§ The Earl of LAUDERDALEMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government when they propose to offer a new round of licences for exploration of the Continental Shelf, and in which areas.
§ Lord BALOGHMy Lords, I am not able to say when the next round of offshore licensing will be held or which areas will be offered. However, I can say that, since the last round was over three years ago, further licensing is being considered, not without a sense of urgency. There are still a number of very attractive areas of the Continental Shelf which should be exploited in accordance with the policies laid down in the White Paper.
§ The Earl of LAUDERDALEMy Lords, while thanking the noble Lord for that reply, may I ask him whether this next round is being delayed pending the result of the Government's monopoly seismic surveying?
§ Lord BALOGHMy Lords, the noble Earl knows very well that when a general licence is issued it means that the oil companies can undertake any research they wish and that is now the case.
§ The Earl of LAUDERDALEMy Lords, is the noble Lord aware that he has misunderstood my question—possibly deliberately, because we are old friends at this? Would the noble Lord tell us whether the issue of the next round of licences is being delayed pending the result of the Government's seismic surveys, which would, of course, go much more rapidly if they allowed the oil companies to help them?
§ Lord BALOGHCertainly not, my Lords; licensing will be undertaken in good time to make the best use of the new legislation which I hope is to be introduced into this House later this month.
Lord JANNERMy Lords, in view of the reply of my noble friend, would he see to it that the Government pursue with speed all possibilities of exploiting this 1001 supply of oil which is available and to which he has referred, having regard to the fact that the energy problem is so extremely important at the present moment?
§ Lord BALOGHMy Lords, at the present time there is no obstacle in the way of exploiting the designated and licensed territories. In fact, about 200 wells have yet to be dug to complete the present programmes. I am glad to say that the number of rigs has increased lately.
§ Lord SLATERMy Lords, is my noble friend aware that, in order to meet the position about which the noble Earl, Lord Lauderdale, is asking, a survey must first be carried out before one can think of issuing licences? Surely to goodness it is Government policy to carry out this survey and then determine what licences there shall be!
§ Lord BALOGHMy Lords, I believe that my noble friend is under a misapprehension. Anybody can carry out seismic surveys in undesignated areas. In designated areas, when licences are issued, surveys are first carried out and geological exploration is then undertaken.
§ The Earl of LAUDERDALEMy Lords, in thanking the noble Lord for coming to my rescue by replying to the last question, may I ask whether he expects that there will be a keen market for the next round of licences in view of the recession in the North Sea oil business in the past year?
§ Lord BALOGHMy Lords, I should grateful if the noble Earl could repeat the last sentence of his question.
§ The Earl of LAUDERDALEMy Lords, I asked whether the noble Lord expected a good market for the next round of licences in view of the evident recession in oil exploration in the Continental Shelf during the past year, as has been attested by company executives, one after another, the oil journals and the rest?
§ Lord BALOGHMy Lords, the noble Earl is too well informed to pay overmuch attention to what oil company presidents said about participation in the last round of negotiation. I can assure him that interest is very keen indeed. So keen is the interest in finding 1002 new sources of oil that the Egyptians were able to issue a licence to the Esso Company at 80 per cent. participation and 50 per cent. tax, which is far worse than any conditions we have in mind.
§ Lord SLATERMy Lords, is my noble friend aware that, in view of the reply which he gave to my supplementary question, he is proving to himself and to the House his lack of knowledge in regard to geological surveys and what they involve? That is one of the main reasons why I put the supplementary question.