§ Mr. Deakinsasked the Secretary of State for Energy what studies his Department has made of the relationship between the quantity of United Kingdom North Sea oil produced and the price for North Sea oil; and if he will make a statement.
§ Mr. Buchanan-SmithThe price of oil on the world market, including North sea oil, is determined by the balance of demand and supply. The level of oil production on the UKCS is only one element and accounts for some 6 per cent. of world oil production. Over the last two years there has been no observable relationship between world oil prices, which have undergone major fluctuations, and UKCS production, which has been broadly stable.