§ Mr. Haywardasked the Secretary of State for Energy what assessment he has made of the implication for the future rate of North sea oil developments of the recent fall in crude oil prices; what assessment he has made of the consequential effects on employment in the associated industries with particular regard to their geographical concentration; and if he will make a statement.
§ Mr. Buchanan-SmithIt takes up to five years to develop a field, which may then be producing oil for a further 15 years. Accordingly, it is the companies' expectation of prices over such periods which matter, not the current spot rate. I believe that development and exploration in the North sea, with its attendant opportunities for British industry and employment, will continue.