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Heathrow Airport

Volume 485: debated on Wednesday 17 December 2008

To ask the Secretary of State for Transport if the Government will revise their modelling of the economic case for a third runway at Heathrow to take account of the most recent estimates from the International Energy Agency of oil prices in 2030. (243960)

The estimated net benefits of additional capacity at Heathrow will be updated in the impact assessment that will be published alongside the ‘Adding Capacity at Heathrow Airport’ decision, in January 2009.

The Department for Transport's forecasts use projections of oil prices from the Department for Business, Enterprise and Regulatory Reform (BERR). BERR's most recent projections (May 2008) are available at:

http://www.berr.gov.uk/files/file46071.pdf.

The IEA ‘World Energy Outlook 2008’ report projects a price of $120 per barrel in 2030 (expressed in 2007 prices). This falls within the BERR range of $45-$150 per barrel.