Michael Shanks MP: speeches 2025

Speeches

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I reject the hon. Member’s assertion that this Government are somehow following a course without looking at the evidence. Clearly, oil and gas is a crucial part of our energy mix and will be for decades to come—we have been clear on that—but so too is building up what comes next. That means investing in the supply chains that were so often not part of the building of infrastructure that we have in our waters. We towed things in and switched them on, but had none of the jobs that went with them. We are determined to change that, but that comes with having a credible industrial strategy and a long-term plan for the future of the North sea, which we did not have under 14 years of the previous Government.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  The House will understand that I will not be drawn on applications that are currently awaiting decision, so I will not comment on that specific application. On my hon. Friend’s broader point, as has already been said, the net zero economy is growing three times faster than the economy at large, and it is our economic future. I recently attended the G20 in South Africa, where Ministers from across the world were talking about the opportunities offered by the clean power transition in their own countries. It is the economic opportunity of the 21st century, as well as how we deliver on climate leadership: contrary to what Opposition Members might now think, that still matters. It is only right that we deliver a genuinely just transition for the workers who have powered our country for the past 60 years. We have seen where transitions have not been done well. The previous Government failed to put in place any kind of plan, but we will deliver a plan that delivers a just transition and our economic future.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  My hon. Friend is absolutely right that huge opportunities are coming. I have said that we should be proud of the history of oil and gas, and we should also be really proud of what the industry is doing to transition into the future. We need to do much more to ensure that jobs are delivered now, but certainty and confidence that the plan is not going to change overnight is critical for how we get private sector investment into the UK to deliver on those jobs. That is also why it is so important that we look at skills in the round. I have to say that, despite the outbursts today, the SNP in Holyrood and the UK Government are working closely on ensuring that the skills opportunities are delivered. Would I like that to go further? Of course I would, and I hope we will have a change of Government and can make that happen. This only works if we have a serious approach to recognising the challenges, building the jobs of the future and ensuring that people can take advantage of the opportunities right across Scotland.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I am not sure that there was a hugely coherent argument there. The hon. Gentleman seems to say that the future might be in clean energy jobs, but he says, “They might not be delivered fast enough, so we should not bother doing it.” We think there is an important long-term future in delivering clean energy, including in his constituency, where many supply chain jobs will be delivered, and he is against that economic investment. He should explain to his constituents and to the wider country why Reform wants to make this country more energy-dependent, not less energy-dependent, and why it is against the economic opportunities that our proposals bring. Even if we disagree on the climate crisis—which I find staggering, given all the evidence; I accept that he might be burying his head in the sand—we should at least agree that there is a huge economic opportunity, and an opportunity to maintain our energy security.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  First, can I just say what a contrast it is when someone rightly responds to this concerning issue in a serious way and does not talk down the industry? This is where the House should stand taller and recognise that that company is doing good work and that there are 2,000 workers out in the North sea right now carrying out their duties. We want to ensure that there is a viable future for the company, and we are doing everything that we can in that space. All the signs are that it is a growing, successful business, and we should recognise that and talk it up, not talk it down, as the Conservative party seems hellbent on doing. On the hon. Lady’s wider point, she is right to say that the future of clean energy involves tens of thousands of jobs across Scotland and hundreds of thousands across the UK, but that we need to ramp those jobs up as quickly as possible and ensure that people can achieve those jobs. We are doing what we can around looking at the skills framework, but we also ensuring that, through the investments we are making through Great British Energy, those jobs come forward much faster and that people are supported to move from jobs in oil and gas into jobs that have a real correlation in skills. We are picking this work up after the failure of the previous Government to have any plan. We are moving as fast as we can, and we will see more on that North sea plan in the coming weeks.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  My hon. Friend is always a great champion for the industry. Although we often talk, quite rightly, about Aberdeen and north-east Scotland, she is right to champion her own community, where there are a significant number of oil and gas workers. I always welcome her straightforward challenge to me on many points. I will not get into the detail of the response to the consultation, which we will publish in due course, but we have been clear that we want a credible, long-term plan for the future of the North sea. That is why we consulted on a range of factors, not just the future licensing position, and we will come to a pragmatic position on what the future of the North sea looks like.