North Sea Oil and Gas

Debate between Luke Myer and Michael Shanks

Wednesday 24th June 2026 Westminster Hall

[Michael Shanks]

I have made my position very clear on that project. We were carrying out national security assessments, which should always rightly take priority. The First Minister of Scotland has been briefed on the security grounds for doing that. He is aware of why we reached the decision that we reached. I am obviously not going to comment further on that. Our national security always comes first.

Something that I have always said in this role is that our domestic production in the UK does matter. It sustains jobs and it delivers tax receipts and the gas that flows into our pipes every single day. We are not a Government that are for turning off the taps, and we never have been. But we are for recognising that a transition is under way and that investing in what comes next is critical. I am afraid that that is at the heart of the problem with the argument put forward by the Opposition, because they say that we need to build up the jobs that come next, but then oppose all the decisions that drive forward that investment. They criticise that there are not enough jobs coming from renewables but then say that we should not invest in the renewables projects that create those jobs. That is not a coherent argument to have.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

The Minister knows that I am a fierce champion for the new clean power jobs that we are getting on Teesside. We are seeing some of those opportunities scaling up now, but we cannot see mass unemployment in the offshore industry while those opportunities are still nascent. What assurance can the Minister give that every worker will have the opportunity for a genuinely just transition?

[Michael Shanks]

My hon. Friend is right on that point, and I will come to it in a moment because it is the main thrust of my speech.

I will start with what my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) said and also welcome Donald MacKinnon into his place. I know he will be a strong advocate for the western isles. My hon. Friend rightly recognised that this is about a sense of identity. Yes, it is about a job and a pay packet at the end of the month, but it is also about a sense of belonging to an industry that many people have worked on in incredibly difficult circumstances for a long time.

Since I came into this job as Energy Minister two years ago, and as a Scottish MP and someone who has friends and family working offshore right now, I have always said that getting the transition right for those workers is central. We have seen too many failed economic transitions in the past, so we have to learn the lessons from that. As hon. Members have made very clear today, we must also see the huge potential that comes from the projects that we need in the future, not least in the supply chain that will build many of the projects that we need as part of our transition to clean energy. That will come from those very workers, so it is hugely important that we put them at the centre of all of this.

We also have to recognise that this did not somehow just start happening in July 2024. We have been in a period of transition for decades now. A third of jobs in the industry have been lost in the past 10 years, and we cannot accept that failed status quo any more. Burying our heads in the sand and ignoring the realities of the need for us to fund this transition properly will not protect a single job, nor will it create a new one. Nor will abandoning the sector entirely and turning off the taps as others would seek to do. I notice that this is yet another energy debate where no Green MPs—who have the most extreme positions on this issue—have bothered to turn up.

It must never become a binary conversation. The North Sea Future Board, which I chair, has just produced a statement on what we are seeking to do to drive forward this transition. That says that, at the heart of it, that transition is not about one industry being pitted against another. It is about stewarding the future of the North sea through collaboration and through managing all the opportunities that come, as well as an obligation to work together. There is always rightly a lot of heat in these debates, but I honestly believe that underneath it all there is a lot more consensus about the need, not for one or the other, but for all the energy that we can get and for all the jobs that come from it.

I will briefly say what our position is on the North sea. Gas has been flowing into this country for more than 60 years and is continuing to flow into this country 24/7. I was pleased to be at Bacton gas terminal a few weeks ago to see the skilled work that they do to manage up to a third of this country’s gas. It will continue to be a vital resource for decades to come, but it is also a basin that has been in decline. The most accessible oil and gas has been extracted. Production has been in decline for a quarter of a century, and it reduced by approximately 75% between 1999 and 2024. That did not begin in July 2024.