Oil and Gas

Mike Reader Excerpts

Tuesday 24th March 2026 Commons Chamber

[Mike Reader (Northampton South) (Lab)]

I have found this debate quite fascinating. What nonsense from the Conservatives! We are watching a party rip itself up as it worries about more defections to Reform, and Conservative Back Benchers parrot the lines of their Front Benchers. We know from media coverage that the Conservatives are promoting people to the Front Bench based on their social media clout, so I look forward to many more one-liners and AI-generated speeches as they all try to get to the front. We have heard arguments that sound less like a plan for Britain and much more like they are straight from the Reform playbook, talking down our country and creating more uncertainty and worry for families across the UK.

To be clear, I fiercely oppose further oil and gas exploration in the North sea. Expanding new drilling would not address the pressures that families face right now, and it would not give our country long-term energy security and sovereignty. In fact, it would exacerbate the problem. There is a claim that we can simply turn the drilling on, that billions of pounds are available right now without any Government subsidy, and that, all of a sudden, we will get more oil. That is a fairytale—it is nonsense. Drilling and expansion is expensive. The best supplies are already tapped out. Profiteering drillers and exploiters are honest about this. There are other places around the world where they would much prefer to drill, to make much bigger profits for their stakeholders. Drilling is not a magical solution that will benefit British families.

Even if North sea fields were opened today, as the motion proposes, the UK would still depend on imported gas by 2050, but it would make up 94% rather than 97% of the total. It would make almost zero impact on our long-term energy security. Let us consider the two projects mentioned in the motion. Jackdaw would reduce import dependence by roughly 2%, with the UK continuing to be heavily reliant on international supplies. Rosebank would reduce oil dependence by around 1%, and all that oil would be destined for exports, not for the pumps.

[Richard Tice]

Is the hon. Member aware that there is about a decade’s worth of wonderful shale gas in the great county of Lincolnshire that can power this great nation?

[Mike Reader]

The discussion on fracking is perhaps one for another day.

We have heard claims that there are billions of pounds to be invested, but in reality, when it comes to development, it is the public who pay the price. In some cases, taxpayers foot around 80% of the development bill. Modelling on Rosebank and ending the energy profits levy shows that there could be a net loss of about £250 million to the Treasury, while operators would receive about £1.5 billion in profits. That should give us pause for thought. Who are we here to represent—our neighbours who are facing high prices at the pumps and high fuel bills, or multimillionaire shareholders?

There is also the fundamental question of whether the Government will keep their promise to future generations on the climate crisis. International bodies, including the International Energy Agency, have set out that new exploration licences are not compatible with limiting warming to 1.5°C. Last year was the first time in history that global temperatures exceeded 1.5°C above pre-industrial levels.

We have a legal obligation, but, more importantly, we have a duty to act in the best interests of our country and our people in the long term. If we expand fossil fuel extraction in full knowledge of the consequences, we are choosing to delay that responsibility and we will feel the effects. We are already feeling the effects in food prices. The No. 1 issue that our farmers are facing is climate change. We will feel the impact of extreme heat and air quality on health, and we will see the effects in global instability, which feeds straight back into costs here at home.

The task ahead of us is to make sure that we stick with the plan, focus on doubling down on renewables, say no to oil and gas, and, ultimately, make sure that we deliver a clean future for our country.

--- Later in debate ---

[Bradley Thomas]

We are increasingly dependent on China because of decisions taken by this Government. The pursuit of renewables-based future energy infrastructure is increasingly dependent on countries that are adversarial to us and pose a risk to our long-term energy security. The hon. Member is right on that point.

This is not just about energy; it is also about jobs and public finances—something the Government know only too well, following their economic choices. The North sea has long been a vital source of revenue for the Treasury, creating billions of pounds that support public services and infrastructure. Analysis by Offshore Energies UK shows that there is £165 billion of estimated economic value in the North sea, should the Government muster the political will to seize it.

[Mike Reader]

Will the hon. Member give way?

[Bradley Thomas]

I will not give way any further.

To accelerate the decline of that sector without a fully viable replacement is not just economically risky but fiscally short-sighted. At the same time, we must consider the livelihoods tied to the industry, as colleagues across the House have stressed. Tens of thousands of skilled workers depend directly or indirectly on oil and gas. These are not abstract numbers; they are engineers, technicians, supply chain workers, families and, more importantly, whole communities. If we move too quickly without a realistic transition plan, we do not simply phase out an industry; we create unemployment, lose expertise and weaken entire regions.

That is happening right now. This is not just a theoretical concern; it is raised by those who are closest to the issue. Trade union leaders have been clear. The general secretary of the GMB has described the Government’s stance on oil and gas as “madness”. Unite the union has warned plainly that such policies will put jobs at risk. Even Juergen Maier said that extracting more gas and oil from the North sea would boost jobs and tax revenues. Those are not voices that the Government usually say are opposed to progress; they are voices that represent working people, so why on earth are the Government choosing to ignore them?

We have to consider the global context. The UK accounts for a relatively small share of global emissions. Even if we were to reach net zero tomorrow, the impact on global temperatures would be limited. Meanwhile, major economies that compete with us continue to rely heavily on fossil fuels as they balance growth, development and transition. That is why we have to get the balance right. True leadership from the Government lies not in symbolic gestures but in practical solutions that can be adopted globally. The pursuit of net zero, as currently framed, risks becoming an exercise in self-imposed constraint—one that weakens our economy, compromises our energy security, threatens jobs, reduces vital tax revenues and lowers living standards for all, while delivering limited benefit.