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I thank my hon. Friend for his question, and particularly for mentioning retraining. We see huge opportunities for people who are in the middle of careers to transfer into the energy system. Just in the past few weeks, we have been looking at a scheme to support veterans who are leaving the armed forces in getting jobs building infrastructure. There are huge opportunities in that sector if we can capitalise on the clean energy transition. We also need to invest in the future of the next generation of workers. In England, we are looking at technical training colleges to make that happen. Funding goes to the Scottish Government to do that in Scotland and, of course, to the Welsh Government as well. The future of our energy system is clean energy; we want to make sure that we have the jobs and training opportunities that go with it, so that the people of our country get an economic advantage, as well as the country getting the energy security.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  The hon. Gentleman is absolutely right, although I think I heard a “no” from the Opposition Front Bench in response to his question. The only way in which we can deliver long-term energy security is to get off the rollercoaster of fossil fuels. The future is in clean energy: we see that across Europe, where nuclear and renewables are driving down the cost of electricity, but also insulating countries from the price spikes that we have seen as a result of, for instance, Russia’s invasion of Ukraine. We are too exposed to gas at the moment, which is why our electricity prices are high, even though for much of the day our power is being generated by clean energy, which is considerably cheaper. Clean energy is the economic opportunity of the 21st century. It is how we deliver our energy security, how we tackle the climate crisis, and how we bring down bills for people now and in the long term.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  We will respond to the consultation on the future of licensing in due course. This Government were elected on the manifesto commitment to not issue new licences to explore new fields, but it remains our position that we will support existing licences and fields for their lifetime. We must manage the future of the basin, which has been in decline for 20-plus years—we hit peak oil in 1999 and peak oil in 2000, so we have been in transition for a long time—and that means investing in the industries that come next, alongside oil and gas.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  As I have said in a number of answers, the UK arm of Petrofac is a successful and growing business. Its holding company went into administration today due to a number of factors, including the loss of an international contract. It is nothing to do with our policy in the North sea.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I agree with the hon. Lady on the wider point, which is that—as I outlined in my opening answer—Petrofac has not had its troubles to seek. She has outlined a number of those troubles, but I reiterate that the UK arm of that business is successful and growing. We want to make sure that that continues—that there is a buyer, or another solution, so that it can continue long into the future. Others will seek to politicise this news for the sake of their own political narratives, but it is incumbent on all of us to send as positive a message as we can to the workers, suppliers and customers of Petrofac—the message that the UK arm continues to operate as normal, and that we want that to continue.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I am in Aberdeen regularly and do meet constituents of the right hon. Member who work in renewables, carbon capture and hydrogen as well as in oil and gas. It is his constituents who will benefit from the investments that Great British Energy will make, for example, which he failed to vote for, and who tell me that after a long period of having no credible plan— [ Interruption. ] He can shout me down all he wants; he asked a question—

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  Perhaps I should switch the question back: for how many years have we already been importing oil and gas? That gets us to the fundamental point. The Conservatives want to pretend that in July last year, we switched to being a net importer of oil and gas. That is not what happened. The right hon. Gentleman’s party oversaw that transition over many, many years. I recognise that, to some degree, given the geology of the basin, there would not have been different decisions taken if we had been in government, but what we could have done differently was ensure that the transition was happening, and delivered the economic opportunities that come along with what comes next, and that is what we will do.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  The hon. Lady is of course right that any announcements like this are worrying not only for those directly involved but for the wider community. I entirely recognise that point. She is right that it is critical to invest in the jobs of the future. We have worked with the Scottish Government—because we do work with them—to deliver joint funding for transition support so that workers can get the direct skills support they need to move from an oil and gas job into a renewables job. That is really important, but we also need to see much more upskilling of the next generation, who can take advantage of the jobs we will create in the clean energies of the future. On the question of taxation, I am afraid that is a matter for the Chancellor.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I do not know whether the footnote to the hon. Gentleman’s question says this, but even if we were to issue new licences, what we extracted from the North sea would be traded on the international market and we would pay the price that is traded on the international market. I would like to understand the hon. Gentleman’s logic in respect of how that would help us to bring down bills; it is not the case. Let me be clear about this: the long-term future of our energy system is a mix of nuclear and renewables. Removing ourselves from the volatility of fossil fuels is the only way forward, but it is also an economic opportunity for his constituents and those of Members on both sides of the House. We will build this infrastructure here with a proper industrial strategy to create the jobs of the future.