UK Parliament / Open data

UK Oil and Gas Industry

Proceeding contribution from John Howell (Conservative) in the House of Commons on Tuesday, 25 February 2020. It occurred during Debate on UK Oil and Gas Industry.

It is a pleasure to serve under your chairmanship, Mr Robertson.

Earlier in my career I was involved with the oil and gas sector as a taxation expert, dealing with the taxation of oil and gas companies. I echo the point made by my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) that, in the Budget that is coming up, there should be no changes that rock the oil and gas industry. We do not need to throw bricks at an industry that is already doing so much to help with the net zero carbon targets that we are trying to achieve.

The context is the enormous decline in revenues from the oil and gas sector. Back in 2008-09, revenues were at something like £13 billion; they are now down to just over £1 billion. That is a colossal collapse, and we need to do something to encourage the oil and gas sector and to help it survive.

The sector also needs more capital investment. Capital investment has fallen to one of the lowest levels in history and is now down to about £5 billion a year. That

is coupled with a decline in drilling and an increase in the rate of decommissioning costs to almost £2 billion, which is quite a large increase—I see that the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) is about to intervene on me.

Type
Proceeding contribution
Reference
672 cc8-9WH 
Session
2019-21
Chamber / Committee
Westminster Hall
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