Oil and Gas

Debate between Gareth Snell and Laurence Turner

Tuesday 24th March 2026 Commons Chamber

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

I will start with the things that we all agree on. I think that across the House, we all acknowledge that the international energy prices we face in this country are too high. As the Minister is on record as saying, there is a rollercoaster effect when it comes to the price of gas. Today, it is 149p per therm; it was 120p per therm in February 2025, and it was 38p per therm in February 2021. We have to acknowledge the fact that oil and gas prices are going up around the world, particularly gas prices, and the impact can be felt not just in the jobs that the hon. Member for Gordon and Buchan (Harriet Cross) rightly spoke about, but in jobs in those industries that are gas-dependent.

The thing that I find difficult to stomach is when we talk about energy in the round, as if there is only one type of energy and everything will eventually run off it. Energy is a diverse group of ways of powering things. It can be electrical or nuclear, but in most of our foundational industries, it is gas. We acknowledge that gas will be here for a very long time—we will have to use it to power the kilns that make the bricks to build the houses we want to build. We will need gas to power the furnaces in the foundries that make the metal and steel for our defence development and manufacturing. If we want to make paper, glass, cement or lime in this country, we need gas. So many parts of the economic powerhouse that is the United Kingdom are dependent on gas, and while I agree with my Labour colleagues that we should move at pace to transition to electricity where that is possible, there are sectors in this country where that transition simply is not possible.

[Laurence Turner (Birmingham Northfield) (Lab)]

My hon. Friend is making an outstanding case. Does he also agree that gas is an important feed stock in a number of critical industries, such as the production of ammonia, which is essential in the agricultural sector?

[Gareth Snell]

Absolutely. If we want to make fertiliser or other industrial gases in this country, we need natural gas to power those processes. There is no other way—the chemistry simply does not exist to create the gases we need without using natural gas. As such, although I absolutely support transitioning towards net zero and towards electricity, we have to recognise that great swathes of our industries simply cannot do so, and if they can, they do not have the capital to make the research and development investments that are necessary. We cannot yet fire a kiln with hydrogen in this country. We cannot get a stable supply of electricity to kilns in this country, not least because in the places where those factories are, such as Stoke-on-Trent, the grid capacity to do the hook-up simply does not exist and will not exist for generations to come.

When we talk about the transition towards net zero and more electrical generation, what are we going to say to the places that cannot do it? When we say, “It’s all going to be done through renewable energy”, what message do we send to workers in Stoke-on-Trent and in Denby in Derbyshire whose sector simply cannot transition away from gas? I want there to be more renewable energy. I want that technology to exist, but it is not there yet, and every time we forget that, we are talking about writing off jobs and livelihoods in the places that need them most.