HC Deb 25 July 1983 vol 46 cc776-7
12. Mr. Bruce

asked the Secretary of State for Energy whether he is satisfied with the current level of North sea oil development activity.

Mr. Peter Walker

I am satisfied with the current level of North sea oil developments; 22 oilfields are in production and two more are expected to come on stream shortly.

Mr. Bruce

Does the Minister acknowledge that the taxation regime has led to a severe gap in orders for fabrication yards, which is causing real concern, and that there is no evidence that it can be plugged? Does he also acknowledge that although oil development is going ahead, the collapse of the gas-gathering system has meant that many of the associated gas developments are not going ahead and that is why we are having to pay up to 35p a therm to import Norwegian gas?

Mr. Walker

I disagree with the hon. Gentleman on the last point. As for the general position, the announcements made in the Budget and the changes that are taking place—in royalties, for example—will be of considerable assistance in the spheres mentioned by the hon. Gentleman.

Mr. Skeet

There have been 147 significant discoveries of oil and gas in the North sea. Does my right hon. Friend agree that recent changes in legislation have made it probable that at least 20 fields will be developed?

Mr. Walker

I should not wish to put an estimate on the figures, but I believe that a great deal of activity will now take place to the benefit of the country and of the supplying industries.

Mr. Kennedy

Does the Secretary of State concur with the view of the previous Minister of State, Department of Energy, Lord Gray, that there is one platform construction yard too many in Scotland?

Mr. Walker

I do not know the specific statement to which the hon. Gentleman refers. The new measures which are being taken should mean more for that industry.