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I thank the hon. Gentleman for the engagement we have had on this issue. Obviously, the failure of the company that was previously running the Prax Lindsey oil refinery has had a really significant impact. We have been working to make sure that the process that the official receiver is going through is concluded as soon as possible. It is for the receiver to decide who the potential buyers are; it is looking at a shortlist of credible candidates, but given the nature of the insolvency, it is not for the Government to decide what is built next on that site. Turning to the hon. Gentleman’s second point, I genuinely do not think that the licensing question will decide the future of jobs for that site. We want to build up an industry for the future on that site, with long-term, sustainable jobs, and all the evidence we have seen about managing the future of the North sea basin suggests that that while oil and gas will be important for many years to come, that is not the long-term future for the North sea.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  On Petrofac, the hon. Gentleman should be careful with his tone. To come here and try to undermine efforts to find a buyer for the UK arm and to talk down a business, which, as I just outlined, is a successful and growing business in the North sea, is deeply irresponsible. There have been long-standing issues at the company; he of all people should be well aware of that, given his previous role as a Minister in the Department for Energy Security and Net Zero. All of us across the House have a responsibility to support the company at the moment, not to undermine it, and to send a positive message to those workers, the suppliers and the customers that the UK arm is continuing to operate as normal. All the signs are that there is a viable long-term future for the company, but that will not happen if we have comments like those made by the hon. Gentleman undermining that business. On the wider question of the North sea, the hon. Gentleman should know as well as anyone that we lost over a third of the jobs in the North sea during the Conservative party’s time in government. He wants to pretend that the transition arrived in July 2024, but he was in government when those jobs were going, and the Conservatives failed time and again to come up with any credible plan for managing the future of the North sea. We will not do that. We will come up with a plan. That is why we are building the industries of the future on hydrogen, on carbon capture, on offshore wind and on the supply chains—the very investments that he and Conservative Members turn their backs against time and again. They are turning their backs on the future of the energy story in the North sea as they are more interested in exploiting problems than solving them. Time and again, they have learned no lessons from their time in government, when they left these workers without a credible plan. We will not do the same again.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I have enormous respect for the hon. Lady, but I have to say that this is not the day to be talking down this particular company. She can make the wider points about this Government’s policy—I totally recognise that—but this is a hugely important moment in which not to undermine a successful and growing company. We need to ensure that the suppliers, related companies and customers of Petrofac continue to support that business, because as of today it is operating as normal. It is incumbent on us all to ensure that that continues to be the case. We are working closely with the company to ensure that that outcome is delivered—the hon. Lady is right to mention the wider impact—but those 2,000 jobs and the supply chain jobs that rely on them have continued as normal today, and any suggestion to the contrary is just not correct.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  My hon. Friend makes an important point about building up the industries of the future. I have said on a number of occasions that we should rightly be proud of six decades of oil and gas in the north-east of Scotland, and we should be proud of the work that that workforce has achieved, but we should also recognise that we have been in transition for a long time. Building up the jobs of the future in carbon capture, hydrogen, offshore wind and supply chains is how we ensure a long-term, viable, sustainable future in the north-east—alongside oil and gas for many decades to come. The particular work that the Scottish Government need to do in this space is about improving the skills offer so that more of Scotland’s young people can take up the 40,000 jobs we will create over the coming years. That is a huge opportunity for Scotland’s young people, but only if we improve Scotland’s education system.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  The North sea will be at the heart of Britain’s energy future. For decades its workers, business and communities have helped to power our country and our world, and they will do so for decades to come. The oil and gas industry has lost around a third of its entire workforce in the last decade as oil and gas production has declined. A plan is now needed. That is why in March we consulted on a framework for building a world-leading offshore clean energy industry in the North sea, alongside managing existing oil and gas fields for their lifespan. We will respond to that consultation in the coming weeks. Alongside that, we published our clean energy jobs plan, which sets out that over 400,000 more good jobs are to be created across the UK, including 40,000 in Scotland, by the end of the decade. That is facilitated thanks to record investments in clean energy as well as over £50 billion of private investment since July 2024 thanks to the certainty our plans have created. Turning to today’s news, colleagues will be aware that Petrofac Ltd has for some time been working on a restructure relating to its global portfolio. The restructuring plan failed, following the unexpected termination