MP challenges industry to defend against calls for UK to scale back on oil exploration

Gordon MP Colin Clark has challenged oil and gas industry leaders to defend the sector and its “clean” future against growing calls for the UK to scale back on exploration.

In a speech to the Sea Lion Project Workshop event in Aberdeen, Mr Clark said that the North Sea sector is an “essential part of decarbonising the economy”.

The Scottish Conservative politician praised the industry for work done already to diversify and embrace new technologies.

However, he said a “narrative” against fossil fuels was developing at pace in Westminster – with SNP and Liberal Democrat politicians openly discussing moving away from further support for the sector.

In a debate last week, former Energy Secretary Sir Ed Davey MP said that the UK should “reduce and ultimately stop” new oil exploration.

And SNP Tommy Sheppard said during the same debate that it was time to “jump ship” from investing in fossil fuels.

In his remarks to delegates at the Marcliffe Hotel, Mr Clark said: “Oil and Gas is an essential part of decarbonising our economy.

“An estimated 7000 trillion cubic feet of natural gas is yet to be explored. It will play a massive part in further decarbonising the world’s economy.

“Hydrogen derived from natural gas is the fuel of the future. Along with carbon capture, it answers so many of the world’s demands with a changing climate.

“But are we defending the space? Is the industry articulating to the consumers and the population the potential of clean oil and gas?”

Mr Clark added: “Where is the narrative to defend oil and gas?

“Where are the Sunday paper headlines - hydrogen fuel of the future?

“Where are the documentaries of brilliant subsea technology, the space exploration of Scotland with ROVs and world class new techniques.

“I believe projects like Sea Lion are ground-breaking, that the spins offs from oil and gas will shape our world, that hydrogen from natural gas will save the planet, that oil as a raw material may not be burned but will be used for centuries as an essential ingredient for transport, manufacturing, pharmacology, chemicals let alone aviation, roads and everything we use now.

“I will continue to sing the praises of this sector, and you all need to do the same.”

Ends

Notes to Editors

Colin was speaking at the Sea Lion Project supply chain opportunities workshop event at the Marcliffe Hotel in Aberdeen.

The Sea Lion development will open up a new oil and gas province in the Falkland Islands, with the potential to produce in excess of 1billion barrels of oil.

Full text of speech below:

Welcome to the Sea Lion Project Workshop and networking event here at the wonderful Marcliffe. Thank you to Aberdeen and Grampian Chamber of commerce in partnership with Premier Oil.

A special welcome to the fellow elected members from the Falkland Islands Especially to the Chief Executive and Director of Mineral Resources ………………….

None of us need any reminding the special bond that exists between the United Kingdom and the Falkland Islands, 27 years ago in 1982 Margaret Thatcher refused to abandon the people of a far off island Not for her “a quarrel in a faraway land between people of which we know nothing”

Therefore I am delighted to meet democratically elected colleagues from that faraway land. Checking Wikipedia I see anyone over 18 can vote in the Falkland Islands, apparently unless insane and you are disqualified.

After 3 years of Brexit debates 1/3 of Parliament may be disqualified.

Oil and Gas is Aberdeen and the NEs area of expertise.

My Gordon constituency has the biggest foot print of Oil and Gas in the NE. From multinationals like BP and Akor Solutions to Stats and Brimmond Group in Kintore The Sealion development sounds like a huge but very challenging opportunity for NE supply companies.

Having lived in the NE most of my life, I am conscious of the ups and downs of the sector.

The O&G sector has expanded beyond the North Sea, recognising GLOBAL opportunities. The economic importance to the NE is huge. We are 8% of the population but 18% of the Scottish Economy.

O&G supports 280000 jobs in the UK , 120000 in Scotland. I like to quote to ministers we have the highest density of technicians and engineers anywhere in the UK.

The busiest heliport in the Northern Hemisphere. I take every opportunity to showcase the O&G industry and the NE. Only two weeks ago the former Foreign Sec Boris Johnston visited.

Steve Szalay from Aberdeen Airport and Alan Corbet from Bristow wowed Boris that there were 200 chopper movements a day.

Boris exclaimed “All to oil rigs” , no I said some are Heli skiing. Boris got the joke.

There is a narrative O&G in the NE is all about decommissioning, and not exploration. Not true, O&G will be the mainstay of our energy policy for decades.

Natural Gas, mainly North Sea has decarbonised electricity production. We are at levels of CO2 emission not seen since 1888.

Meanwhile 45% of Germanys power comes from the most polluting coal lignite.

The world has used to date 3000 trillion cubic feet of natural gas. There is 3 times as much power transported in the gas grid than electricity in the UK.

O&G is an essential part of decarbonising our economy.

An estimated 7000 trillion cubic feet of natural gas is yet to be explored. It will play a massive part in further decarbonising the world’s economy.

Hydrogen derived from natural gas is the fuel of the future. Along with carbon capture it answers so many of the worlds demands with a changing climate.

But are we defending the space. Is the industry articulating to the consumers and the population the potential of clean Oil and Gas.

Last week the former Energy Minister, the Liberal Sir Ed Davies brought a debate to the House of Commons “That this House has considered financial and ethical risks of investments in fossil fuel companies by pension funds”

He spoke about decarbonising capital, the City of London, not only here but globally. “We should not invest in more fossil fuels , we should disinvest.”

Tommy Sheppard SNP MP told the debate “Over the next 10-15 years , increasing governmental action against fossil fuels and dirty technology will make their returns worse. Now is the time to jump ship and to disinvest from dirty technology.”

Sir Ed Davey replied “ Lets reduce and ultimately stop exploration of FURTHER fossil fuels.”

On a weekly basis I and my NE colleagues push back against this narrative.

But there is a vacuum. I applaud Statoil changing its name and moving on a small scale into ground breaking renewable technology.

I applaud Shell making executive remuneration dependant on reaching decarbonising targets.

The whole supply sector has embraced new technology and opportunities.

But where is the narrative to defend O&G, where is the Sunday Paper headlines Hydrogen fuel of the future, where are the documentaries of brilliant subsea technology, the space exploration of Scotland with ROVs and world class new techniques.

I believe projects like Sealion are ground breaking, that the spins offs from O&G will shape our world, that Hydrogen from Natural Gas will save the planet, that Oil as a raw material may not be burned but will be used for centuries as an essential ingredient for transport, manufacturing, pharmacology, chemicals let alone aviation, roads and everything we use now.

This is a fantastic industry , a dynamic world class industry, like the Falkland Islands 27 years ago its worth fighting for.

I hope you all have a great workshop and the networking bears fruit.

I will continue to sing the praises of this sector, and you all need to do the same.