§ Mr. Warrenasked the Secretary of State for Energy whether he will now make a statement on the Government's intentions with regard to imposing production cuts on United Kingdom continental shelf oilfields.
§ Mr. LawsonOn 23 July 1980, my predecessor announced to the House the Government's general approach to oil depletion policy. In that statement, however, he left open the question of oil production cutbacks which, under the assurances given to the oil companies by the right hon. Member for Chesterfield (Mr. Varley) on 6 December 1974 and honoured by the present Government, started to become available from the beginning of this year. After very careful consideration of all the relevant factors, I have decided not to impose such cutbacks, at least until the end of 1984.
This will allow the oil industry a firmer basis for its exploration of and investment in the United Kingdom continental shelf which will help to increase oil supplies in the 1990s and beyond. My decision is also in line with the conclusions of the Select Committee on Energy in its recent report on North Sea oil depletion policy to which the Government will be responding in due course.
Without prejudice to the Government's response to the Select Committee, I shall continue to consider the implementation on a case by case basis of the other measures announced by my right hon. Friend. In particular, I shall continue the policy of ensuring that the development of new and existing fields proceeds on the basis of good oilfield practice consistent with optimum oil and gas recovery and that wasteful gas flaring is minimised.