Oil and Gas (Hansard, 18 April 1978)

§ Mr. Benn

I have today published the annual "Brown Book" report on the development of the oil and gas resources of the United Kingdom. It covers offshore oil and gas activity last year, together with some new estimates of reserves and prospects for the future. I have placed copies in the Library of the House and in the Vote Office stores.

The report is a very encouraging one. It demonstrates clearly the considerable economic impact that oil development is now having on the economy. One indicator is the build-up of oil and gas royalties from £44.2 million in 1976 to £228 million last year. The almost 38 million tonnes of oil production in 1977 was valued at over £2,000 million and the overall benefit to the balance of payments was a similar amount.

The report notes a sharp increase in exploration and appraisal activity combined in the second half of last year and forecasts the maintenance of that momentum in 1978.

Oil production for 1978 is expected to be between 55 million and 65 million tonnes. This build-up of production will continue with three new oilfields coming on stream in 1978 and the opening of the Sullom Voe oil terminal in Shetland.

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The United Kingdom, says the report, remains firmly on target for oil self-sufficiency in 1980.

The report refers to the work done on oil emergency contingency plans following the Ekofisk field blow-out last year. It points to a reduction in both fatal and serious accidents despite an increase in the work force on offshore installations from around 9,200 in 1976 to about 12,100 in 1977.

One of the most encouraging aspects of the report is the number of new oil-field developments around the United Kingdom which have either got under way in the past year or are expected to start shortly.

This, above all, demonstrates that the North Sea remains one of the most economically, technically and politically attractive areas for offshore investment around the world.