HC Deb 13 May 1991 vol 191 cc5-6
6. Dr. Twinn

To ask the Secretary of State for Energy what was the level of capital investment in the North sea in 1989 and 1990; and what level he expects it will be in the current year.

Mr. Wakeham

Capital investment in the North sea increased by 30 per cent. from £2.7 billion in 1989 to £3.5 billion in 1990. I expect that rapid growth to continue in 1991.

Dr. Twinn

Given that encouraging answer and the investment announced last week in the Alba field and the Everest Lomond field, does my right hon. Friend agree that production from the North sea continues to provide good news for Scotland and for England, continues to confound the pessimists who talk down the North sea and brings good news for gas and oil consumers in Britain?

Mr. Wakeham

My hon. Friend is right. Last Tuesday I was able to announce the approval of two major new schemes. The Chevron-operated Alba field and the Amoco-operated Everest/Lomond CATS—central area transmission system—project involve investment of £2.4 billion. In total, 11 development projects have been approved so far this year. The total value of new orders placed for goods and services for the United Kingdom continental shelf in 1990 rose to a massive £6.2 billion. That is an increase of over 60 per cent. compared with the previous year.

Mr. Holt

Does my right hon. Friend agree that although those figures are most welcome, there is now a grave danger that there will be a concentration of gas power stations on Teesside and, consequently, of power lines that flow from them, and that it is necessary for the Government to have a strategy, so that power stations are located throughout the country and not concentrated in one area and pylons do not all emanate from Teesside? Although the gas fields are near the north-east coast, it is time that we recognised that other parts of the country use electricity and should take their fair share of the environmental problems.

Mr. Wakeham

Yes, indeed. My hon. Friend makes a fair point and I understand his constituency concern, but he would not expect me to comment in detail on those matters because he knows that they are, or will be, subject to planning applications before approval and that all considerations will be properly taken into account when they are received.