HC Deb 21 July 1980 vol 989 cc16-7
10. Mr. Greville Janner

asked the Secretary of State for Energy when he now estimates that the United Kingdom will be self-sufficient in the consumption of oil.

The Minister of State, Department of Energy (Mr. Hamish Gray)

A rate of oil production roughly equivalent to net self-sufficiency should be attained towards the end of the year.

Mr. Janner

What steps are the Government taking to ensure that when that happy day arrives we shall have enough oil for our own use?

Mr. Gray

The Government do not expect that there will be any danger of not achieving self-sufficiency for our own use through the 1980s. There is constant monitoring and the Government will take whatever action is necessary in due course.

Mr. Emery

Does my hon. Friend accept that the price of oil is not settled by international competition but fixed by the largest cartel that the world has ever known, one that can control the supply of oil? How long are the Government to follow that cartel's pricing and what steps will they take to try to ensure its break-up so that we can achieve proper competition on international pricing?

Mr. Gray

I am sure that my hon. Friend will agree that it would be wrong for us to under-sell oil from the United Kingdom continental shelf. We have ensured that we have never led the upsurge in oil pricing. We have merely followed it. United Kingdom oil has been sold at a figure comparable to that of similar oils in other parts of the world. We believe this to be the correct policy.

Mr. Douglas

When will the Minister make a statement on depletion policy so that we shall be able to gauge how long the considerable reserves in the North Sea could be used for the benefit of the United Kingdom economy? Secondly, will he indicate briefly the amount of United Kingdom oil that is now being exported?

Mr. Gray

My right hon. Friend will make an announcement soon on depletion policy. In 1979 approximately half of the oil produced from the continental shelf—39 million tonnes—was exported. That is continuing throughout 1980.

Mr. Banks

Does my hon. Friend agree that Britain's continued self-sufficiency in oil will depend largely on conservation measures? Will he, therefore, look at building regulations to ensure that new buildings and grants for the modernisation of old buildings are covered by regulations that ensure that they are properly insulated?

Mr. Gray

I assure my hon. Friend that those conservation measures are being considered by the Department of Energy and by my colleagues in the Department of the Environment.