My Lords, although I sometimes agree very much with the words of the noble Baroness, Lady Worthington, with her enormous expertise in these fields, on this occasion I have some doubts about the amendment and what it tries to do. We all agree that the scene in the North Sea is changing very rapidly and that there is colossal uncertainty. I do not find any difficulty with the suggestion that the new authority should oversee decommissioning of oil and gas infrastructure. Frankly, there will be a lot more of that. We are already hearing of whole fields being made redundant and major problems of finance with existing operations. That the authority should have oversight of decommissioning oil and gas infrastructure seems to me merely common sense. That will happen anyway.
It is this extra bit that is added on about transportation and storage of greenhouses gases; we need to think very carefully about what we are saying. We are talking
about very elaborate and interesting new technologies, which, if they could be developed commercially, would be a godsend, both to the global movement to reduce CO2
emissions and our contribution to it. It would allow the burning of fossil fuels, but in ways that did not emit CO2
and did not damage the climate. But this technology is not very far advanced. It is working in one or two places around the world. Billions have been spent on it, but the difficulties and sheer size of the engineering—of getting pipes into the North Sea and into the redundant oilfields, or areas where enhanced recovery will be enabled by higher pressure, delivered through the injection of CO2—is very much in the future and costs a lot of money.
What is necessary at this stage is to think clearly in terms of the possibilities for the future handling and sequestration of carbon emissions from carbon-generating activities rather than commit the authority to thinking about a particular aspect of it which may, frankly, never become a commercial reality and could impose colossal burdens on an industry in enormous difficulties. I have in mind two technologies. I defer here to the noble Lord, Lord Oxburgh, who is sitting not very far from me and is a far greater expert on the future handling of CO2. It is, of course, a very valuable gas. Indeed, an article in this morning’s papers by my noble friend Lord Ridley reminds us that, if handled correctly, CO2 has huge potential for improving the climate and our standard of living, bringing greenery to desert areas and encouraging all kinds of industries. One of the two technologies combines CO2 with CO2 already in the atmosphere, the phrase for which escapes me for the moment. It can then be turned very rapidly into carbon, which is an immensely valuable material used in many products. If we can get cheaper carbon, we can make huge advances in all sorts of materials and products and reduce the cost of those products.
The other technology, which again is still in its infancy but is very interesting, enables carbon to be sequestered and transformed into solid forms and eventually be used to produce lime-structured bricks and other building materials. All this obviates the need for pipelines and huge elaborate systems taking this material out into the North Sea into oilfields, former gas fields and other areas. Although it will not necessarily escape as it is not that kind of gas, there are problems with leakage containment in the future, all of which implies huge extra costs on somebody’s part.
I repeat that we are dealing with an industry that is at the moment, frankly, running out of money, is very short of funds and in a contractionary phase, so it would be most unwise to add this additional imposition to the objectives and activities of the authority. It would add to costs and create further uncertainty. We should concentrate on the areas that we know about. Powers exist in the Bill to alter the OGA’s objectives in practical ways according to ministerial requirement, if I am completely wrong and what is now a very remote and expensive technology, involving vast engineering and additional costs, suddenly becomes economic due to some unimagined technical breakthrough. That is always possible, and the Bill has the flexibility to allow for that. We do not need it in this amendment.