§ 11. Mr. Proctorasked the Secretary of State for Energy if he will make a statement on the state of the oil industry in the United Kingdom.
§ Mr. Buchanan-SmithThere is an encouraging level of activity offshore. Downstream, considerable reorganisation has taken place in recent years and this should strengthen the industry.
§ Mr. ProctorIs my right hon. Friend worried about recent job losses in the oil refining industry? Does he have 10 any views about possible fluctuations in the world price of oil which will further reduce job opportunities in the British oil refining industry?
§ Mr. Buchanan-SmithI am fully aware that there has recently been considerable reorganisation in our industry. That reorganisation is in the interests of the industry's long-term strength. Our industry is now extremely competitive with industries throughout the world. Our capacity is much more in line with demand. It is in Britain's and other countries' interests that we work towards stable oil prices.
§ Sir David PriceDoes my right hon. Friend recognise that the current political instability of the near and middle east ensures that any forecast of world oil prices is highly speculative and that therefore the only secure policy is for the Government to support indigenous oil supplies and other forms of energy?
§ Mr. Buchanan-SmithI am sure that my hon. Friend is aware that I do not attempt to make such forecasts. I appreciate the problems that can arise. Compared with many other countries, Britain is fortunate to have an extremely strong and active indigenous oil industry.
§ Mr. RowlandsHas the Department of Energy made any assessment of what the pound falling 10 cents against the dollar will mean in terms of potential petrol price increases? Is there not a possibility in the new year of there being substantial price increases on the forecourt?
§ Mr. Buchanan-SmithI do not think that we could in any way examine prices quite as simply as the hon. Gentleman tries to do.