HC Deb 08 May 1978 vol 949 cc749-51
3. Mr. Patrick McNair-Wilson

asked the Secretary of State for Energy if he is satisfied with the current level of onshore oil exploration in the United Kingdom.

Dr. J. Dickson Mabon

Yes, Sir. The level of survey work on shore under exploration licences is satisfactory. Further production licences which I hope to issue later this year under arrangements now being considered should lead to increased drilling activity, and hopefully production.

Mr. McNair-Wilson

Can the Minister be a little more forthcoming? Since the uprating of the Dorset oil field, which now puts it in the small North Sea category, can he tell us where new oil is likely to be found and also what environmental guidelines are being laid down by the Government for onshore discoveries which could have quite a serious effect on the environment?

Dr. Mabon

The second part of the hon. Gentleman's question is primarily a matter not for me but for my right hon. Friend the Secretary of State for the Environment. I shall write to the hon. Gentleman about that so that we can spell it out. With regard to the New Forest area itself, which is an area of possible prospection, there are six existing licences. Seismic studies have been done, not on all of them but on some, and it is up to the companies concerned to decide where they want to drill. With permission, I shall send the hon. Gentleman a map of the areas in his constituency that are affected.

Mr. Budgen

Will the Minister tell the House what assurances, if any, have been given to those who wish to explore for oil about the future price of oil into perhaps the next 10 years? Will he tell the House whether the Government have offered any assurance that they will help to try to keep up the price of oil?

Dr. Mabon

It certainly would not be in the interests of the United Kingdom if the price of oil was, say, to be halved, because North Sea oil would then be entirely uneconomic. But no one country, even the great Saudi Arabia, could ever absolutely influence and determine the price of oil in the next decade. Only someone with a magnificent crystal ball would be able to give the assurance that the hon. Gentleman seeks.