the wrong side of history on this one. They should put their disastrous Secretary of State’s zealotry to one side, fast-track Rosebank and Jackdaw, reverse their disastrous bans and taxes, and put our energy resilience over their narrow political interests by backing the North sea.

[Jim Shannon (Strangford) (DUP)]

I thank the shadow Minister and the Conservative party for bringing this subject forward. My constituents tell me very clearly, “If we have oil, let’s dig it, let’s drill it and let’s make sure that we get the opportunity from it.” Is it not ludicrous for the Labour party to let Norway get all the assets from the drilling and let us get nothing, when it is coming from the same bed? For the Labour party to have that policy is ludicrous. It goes against the will of the people and against the will of us those of us on the Opposition Benches of this Parliament. I think the Minister should take a review of this decision.

[Claire Coutinho]

I think those are the strongest words I have heard from the hon. Member in my entire time in Parliament, and the Government would be wise to heed them. At the moment, we share the same basin with Norway. Last year, Norway drilled 46 new wells and made 21 new discoveries, while we drilled zero wells for the first time since 1964. This is exactly the same basin. There is not a geological difference; it is a political line drawn down the middle. It is quite clear that it is the approach of Labour and the Secretary of State that is driving the industry into the ground.

[Stephen Flynn (Aberdeen South) (SNP)]

One reason that Norway is so successful is the certainty that is applied to its tax regime in respect of oil and gas drilling. The Conservatives’ motion, as I read it, seeks to remove the energy profits levy. As a point of clarity, can the right hon. Lady be clear with the House as to whether she would want that to be replaced by the oil and gas price mechanism, as suggested by so many in the industry in Aberdeen?

[Claire Coutinho]

I know that the right hon. Gentleman’s party has a chequered past in backing the North sea, but I would be happy to work with anyone to look at how we can support the industry.

My position is clear. At the moment, we are taxing companies at a marginal rate of 100%, we are banning new licences—the only country in the world to do so—and we are making ourselves more reliant on dirtier gas from abroad, when we could be using our own resources and taking in £25 billion of tax receipts. That is why I urge the Labour party—the party that used to be the party of workers, the party of industry and the party that understood aspiration in this country—to put itself on the right side of history and vote for the motion today.

--- Later in debate ---

[Pippa Heylings (South Cambridgeshire) (LD)]

We need to be clear that this energy crisis is, in effect, an oil and gas crisis and shows us yet again just how dangerous our overdependence on fossil fuels is. Just as with Russia’s invasion of Ukraine, the middle east conflict shows how a single geopolitical escalation can send energy prices soaring, leaving households and businesses here in the UK exposed to shocks beyond their control. History is now in danger of repeating itself: families struggling with higher gas, petrol and food prices while energy companies’ profits surge. Forecasts from Cornwall Insight suggest that, if the conflict continues, energy bills could rise by £332 this July—a £332 Trump war tax on our energy bills.

Yet what do we see in the Conservative response? More drilling, more dependence, more of the rollercoaster of volatile fossil fuel prices. Alongside Reform UK, the Conservatives who are here today to mislead the public on the need to “Drill, baby, drill” are the same ones who were gung-ho in urging the Prime Minister to join Trump in the illegal war that caused this very crisis.

[Claire Coutinho]

Can the hon. Lady explain why the production of oil and gas makes us more reliant on the consumption of oil and gas? Will she consider the example of Norway, which, despite exporting oil and gas, and getting tax revenue from it, has high electric vehicle penetration? Why does she conflate these issues?

[Pippa Heylings]

I believe that the Minister answered that question. Norway has a very different system, and it made different decisions about consumption, based on the faster and greater adoption of techniques and heat pumps. The dither and delay under the previous Conservative Government meant that we did not move forward and reduce consumption.

The truth is that expanding oil and gas production in the North sea—a mature basin from which we have already extracted 93% of resource—would do nothing to cut people’s energy bills, because any oil and gas extracted is sold on international markets to the highest bidder. Nor would it influence global prices, given that the UK can contribute only a tiny fraction of the global supply, even if new licences were granted. It would neither cut bills nor increase the security of supply.

