HC Deb 25 November 1985 vol 87 cc602-4
10. Mr. Kenneth Carlisle

asked the Secretary of State for Energy what is the latest estimate of recoverable reserves of oil in the United Kingdom sector of the North sea; and how this compares with the estimates over the three previous years.

Mr. Buchanan-Smith

The latest estimate of remaining recoverable reserves of oil in existing discoveries on the United Kingdom continental shelf is 1,225 million tonnes. The comparable figures for 1982, 1983 and 1984 were 1,475, 1,375 and 1,300 tonnes respectively.

Mr. Carlisle

Does my right hon. Friend agree that our North sea oil reserves will probably last longer than the most gloomy forecasts have suggested, due to the encouraging rate of discovery and to the better methods of extraction that are being developed? Is this not good news for those who are involved in the United Kingdom's North sea oil industry for the United Kingdom's economy generally?

Mr. Buchanan-Smith

My hon. Friend is right. The prospects for the industry are very good. It is worth while reflecting upon the fact that after 21 years the rate of discovery in this industry is still one in every five wells drilled. That figure should be thought about by those who criticise the success of this industry.

Mr. Bruce

I echo the Minister's answer, but will he point out to his friends in the City how much potential for investment there is in the North sea and how important it is to United Kingdom industry? Is it not regrettable that, although there is an opportunity for Britain to increase its share of technology by buying into American companies that are in difficulty, such as Combustion Engineering, there have been no British bidders for several months and no United Kingdom money has gone towards increasing its share of the market?

Mr. Buchanan-Smith

I am grateful to the hon. Gentleman for his support of the campaign that I am conducting to increase the competitive share of British firms in the industry. The success of the supply industry is related not just to our market, but to overseas markets. Companies that can build on the technology that we have created out of the North sea will have a very long-term international future. I wish that more companies would respond to the challenge.

Mr. Sayeed

Apart from our oil reserves, the United Kingdom has considerable gas reserves. British Gas is the only customer for the North sea oil and gas that is landed in this country. Can my right hon. Friend confirm that when British Gas is denationalised it will continue to be the permitted customer, or will other customers be permitted to bid?

Mr. Buchanan-Smith

I said in answer to an earlier question that under the Oil and Gas (Enterprise) Act 1982 there is scope for competition. I assure my hon. Friend that we shall look at this matter during the course of the legislation.

Mr. Rogers

Is the Minister not misleading the House when he suggests that there are expanding, recoverable reserves in the North sea? Is not the truth that the North sea reserves are on a declining curve? He should not mislead the House with a silly statement such as the one that he just made.

Mr. Buchanan-Smith

The hon. Gentleman does not know how to understand the statistics. If he reads in Hansard the answer that I gave, he may understand what I was saying. I was saying that the industry's prospects are extremely good. Of course there is a decline in the reserves, because we are using oil. Perhaps the hon. Gentleman is not aware that we are using oil. In that respect, he may be misleading himself more than anyone else. I hope that he will join those who praise British industry's achievements, rather than decry them.