Lord CAMPBELL of CROYMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how many exploration rigs are now operating in the North Sea and what was the estimate made in April 1975 by the Government of the number which would be operating there at any one time in this year's drilling season.
§ Lord LOVELL-DAVISMy Lords, 26 drilling rigs are now engaged in exploration and appraisal work on the United Kingdom Continental Shelf. The April 1975 Brown Book forecast that the average number of rigs operating at any one time during 1975 would be 30.
Lord CAMPBELL of CROYMy Lords, have not six rigs recently left the British sector, four moving to the Norwegian sector, and the others to the Irish and French sectors? Is the noble Lord aware that the slower tempo than that which had been expected at the height of the summer drilling season is largely due to this Government's policies?
§ Lord LOVELL-DAVISMy Lords, there are bound to be variations from week to week in rig movements, for a wide variety of reasons; not least because the majority of rigs are independently operated, moving from company to company, and from block to block, and from time to time they have to return to base for maintenance and refit. The fact remains that the average number of rigs operating during the first six months of the year was little short of 30; in fact, during March and April of this year the average was 31 rigs. In February and May the average was 30, in January it 1704 was 28, and in June it was 25. That gives an average of over 29 rigs. In answer to the noble Lord's other point, good progress is being made on development and there is nothing to suggest that exploitation of any of the commercial fields is being delayed. It remains the Government's policy to encourage the rapid growth of oil production and to achieve the levels forecast in the Brown Book. Our discussions with the companies on participation take full account of the problems of marginal fields, as did the arrangements announced in February for the petroleum revenue tax.
§ Lord HAILSHAM of SAINT MARYLEBONEMy Lords, I thank the noble Lord for his comprehensive reply, but I am sure the House would be fascinated to know whether the answer to my noble friend's supplementary question was Yes or No.
§ Lord LOVELL-DAVISThe answer is No, my Lords.
Lord CAMPBELL of CROYMy Lords, I too am grateful for the comprehensive reply. But does the noble Lord realise that the information he has given about the average number of rigs operating in recent months, and the fact that there was a greater number in the North Sea than there are now at the height of the drilling season, only confirms the slowing down in the tempo of exploration and activity? Is the noble Lord further aware that the tempo should be increasing rapidly now if we are to become self-sufficient in 1981?
§ Lord LOVELL-DAVISMy Lords, the important fact is that development is increasing very rapidly indeed. Exploration and drilling is obviously of crucial importance. But one cannot necessarily assume that the tempo of exploration and the appraisal of drilling should go on at an increasing rate all the time. It is an extremely costly business. It costs £2 million to drill a hole, and a rig costs £20,000 a day to maintain. Companies will not involve themselves in this type of expenditure unless they have very good reasons for doing so.
§ Lord AVEBURYMy Lords, has the noble Lord refreshed his memory about the comments of the right honourable lady Mrs. Margaret Thatcher, who, when in 1966 was Opposition spokesman 1705 on energy in the House of Commons, made precisely the same kind of allegations in relation to exploration for gas in the Southern sector of the North Sea as we have heard from noble Lords on the Conservative Front Benches this morning? Bearing in mind that the gas development programme has been extremely successful, and that the targets outlined in the 1965 White Paper have been realised, is it not likely that these fears expressed today will be equally false?
§ Lord LOVELL-DAVISYes, my Lords. Since our forecasting has been called into question, I should say that we seek to be neither optimistic nor pessimistic. But we wish to keep our feet on the ground and resist being unduly swayed by the ebb and flow of political discussion which sometimes seems to colour the figures one reads. Early last year, there were those of us in the industry who were accused of extreme pessimism. It was suggested that prospects were so dazzling that 50 rigs might be operating on the United Kingdom Shelf, while we were forecasting 25. In the event, the average was 24½. Last winter, the political pendulum swung the other way and stories were circulating of poor prospects, dwindling discovery rates and a general flight of rigs away from British waters. What has followed this year is a remarkable succession of discoveries—17 so far—and a higher number of rigs operating than at any previous time, as we forecast.
§ Lord WYNNE-JONESMy Lords, would my noble friend not agree that the output in the next 10 years depends upon platforms rather than upon exploration rigs, and that the development of platforms is going ahead extremely satisfactorily?
§ Lord LOVELL-DAVISYes, my Lords, as I have said.
Lord CAMPBELL OF CROYMy Lords, as it is less than four years since the announcement of the first commercial oilfield in the British sector, ought not an increase in activity to be taking place anyway? That is not an answer. Can the noble Lord agree with us that the activities should be taking place at a much higher rate now, at the height of 1706 the summer season, if we are be self-sufficient in 1981?
§ Lord LOVELL-DAVISNo, my Lords. I think we can go as fast as the job will allow us to go. This is not even like laying out a farm and saying in advance what crops we are going to grow. It is a highly dangerous area and the most unpredictable sea in the world. Development is proceeding at a very satisfactory rate. We are not complacent about this, but the fact is that we are now moving into the first phase of development and we are doing so satisfactorily.
§ Lord LEATHERLANDMy Lords, can my noble friend say how many gallons of oil have been brought ashore under this Government and how many were brought ashore under the Tory Government?
§ Lord HAILSHAM of SAINT MARYLEBONEIs it not well known, my Lords, that all the oil was put there by Mr. Wilson?