HC Deb 21 February 1977 vol 926 cc1019-21
11. Mr. Tim Renton

asked the Secretary of State for Energy until what year he considers that the North Sea reserves will enable the United Kingdom to be self-sufficient in oil and gas.

Dr. J. Dickson Mabon

Our proved and probable reserves should last into the 1990s at least. The exact period of self-sufficiency depends on the scale of reserves still to be discovered and the Government's licensing and depletion policy during the 1980s.

Mr. Renton

Can the Minister go further and tell us, on his present best estimate, how long self-sufficiency, particularly in oil, will last? To what extent will he, so far as it lies within his power, ensure that the benefits of this self-sufficiency are not frittered away in the future by extravagant Government spending?

Dr. Mabon

The last point is a large issue of debate and I shall not go into that now. Our estimate is between 3,000 million and 4,500 million tons, which is an enormous range and indicates the difficulty of trying to assess exactly how long we shall maintain self-sufficiency of 100 million tons a year or thereabouts. The Brown Book, when it is published later this year, will show a shift, as there was last year, in recoverable reserves as distinct from absolute reserves.

Mr. Greville Janner

When are we likely to be self-sufficient in oil? Can my right hon. Friend give an indication, at the present value of the pound, of the the value of the oil at that time?

Dr. Mabon

We are on target for our aim of being self-sufficient in the calendar year 1980. As to the value of the oil then, I should have to consult OPEC.

Mr. Bowden

Does the Minister agree that it would be morally wrong for the country to expand oil production above what we need and to use the money that would be gained to subsidise standards higher than those that we are earning, as we shall then leave nothing for our great-grandchildren?

Dr. Mabon

That argument considerably appeals to me as a Presbyterian. Our first object is to achieve self-sufficiency. The Government will have to take a decision soon on depletion and refinery policies.

Mr. Atkinson

Will my right hon. Friend reconsider the answer that he has just given about consultation with OPEC? Does he realise that we should not be allowed to join OPEC within the existing rules, and why is it assumed that the Government will want to charge the same price as OPEC countries for our own product?

Dr. Mabon

We do not have to join a body in order to consult it. It is fair to say, however, that although we do not have to reflect the oil prices charged by OPEC, they are bound to be a factor in deciding the economic well-being of the country.

Mr. Gray

Does the Minister agree that, in order to extend the period during which we shall be self-sufficient, there is a strong case for the Government looking again at the treatment of marginal fields?

Dr. Mabon

Under present legislation —which I am sure the hon. Gentleman knows about—we have not received any case that we have been able to look upon favourably. But it is a matter that agitates and concerns the Government, and if we are given specific evidence about any of these probelms we shall willingly consider it.