MPs launch inquiry after call for ban on North Sea oil drilling

Published on Wednesday 21 July 2010 18:52

MPS have launched an investigation into a potential ban on North Sea exploration following calls for a moratorium on new drilling by the European energy commissioner.

• The Gulf of Mexico oil spill has prompted fears over deep North Sea exploration. Picture: Getty Images

The cross-party energy and climate change committee will examine whether the UK government was right to rule out a moratorium on deepwater drilling in the waters west of Shetland.

Tim Yeo, chair of the House of Commons committee, said that "serious questions needed to be asked" about the safety of deep water drilling off the coasts of Scotland following the oil spill disaster in the Gulf of Mexico.

Industry body Oil & Gas UK said it "welcomed" the committee's inquiry. Malcolm Webb, the association's chief executive, said it would present "an excellent opportunity for us to respond to and correct the ill-informed comment and opinion emanating from numerous sources about our industry".

He added: "The inquiry will enable us to demonstrate not only our industry's highly commendable track record in the UK, but also the vital role it has to play in assuring the energy security, economic growth and environmental aspirations of this nation."

Last month, in response to the blast on BP's Deepwater Horizon oil rig, energy secretary Chris Huhne said an urgent review had found the measures governing the oil and gas industry in UK waters were "fit for purpose".

But he announced an increase in the inspections of North Sea drilling rigs.

Mike Weir, the SNP MP for Angus and a former member of the committee, said a drilling accident off the coast of Scotland would be a "disaster" but said there was little to compare the North Sea and the Gulf of Mexico in terms of regulation. He said the committee should look to "ensure this doesn't happen" in the North Sea but to refrain from "imposing regulation from above".

"The North Sea is vital to the North-east of Scotland, it is a huge employer and as well is important to the Exchequer," said Weir.

Currently 30 companies have an interest in the West of Shetland area, including oil majors BP, Chevron and Total.

Industry reports describe the West of Shetland as an "area of high exploration potential" but which is characterised by "extreme environmental conditions such as wind, wave, temperature and water depth".

Oil and Gas UK has said a moratorium would "jeopardise" 6 billion of investment currently earmarked for the North Sea. This includes the Catcher prospect, one of the largest new North Sea oil field developments for almost a decade.

Both the US and Norway have banned new drilling until the leak in the Gulf is under control and factors leading to the accident have been identified. Although Europe cannot force the UK to comply with a moratorium, EC energy commissioner Gunther Oettinger last week called on governments to ban fresh oil exploration in the EU.