HC Deb 28 February 1983 vol 38 cc10-1
10. Mr. McQuarrie

asked the Secretary of State for Energy if he has any plans to meet the oil developing companies with a view to discussing the exploration and development of onshore projects in the United Kingdom.

Mr. Lawson

I have no plans to do so at present. My hon. Friend will be interested to note that since coming into office the Government have awarded 48 onshore production licences. That is 48 more than under the previous Administration.

Mr. McQuarrie

I welcome my right hon. Friend's reply. However, will he give me an assurance that, as in considerable areas on the north-east coast of Scotland and in many other parts of Scotland onshore drilling is possible and small oil companies are unable to afford the offshore costs of drilling, he will continue to support applications from small companies to do onshore drilling?

Mr. Lawson

My hon. Friend is right. The costs of onshore drilling are considerably cheaper. That is why the onshore oil industry, which is flourishing now, is characterised by small companies. Long may it continue to be so.

Mr. Douglas

Will the Secretary of State say how many of the licences applied for are in production? Will he give us an assurance about safety measures, because some onshore drilling has been extremely dangerous, particularly in Yorkshire?

Mr. Lawson

The number of wells drilled onshore since the Government came to office is 39. Safety is of the utmost importance. I recognise the hon. Gentleman's interest in that subject, both onshore and offshore, but it is fair to say that the dangers offshore are considerably greater than those onshore. Nevertheless, a careful watch is kept to ensure that all necessary precautions are taken onshore as well as offshore.

Dr. J. Dickson Mabon

As onshore and offshore production will peak in 1985 and then fall by 40 per cent. in the five years after that, does the Secretary of State realise that it is high time that we got on with developing the marginal fields?

Mr. Lawson

I agree that the development of new fields is important. I am sure that in recent months the right hon. Gentleman will have welcomed the annex Bs granted to the Clyde field and the north Alwyn field. The right hon. Gentleman will also be aware that the state of the oil market is such that at present the encouragement to develop new marginal fields is not as great as it was. Nevertheless, I agree with the right hon. Gentleman that it is important that we go ahead with those fields.

Mr. Eggar

Have there not been unfortunate delays in bringing onshore developments on stream? Is there not a case for my right hon. Friend's Department urging local authorities to act more quickly on planning applications from companies?

Mr. Lawson

My hon. Friend is right. There have been cases in which there have been unconscionable delays by planning authorities. Planning permission from the local planning authority is essential if onshore drilling is to go ahead. It would be wholly wrong for the Government to bring pressure to bear on local authorities. It is for the local authorities to decide on proper planning and environmental criteria. However, there is scope for some of the less good to follow the example of the best.

Mr. Rowlands

Is not the best onshore site Wytch Farm? Has that not been developed by the imagination and skill of British Gas in partnership with British Petroleum? Are not the Government destroying the best partnership on the best onshore site?

Mr. Lawson

There is no question of destruction. Wytch Farm is far and away the most prolific field so far discovered onshore in the United Kingdom. It is being developed by British Gas and BP. What the Government have decided and what Parliament approved is that the 50 per cent. share at present held by the state through British Gas should be transferred to the private sector.