§ 8. Mr. FrenchTo ask the Secretary of State for Energy what is his Department's estimate of North sea oil reserves and how long it is anticipated they will last; and what were the corresponding estimates five years ago.
§ Mr. MoynihanMy Department's central estimate of reserves remaining in existing discoveries at 31 December 1985 was 1,230 million tonnes. The corresponding estimate at 31 December 1990, after production of 549 million tonnes in the intervening period, was 1,195 million tonnes. These estimates confirm that the United Kingdom will remain an important oil producer.
§ Mr. FrenchDo not the figures reveal that those independent oil analysts who, in the early and middle 1980s, forecast a substantial depletion of United Kingdom resources in the early 1990s got it wrong? Is not the position that the United Kingdom will remain a very substantial oil producer until well into the next century?
§ Mr. MoynihanIt is certainly the case that, due to the substantial improvements in the technical ability to recover oil, in particular by means of enhanced oil recovery techniques, many of the past estimates have proved inaccurate. Many of the reserves that were not then technically capable of being produced economically will come on stream and, in my view, will ensure that we are a major oil producer until well into the next century.
§ Mr. DoranAs well as North sea oil, we have also been fortunate enough to discover gas in the North sea. Can the Minister provide similar figures for the amount of gas discovered in the North sea and an estimate of the life of our gas supplies? That issue is the subject of debate, given the recent Office of Fair Trading report into British Gas. I should also be interested to hear the Minister's views on the Government's policy regarding gas imports. I noticed that last week permission was given for gas exports. Will the Minister make a statement on that issue, too?
§ Mr. MoynihanIn 1990, gas produced from the United Kingdom continental shelf increased to 50 billion cu m, compared with 45 billion cu m in 1989. That included gas used by operators for drilling and production operations. As for gas imports and exports, United Kingdom continental shelf gas reserves should also be capable of supplying the expanding United Kingdom gas market well into the next century. The Government's objective is to work towards freer trade in gas throughout Europe. For that to happen, we need to be able to export United Kingdom continental shelf gas. The European gas market, which is dominated by large and often state-controlled monopolies which shun competition, needs to be liberalised.
§ Mr. Simon HughesGiven that we need to ensure that we should have as a priority the conservation of resources and energy efficiency, whatever the amount of reserves of oil and gas, what progress has been made by the Department and the Treasury in discussions with the European Community on the value added tax harmonisation talks with a view to the introduction of a lower level of VAT for environmentally friendly technologies which conserve resources?
§ Mr. MoynihanI will happily refer the hon. Gentleman's latter point to my right hon. Friend the Chancellor of the Exchequer. Energy conservation and environmental pressures are rightly being placed on oil and gas producers in the North sea. A very high priority is placed on both issues. I can assure the hon. Gentleman that his concerns are well reflected in all the discussions between operators and Ministers.
§ Mr. DickensWill my hon. Friend confirm that the greatest danger to the North sea would be an incoming Labour Government, who would seek to shackle the oil and gas companies by imposing new controls and high taxes?
§ Mr. MoynihanThe answer is yes.