of a contract by TenneT—a Dutch transmission company. At 7 am today, holding company Petrofac Ltd announced that it will be entering administration. While that is obviously disappointing for the company, it is the product of long-standing issues with its global business. Contrary to misleading reports today, the UK arm of Petrofac has not entered administration and is continuing to operate as normal—as an in-demand business with a highly skilled workforce and many successful contracts. Indeed, only last month Petrofac’s UK arm extended two significant contracts, demonstrating that the business has a viable future. Today’s announcement covers only the top-level holding company Petrofac Ltd, which has no employees. The Petrofac group has faced long-standing challenges, including a high-profile £77 million financial penalty imposed in 2021 following a Serious Fraud Office investigation into bribery. We understand that there is reason to be optimistic about a commercial resolution that includes the UK arm. The Government have been, and will remain, in close contact with the company. I repeat this to the House: the UK business has not entered administration. It is successful and growing, and it will continue to operate as normal.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I will just reflect on something that my hon. Friend said. This is a global company, and it has not had its troubles to seek for some time. It was subject to an investigation back in 2017, and it has gone through a number of restructuring routes since then. Ultimately, that process came to an end when it lost a significant contract from TenneT, one of the Dutch transmission operators. This is a company that has faced global headwinds for some time, but I repeat to the House that the UK business has a viable long-term future. It is already growing, it is successful, and we have a responsibility across this House to talk up British businesses and the workers in those jobs, not to talk them down.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  First, I welcome the right hon. Gentleman’s recognition—which we seldom hear from his party’s Front Benchers these days—that this is a transition, and that we want the economic opportunities of oil and gas and those of renewables. It is a delight to hear him say that; his Front Benchers should say so more often and talk up the phenomenal renewables industry, which the Conservatives should take a bit of credit for. Over the past 14 years, they built up so much of that industry across the country, but they have turned away from that now. Turning to the licensing point, I cannot remember at what stage the right hon. Gentleman was in the Government, but of course, the previous Government said that they would not issue new licences. Later, they briefly did; then they recognised that that was the wrong policy—I think it was the Liz Truss years in which they changed around. A tiny fraction of the licences that have been issued have ever resulted in extraction from the North sea. We will manage existing licences for their lifespan, and will take a pragmatic view on the future of the North sea, which we will announce in the coming weeks, but the long-term future of the North sea does not lie in oil and gas; it lies in renewables, carbon capture and hydrogen.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  I take the hon. Lady’s first point with a pinch of salt, after her second point that this comes as a hammer blow to the community. There is no hammer blow; those jobs have been protected—today 2,000 workers are waking up and doing the same job they were doing last week. I am often in Aberdeen but I do not pretend that I hear as much from people there as the hon. Lady does from her constituents. Although I have made an effort to be there as often as possible to hear the concerns, I recognise that we need to move further and faster than the previous Government did for 14 years, and the Scottish Government did for 18 years, to put a credible plan in place for the future of those jobs. That means not only investing in future jobs, but ensuring the processes are in place so that people can take advantage of those jobs much more easily. Passporting, which was stuck in the mud for years, is now being delivered because we helped to unlock it. There is a lot more to do, and we will say that in the coming weeks when we publish our future of the North sea plan, but we are the ones driving forward investment that creates the jobs of the future. I am afraid that other parties—I did not count the hon. Lady’s party as one of those until today—are harking back to the past rather than recognising that the jobs of the future need to go hand in hand with good, well-paid oil and gas jobs in the short term.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  No, I do not. The clean power that we are trying to build will enable us to ensure that we remove gas as the price setter on our system. At present, gas sets the price 80% of the time, although it is often clean power that is powering the country. That is a problem that we have to end, so that all our constituents—but also businesses—benefit from cheaper power. The cheapest form of electricity that we can build at the moment is solar. I know that the hon. Lady objects to a number of those schemes in her own constituency, as she is perfectly entitled to do, but I would say to Conservative Members that if we want to build a power system that brings down bills, we have to support the infrastructure that goes with it.

• 27 Oct 2025 · North Sea Oil and Gas Industry · Hansard source

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  We recognise that the energy profits levy will come to an end and have consulted on what the future of that looks like with industry. It is a matter for the Chancellor to outline tax policy, as is standard practice in this House; it is not for me to comment on that. But there is a broader question about how we ensure that we drive forward investment. Talking down the investment in carbon capture, hydrogen, offshore wind and the supply chains is not the way to drive forward the jobs of the future, alongside the critical, important oil and gas jobs that will be with us for decades to come.