HC Deb 12 April 1976 vol 909 cc376-7W
28. Mr. Stonehouse

asked the Secretary of State for Energy what is the estimate of the value of Great Britain's North Sea oil and gas reserves at current prices.

Mr. Eadie

On current estimates of total recoverable reserves from the presently designated areas, and at present equivalent oil prices, the value may lie between £180 billion and £300 billion.

Mr. Cant

asked the Secretary of State for Energy whether he will now make a statement on the progress of his negotiations with the oil companies in relation to his policy objective of securing the refinement of two-thirds of North Sea oil in this country.

Mr. Benn

Consultations with the oil companies last year on the refining of North Sea oil suggested that the industry's plans were broadly consistent with our expectations. It is, however, too early to forecast the pattern that will emerge as production approaches the level of national demand. Discussions with the industry are continuing.

Mr. Skeet

asked the Secretary of State for Energy (1) how he proposes, consequent upon Mr. Ray Willmott's statement in a speech in San Antonio, to implement the proposal that two-thirds of North Sea oil production should be refined in the United Kingdom; and under what section of a current Act of Parliament he would inhibit exports of crude oil to existing customers in the Community;

(2) up to what volume of production of crude oil from the North Sea he will insist that two-thirds of Continental Shelf production must be refined in the United Kingdom.

Mr. Benn

The Government's policy on the refining of North Sea oil was announced by my right hon. Friend, the previous Secretary of State, on 6th December 1974—[Vol. 882, c. 646–8]. He said that it would be reasonable to expect up to two-thirds of North Sea oil to be refined here, depending on the level of production, and that it was our aim to implement this policy through discussions with the companies concerned. These points were repeated in Mr. Willmott's San Antonio speech, which also made it clear that the two-thirds expectation applied up to the point where production at least reaches the level of national demand.