HC Deb 09 December 1991 vol 200 cc592-4
4. Mr. Donald Thompson

To ask the Secretary of State for Energy what was the level of capital investment in the North sea in 1990, and in the first half of 1991.

The Parliamentary Under-Secretary of State for Energy (Mr. Colin Moynihan)

Capital investment in the North sea in 1990 was £3.5 billion. In the first half of 1991 it was £2.1 billion, which is some 30 per cent. higher than in the first half of 1990.

Mr. Thompson

Is my hon. Friend aware that continuity of orders is most important for manufacturers in my constituency who produce valves, pumps and pipes for the North sea oil industry? I welcome my hon. Friend's answer.

Mr. Moynihan

In this industry as, no doubt, in the rest of the manufacturing sector in my hon. Friend's constituency, my hon. Friend has continued to work assiduously for his constituents. I believe that we shall have greater continuity of orders throughout the 1990s than we did in the 1980s, due to the maturing nature of offshore oil and gas work, including refurbishment, sub-sea systems and satellite developments.

Mr. Wilson

In relation to the North sea, I am sure that the Minister will recall that during the Kincardine and Deeside by-election, various hints and half-promises were given about the transfer of the petroleum exploration division jobs to Aberdeen. We understand that consultants have now been appointed, so can the Minister give us an assurance about the timetable for those inquiries? Will he also guarantee that there will be an announcement this side of the general election? The Government may believe that once the Kincardine and Deeside election was out on the road—somewhat unsuccessfully for the Government—those promises might be out of sight and out of mind, but they are still in the mind of the Opposition.

Mr. Moynihan

We are seeking tenders from a range of consultants to review the location of the petroleum engineering directorate. My right hon. Friend the Secretary of State will announce who is to carry out that review as soon as the consultants have been chosen.

Dr. Michael Clark

Will my hon. Friend confirm that 1990 was an all-time record year for activity in the North sea, with the drilling of 224 exploration and appraisal wells resulting in 16 significant finds? Will my hon. Friend also confirm that 1991 has been a vibrant and exciting year in the North sea? On the eve of discussions at Maastricht, will my hon. Friend confirm that such activity in the North sea enables this country to provide 82 per cent. of Europe's indigenous oil?

Mr. Moynihan

I can confirm those three points. If company intentions on wells to be drilled, as recorded in a survey by my Department, are realised, the total of such wells in 1992 could yet again be extremely high indeed, as high as 220.

Mr. Hood

I welcome the capital investment, but will the Minister join me in condemning those oil companies which use the Economic League to blacklist workers and potential workers? Surely the best way to look after the industry is to stop the nonsense of blacklisting people simply because they belong to a union or for whatever other reason?

Mr. Moynihan

I think that is it is the hon. Gentleman who is talking nonsense on this occasion. As my right hon. Friend the Secretary of State has said on many occasions in the House, the Department is more than happy to receive representations from the hon. Gentleman or anyone else about specific cases of blacklisting.

Forward to