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Oil Industry (Northern Region)

Volume 884: debated on Monday 13 January 1975

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asked the Secretary of State for Energy how many firms in the Northern Region he estimates are now employed on work connected with North Sea oil.

Approximately 400 companies of all sizes have done, are doing or are actively tendering for North Sea oil work. Twelve of these are major companies currently engaged on large value North Sea contracts. Precise in- formation is difficult to obtain because subcontract work is not necessarily identified as bring destined for North Sea markets.

asked the Secretary of State for Energy what he estimates is the value of work so far undertaken in the Northern Region on North Sea oil exploration.

The estimated value of work completed or in hand in the Northern Region in connection with North Sea oil and gas exploration and development is £200 million.

asked the Secretary of State for Energy what measures he has taken to encourage the development of North Sea oil exploration work in the Northern Region.

An Offshore Supplies Unit has been established in the regional office of the Department of Industry and an oil management consultant appointed part-time from industry. The unit is working to increase the total contribution to offshore work by Northern industry. Very close liaison is maintained between the regional office and my Department's Offshore Supplies Office.

asked the Secretary of State for Energy what he estimates will be the total market for offshore supplies and services on the United Kingdom Continental Shelf by 1980; and what proportion of this market he estimates will be supplied by contractors in the Northern Region.

It is estimated that expenditure in United Kingdom Continental Shelf activities may reach a total of £4,000 million by 1980. Northern industry at present has approximately 15 to 20 per cent. of the United Kingdom share of the North Sea hardware market. With more of the major companies now actively pursuing contracts, it is reasonable to assume that a high level of North Sea work will continue to find its way to the Northern Region.

asked the Secretary of State for Energy what is the total number of jobs which have been directly and indirectly created in the Northern Region as a result of work on North Sea oil.

The number of jobs directly attributable to North Sea offshore work in the Northern Region is approximately 5,000. Because of the very wide range of subcontract activities involved, some of which are not readily identifiable as being for the United Kingdom offshore market, it is not possible to estimate indirect employment.

asked the Secretary of State for Energy what increase he expects in the number of jobs in the Northern Region over the next two years as a result of work on North Sea oil.

The estimate of additional jobs likely to arise over the next two years as a result of work on North Sea oil is 3,000.

asked the Secretary of State for Energy how many North Sea oil rig accommodation modules have been built on Teesside since the first United Kingdom module was built there in 1972; how many more are on order; and what is the total value of contracts for such modules in the whole of the Northern Region.

Since the first accommodation modules were built on Teesside in 1972, two more have been completed and a further five are currently on order. The total value of contracts placed for accommodation modules in the whole of the Northern Region is £5·5 million.

asked the Secretary of State for Energy what centres in the Northern Region are carrying out research into new services and skills for use in North Sea oil exploration.

The International Research and Development Company Ltd., Newcastle-upon-Tyne, is carrying out research into hardware and services for use in North Sea oil work. The University of Newcastle-upon-Tyne, Department of Surgery, specialises in diving medicine, which is relevant to North Sea underwater activities. The regional office of the Department of Industry has recently brought together industrialists, academics and professional associations to form a regional off- shore technology committee. A new sector committee of the Engineering Industries Training Board has been established covering employers wholly or mainly engaged in the mechanical engineering and electrical construction (MEEC) industries, and this in turn has resulted in the formation of a local group training association on Teesside to operate a group training centre in that area, financed by the Training Services Agency and Engineering Industries Training Board.

asked the Secretary of State for Energy what additional centres are planned in the Northern Region for the building and servicing of oil rigs.

I understand that Seaham Harbour is at present being considered for such activities.

asked the Secretary of State for Energy when and where the anticipates the first North Sea oil will be brought ashore in the Northern Region.

The first North Sea oil to be brought ashore in the Northern Region is expected to be from the Auk field and to be delivered by tanker to the Shell refinery at Teesport during 1975.

asked the Secretary of State for Energy what is the value of contracts so far agreed for the construction of oil rigs in the Northern Region.

The value of contracts so far agreed for work by Northern firms on production platforms is £90 million for steel jackets and £33 million for deck structures and modules.

asked the Secretary of State for Energy what proportion of the total production of North Sea oil will be brought ashore in the Northern Region.

On the basis of currently known company plans for the disposal of oil, about one-third of total oil production from the North Sea, including the Norwegian sector, will be brought ashore in the Northern Region of England in 1980.

asked the Secretary of State for Energy if he will arrange for a proportion of the revenues from North Sea oil to be used to overcome unemployment in the Northern Region.

The Government already have an extensive range of measures to help to overcome the unemployment problems of the development areas. We have already made it clear that, in ensuring that the community as a whole benefits to the maximum extent from the exploitation of our North Sea oil resources, particular attention will continue to be paid to the regions most in need of development.