Oil and Gas Industry

2. What recent discussions he has had with Cabinet colleagues on support for the oil and gas industry in Scotland.

Oil and gas is, and will remain, a vital sector for the UK. The UK Government are committed to supporting the industry. That is why last week I attended the Grangemouth future industries board with other UK and Scottish Government Ministers on the transformation of the Grangemouth oil refinery. The introduction of the Offshore Petroleum Licensing Bill demonstrates our ongoing investment in the industry.

My hon. Friend knows that Scotland has the potential to be one of the world’s most advanced producers of hydrogen, and oil and gas companies are playing an important role in that transition. What is the Department doing to support oil and gas companies, which employ a huge number of people in Scotland and in my seat of Rother Valley, in building their hydrogen production, transmission and use capabilities, to ramp up the production of hydrogen so that we can get more of the low-carbon energy that we so need?

We anticipate that by 2030 the UK’s growing hydrogen sector could support more than 12,000 jobs and unlock £11 billion worth of private investment. Our hydrogen production delivery road map sets out proposals for annual hydrogen allocation rounds from 2025 to 2030, helping to provide certainty for the industry. In December, we announced the results of hydrogen allocation round 1, with Scotland fielding two successful projects.

The renewables sector provides the greatest job growth for Scotland’s energy sector, with the number of jobs in the renewables sector in Scotland growing by more than 50% in 2021. The future of Scotland’s job security, energy and economy lies with renewables. When will the UK Government finally match support for the Scottish Government’s £500 million just transition fund?

The SNP’s position on energy, particularly in relation to oil and gas, is frankly all over the place. We do not know where the First Minister of Scotland stands on this. He described developing Rosebank as “the wrong decision”, but now seems to think that oil reserves can fund capital investment in an independent Scotland. We fully recognise the importance of the energy sector to Scotland. That includes oil and gas and renewables. I will continue to work with all parts of the energy sector to develop that for the Scottish economy.