HC Deb 14 January 1980 vol 976 cc1179-80
2. Mr. Dubs

asked the Secretary of State for Energy for how many years he expects the United Kingdom to remain self-sufficient in oil.

The Secretary of State for Energy (Mr. David Howell)

It is difficult to estimate demand and production with precision for more than a few years ahead, but it is likely that we shall be net self-sufficient in oil during the 1980s.

Mr. Dubs

Does not the Secretary of State for Energy agree that a slower rate of extraction would be in this country's best interests?

Mr. Howell

It has been made clear that the Government are considering the whole question of depletion and depletion policy very carefully indeed. We recognise that it is an important part of the future of oil policy.

Mr. Viggers

Does the Secretary of State agree that, if self-sufficiency is to continue over some period, the oil industry needs a firm framework within which to operate on the lines of the Varley assurances which need to be updated and superseded? When can we expect such a statement of Government policy? When it is made, will it be the subject of debate in the House?

Mr. Howell

I agree with my hon. Friend's assessment that a firm framework is needed. That is why we will not be rushed into what is an important policy framework. When policy decisions are reached clear statements will be made. Whether the subject is debated in this House is a matter for my right hon. Friend the Leader of the House. However, I am fully aware of the vital importance of this issue.

Mr. Douglas

Will the Secretary of State concede that part of this framework is an indication of pricing policy? Will he give some indication to the House what advice he is giving to BNOC on pricing policy at present, to avoid BNOC selling oil for roughly $30 a barrel when oil is being sold at $40a barrel on the so-called free market?

Mr. Howell

This is a slightly different question, but the policy for United Kingdom oil producers is that they should follow and not lead world oil market prices. The difficulty at present is to establish, as between producer and customer, what the world oil market prices are. The Government's policy is that we have an overall interest, as the Government of an oil-consuming nation, to see that the forces which shape world oil market prices are moderate.