Research by Uplift shows that fields licensed by the previous Conservative Government over 14 years have produced just over a month’s worth of gas to date. Energy security is national security; as long as we rely on fossil fuels, we rely on foreign dictators and petrostates. Trump’s national security report was clear: he will use his gas to project power, turning it on and off at will. The Conservatives and Reform have shown that when Trump says “jump”, they ask, “How high?” That is not energy security; it is energy surrender.

--- Later in debate ---

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

I will start by thanking the North sea oil workers now and in the past. I recently read the book “Black Eden” by Richard T. Kelly—perhaps others have read it, too. On just about every single page, I was reminded of people I know, or people I knew in my childhood in Aberdeenshire—the incredible innovators, the divers who risked their lives every single time they entered the water, and the workers on the rigs spending weeks away from their families. They deserve our thanks and recognition. What they do not deserve is histrionics, slogans rather than a plan and to not be taken seriously. They have not been taken seriously by the Opposition motion today.

The Opposition motion misrepresents the industry that North sea oil workers are in. It fails to set out a path towards sustainable employment for them and for their kids and grandkids—and, by the way, they do care about their children’s employment in Aberdeen. It also ignores the need to get energy bills down, let alone to tackle the climate emergency. The claims made in the motion that these measures would somehow boost employment and reduce bills are farcical.

[Claire Coutinho]

Since I went to Aberdeen recently to talk to workers and to grandparents and their children, I would like to ask the right hon. Lady, when was the last time she spoke to workers in Aberdeen?

[Anneliese Dodds]

Well, I can answer that very quickly, because many of them are in my family and among my friends. The shadow Secretary of State said before that she had visited Aberdeen. I found it extraordinary that when the Liberal Democrat spokesperson, the hon. Member for South Cambridgeshire (Pippa Heylings), mentioned the fact that jobs in oil and gas extraction fell by a third between 2014 and 2023, she would not even acknowledge it—she looked stunned. Well, I can tell her that for workers in that area, those job losses were painful. Every bust has been painful, and she should acknowledge that, rather than pretending it did not even happen. People who are working in that industry deserve a proper strategy for their future, not magical thinking and empty sloganeering.

--- Later in debate ---

[Carla Denyer (Bristol Central) (Green)]

There is simply no case for opening new oil and gas wells in the North sea, for approving Rosebank and Jackdaw, or for removing the windfall tax from oil and gas companies. It is inaccurate, irresponsible and immoral for the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), to suggest otherwise in her motion. Expanding North sea drilling will do nothing to support UK energy security or jobs, as the Lib Dem spokesperson—the hon. Member for South Cambridgeshire (Pippa Heylings)—and the right hon. Member for Oxford East (Anneliese Dodds) laid out very clearly in their speeches.

[Claire Coutinho]

Will the hon. Lady give way?

[Carla Denyer]

Those Members answered the challenges from the shadow Secretary of State, so I will move on, given the limit on time.

Given that the measures proposed in the motion will not secure our energy supply, protect jobs or bring down bills, what will drilling more oil and gas from the North sea do? It will undo so much progress we have made in cutting greenhouse gas emissions. We are proud to have ended polluting coal power in the UK—indeed, I thought the shadow Secretary of State was proud of that—but allowing Rosebank would be the equivalent of running 56 coal-fired power stations for a year, undoing all that good work. Drilling more oil and gas from the North sea will also make some people a lot of money, including those on the Reform and Conservative Benches who take dirty money from fossil fuel donors.

[Claire Coutinho]

Will the hon. Lady give way?

[Carla Denyer]

No, I will not, thank you—I will carry on. [Interruption.] Fine, I will give way.

[Claire Coutinho]

I thank the hon. Lady for giving way. Could she explain why the biggest advocates for climate transition in this country—RenewableUK, Greg Jackson from Octopus and the chair of Great British Energy—say that she is wrong?

[Carla Denyer]

I beg the right hon. Lady’s pardon, but they say I am wrong about what?

[Claire Coutinho]

They say that the hon. Lady’s position on the North sea is wrong, and that we should keep drilling there.

[Carla Denyer]

My reliance is on the evidence, which shows that 93% of recoverable oil and gas in the British parts of the North sea has already been extracted. Whatever does remain will be sold on the international market to the highest bidder, as many Members have already pointed out. If the proposals in the shadow Secretary of State’s motion were implemented, they would do nothing for energy security and nothing for jobs.