Oil and Gas (Hansard, 21 June 2004)

§ Mr. David Stewart
To ask the Secretary of State for Trade and Industry what plans she has to stimulate gas companies to create greater capacity to store gas within the UK. [179766]

§ Mr. Timms
The main stimulant for new gas storage projects will be the market opportunity, including the widening seasonal (summer-winter) spread of wholesale gas prices. The Department and Ofgem seek to provide an appropriate light -touch regulatory environment, and ensure that the market is aware of the opportunities through the regular reports of the DTI-Ofgem "Joint Energy Security of Supply Working Group". In addition my Department informs relevant local planning authorities, considering planning applications, of the energy policy background.

§ Mr. David Stewart
To ask the Secretary of State for Trade and Industry what plans she has to maximise the untapped oil and gas reserves in the UK continental shelf. [179765]

§ Mr. Timms
Government are committed to maximising economic recovery of UK oil and gas resources and there are substantial quantities of hydrocarbons yet to he produced. We are working on a number of initiatives aimed at maximising continued North Sea activity, investment and exploration. In particular wehave enhanced the licensing system to make available "promote" licences to encourage new companies to get involved in the North Sea, and new "frontier" licences to the West of Shetland to bring exploration to this area; continue to ensure current licensees release fallow acreage so that others can develop it; have introduced a new Exploration Expenditure Supplement to reduce barriers to entry for new companies that do not receive the full benefit of current 100 per cent. exploration and appraisal capital allowances; and with PILOT, the Government/industry forum, established "brownfield" workgroups which aim to ensure maximum recovery from existing fields, and have improved the access to offshore infrastructure.

§ Mr. Stephen O'Brien
To ask the Secretary of State for Trade and Industry what assessment she has made of the possible implications of a rise in the price of world oil on the competitiveness of UK manufacturing firms. [178666]

§ Jacqui Smith
As oil is an internationally traded commodity, the price rise has affected all world manufacturers. Moreover, as the rise has been accompanied by a fall in the US dollar against sterling, the rise in the sterling price of oil has been less pronounced.
The pick-up in business investment, allied with improving prospects for world trade, are in fact expected to underpin a strengthening of manufacturing output this year, building on recent signs of a turnaround in the sector.
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