Treaty of Lisbon (No. 2)

I shall be brief, as I know that other Opposition Members wish to contribute, and in the interests of having a balanced debate, I shall try to give them sufficient time to do so. I support the insertion of the energy element in the new treaty, as I have long argued that energy was insufficiently covered in existing arrangements, and having a more common EU energy policy is becoming an issue of increasing UK national importance. Many contributions to the debate reflect the self-confidence that has come from decades of energy self-sufficiency in this country, but the reality is that we are now rapidly getting into a state of energy insecurity. It is interesting that a consultancy firm, Inenco, says that the number of nuclear and coal plants coming out of service over the next few years make shortages likely. It believes that demand will overtake supply some time between 2012 and 2015, creating a serious generation gap. As I hope there will be a Conservative Government at that time, we should deal with this matter quickly. Although I support the desire to have new nuclear power stations, they will not by themselves fill the gap because they will not be ready in time. It is right that the Government are encouraging them by providing regulatory and support frameworks for investment in nuclear power stations, and I am delighted that my hon. Friend the Member for Rutland and Melton (Alan Duncan) has supported the Government in that. However, we face a problem, which is shared by most other EU countries, although the extent of the problem differs: there is within the EU an increasing dependence on imported energy. Rather than have a ““beggar my neighbour”” attitude—that is, by and large, the attitude of Members who wish there to be no more pooling of sovereignty or community engagement—we should have a constructive approach. That is increasingly important in the context of the world energy situation and how some of our energy is increasingly supplied. The African position is worrying for the EU as a whole. It is true that Algeria is one of the largest suppliers of its own energy to Europe, but let us consider the situation across the African continent. There is now very strong Chinese investment in, for example, energy in Angola, and the recent Gazprom negotiations in Nigeria cause serious concern about the future of the Nigerian energy supply. Uncertainties are arising, and they need to be discussed at European level. The increasing dependence on Russia, which has been mentioned by several hon. Members, should give a pause for concern. About 25 per cent. of our energy comes from Russia, but that figure will rise to 40 per cent. by 2030, according to the Commission's figures. It is difficult to know exactly what will happen. Interestingly, Russia is the second biggest producer and exporter of oil—after Saudi Arabia. It accounts for about 12 per cent. of global production, although it has only 6 per cent. of global oil reserves, so there are a few questions marks over its continuing prosperity. There is no doubt but that Russia's ability to generate huge capital reserves because its energy is being sold at elevated prices means it will dictate much of what will happen over the next few years. Given all those circumstances, we need to deal with energy coherently at the European Union level.