Oil and Gas

Stephen Flynn Excerpts

Tuesday 24th March 2026 Commons Chamber

[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 ---

[Martin McCluskey]

My hon. Friend makes an important point that gets to the heart of this debate. We are not going to learn the wrong lessons from the current situation in the middle east. We will not make ourselves more reliant on fossil fuels, at a time when we can see playing out day after day in all our constituencies the effect—rising prices—of being overly reliant and exposed to gas and fossil fuels.

We are incredibly fortunate to have the North sea on our doorstep. For almost half a century, the oil and gas buried there has fuelled development and charged our economy. But for too long, Governments have ignored the transition happening before their eyes. We owe it to the North sea’s workers and communities, which have done so much for our country, to set out a proper plan for their future and to seize the immense potential in clean energy.

[Stephen Flynn]

The workers who the Minister is referring to have a very different take from his own on his Government’s approach to the North sea. Indeed, I think they would be incredulous at the arguments he is making today and that his Government have made over many months, because it is costing them their jobs. He knows that moving from the energy profits levy to the oil and gas price mechanism as quickly as possible will give those workers some hope and will help assist with energy security. Is he or his Department currently in discussions with the Treasury about making that happen?

[Martin McCluskey]

The Chancellor has had discussions with industry and will continue to do so, and that is the right and appropriate way to conduct these decisions. I was pleased to be in Aberdeen a couple of weeks ago talking to the same workers that the right hon. Member mentions. Of course, we need to do as much as possible to ensure that oil and gas workers are properly protected through this transition, but we must not lose sight of the great potential, for example, in floating offshore wind, which will also provide a significant future for his constituents and people across Scotland.

As I was saying, the transition that is under way is the only way to get off the rollercoaster of fossil fuels and build a more secure energy system. Following a consultation with businesses and communities last autumn, we set out the steps we are taking to unleash the North sea’s clean energy future. That plan recognises our world-class energy workers and supply chains and the importance of supporting them through that transition.