§ Mr. Wallaceasked the Secretary of State for Energy whether he has quantified the effect of the drop in the oil price on employment in oil related industries (a) offshore on the United Kingdom continental shelf and (b) onshore in the United Kingdom; and if he will make a statement.
§ Mr. Peter WalkerIt is too early to be able to quantify the effect of the drop in oil prices on employment in the industry. A substantial proportion of oil related employment is committed to the support of fields already in production. The oil price is still well above the average cost of production in the United Kingdom and on the United Kingdom continental shelf. So far as employment related to exploration and development is concerned, the stable political and fiscal regime here continues to attract the oil industry. Already this year I have approved three oil projects, four gas projects and a pipeline. The oil industry is naturally reviewing its plans, but it is its perception of prices in the 1990s and beyond, rather than current levels, which will determine longer-term investment decisions.