The good and bad news about Oil falling from $130 a barrel in 2014 to $30 region

The good news is that we the consumers are getting a great deal on petrol prices for commuting, the cost of heating oil and the capacity of businesses to run with cheaper energy and transportation costs.
Filling up in a garage is barely a pound. Heating oil is a fraction of its cost in 2011-14. Business operating costs are lower.
The bad news is that this is severely impacting on financial viability of the North Sea businesses, upon which so much of the North East businesses depends. This is undoubtedly affecting businesses and jobs as the extraction of oil becomes uneconomic and the businesses that support the sector struggle through viability and lack of investment.

The causation of the price reduction is multiple but has three real triggers:
- shale gas in America has resulted in the production of much cheaper energy for businesses both in the USA and around the world; this has underpinned so much of the USA economic recovery. This cheap energy revolution has had impacts.
- a price war has resulted between the oil producers and the shale gas industry which sees the oil producers continue to flood the market notwithstanding an oil glut.
- the impact of foreign policy changes that sees countries like Iran now able to provide oil to overseas customers post the lifting of sanctions and the Geneva Agreement.
I do not see the price rising in a hurry albeit this price war cannot last forever. The argument in favour of energy security for a country is definitely made clear. Otherwise we are subject to overseas markets, dodgy dictators, problems of supply, and declining reserves in the North Sea. This is one of the reasons I support energy production in the UK. We need to have control of our energy supplies. Those who suggest otherwise have to tell us where we would get this energy from at a reasonable cost when this price war ends - as it surely will.

Climate Change Action Day in parliament - details of the debate with constituents and the issues raised

On Wednesday of last week I was delighted to meet with a number of my constituents who had travelled down to the House of Commons as part of the Climate Change lobby day.

It was an impressive turnout and I thank all those who came down from Northumberland to lobby me, as part of the countrywide "Fortheloveof" campaign. It is so important that, in a democracy like ours, people use their right to come to parliament and lobby their MP. I never forget that I work for you and I am always keen to hear from you. 

We discussed a variety of issues and it was good to be quizzed and tested on this crucial topic. One thing was clear: we all agreed that climate change is a fundamental issue and one that poses a great risk to our planet if not combatted. 

All of us accept that climate change is an issue that already affects us today, but one that will have grave consequences for future generations, unless concerted action is taken. We have a collective responsibility to do all we can now to tackle climate change for the sake of our children and grandchildren.

During the 50 minute session in Westminster Hall I took a large number of questions and addressed the Friends of the Earth 10 questions sent down by some of my constituents. On some issues we were in complete agreement, on some issue we differed. But all agreed that the December Paris Climate Change Summit is key to achieving long term gains. The key issue is getting a deal that all countries will sign up. I am confident that Europe will sign; the problem is the emerging economies of China and India and others who are reluctant to restrict their growth, and happy to take the jobs of employers like Alcan. 
  

This government understands the significance of the threat posed; I believe we are making real progress. We have a commitment to reduce our carbon emissions by 80% by 2050 and we are on track to do this. I agree, as was put to me on Wednesday that more needs to be done, but we are making progress. 

We are leading the way with the world’s first Green Investment Bank, an initiative which I strongly champion and one that can bring real benefits to both our economy and environment. 

It was put to me that this government needs to act conscientiously in encouraging a comprehensive deal at the Paris Summit this December and I agree. We need to continue to be leaders on this issue and do all we can to encourage countries to use cleaner power sources. 

It was a useful and informative discussion and I want to assure all those who came to meet with me that I take their questions, ideas and comments fully on board.


I received a variety of briefings from Friends of the Earth, Christian Aid, and individual constituents.
I will try and address these key issues, in brief, below:
1. UK commitment to keeping global warming below 1.5 degrees. I am fully supportive of the UK government's approach past and present leading up to the Paris Summit. The last Government grew the economy and cut our carbon emissions and I will campaign to ensure this Government will do the same. We saw a massive increase in investment in renewable energy, including the largest offshore wind market anywhere in the world between 2010-2015. The issue will be the extent of the negotiation and the potential agreed outcomes. I suspect the problem area is not the EU countries who have been leading the way.

2. I am urged to:
- back flood defences both here and abroad - I do wholeheartedly.
- Likewise I support the use of solar panels and have helped a solar innovator from Ponteland get access to wider and better markets, taking them to DECC and supporting their business in whatever way possible.
- On coal there is cross party agreement on the reduction of reliance on coal, and my role in the campaigns on the local Halton Lea Gate and Whittonstall open cast applications is widely known and fully set out on the blog.

3.  FOE want me to oppose roadbuilding like the dualling of the A69 and A1
- I disagree, and will continue to campaign for both the A1 and A69 to be dualled.
- Likewise I disagree on the issue of shale gas extraction. The House of Commons in the spring of 2015 passed a highly detailed position between after extensive debate amongst MP of all the parties, as to the need for extraction under highly regulated rules and with extraction to be carried out in an environmentally safe way. This was after extensive debate for over 6 months in the Commons and the Lords as part of the Infrastructure Bill.
What is clear is that we can no  longer rely upon Russian or Ukrainian gas, and that North Sea Oil and Gas reserves are dwindling. We need a mixed energy supply, but preferably home grown, and I support what President Obama has done to promote shale gas extraction in the USA. Its affect on the cost of living, on  energy security, business costs and the repatriation of jobs has been remarkable in the USA.

4. I am a huge supporter of the various schemes for warmer homes and actively support the oil buying clubs and am helping set up the Tynedale Community Bank to help such schemes locally. On biomass, DRHI and the ECO and Green Deal I am working flat out with local suppliers, and DECC, to ensure their success and the expansive of more fuel efficient homes with a lower carbon footprint.

5. At the meeting we had an extensive discussion as to nuclear power, which I support. We discussed at length the change in views on nuclear, and whether this is deemed a clean or acceptable form of energy supply going forward.

6. We discussed the new tidal barrage in Swansea that the Secretary of State has just authorised and committed massive subsidy to - whilst at the same time phasing out on shore wind subsidies from May 2016:  http://www.telegraph.co.uk/news/earth/energy/11663518/Swansea-Bay-tidal-energy-lagoon-gets-green-light-from-Amber-Rudd.html

I have not answered every question raised but will attempt to do so going forward but hope that this sets out the bare bones of the discussion, the debate and the areas of agreement and disagreement going forward.

Energy Debate in the Commons this afternoon - trying to get in to speak

Around 4.15 there will be an energy debate. There is much to discuss. Clearly the biggest concern for residents in Northumberland is the increase in the oil price due to Middle Eastern instability - this will mean more costly fuel, gas and heating oil for locals.
Fuiller details of the worsening situation in Iraq is here: http://www.bbc.co.uk/news/world-middle-east-27897648

The Weekend Read: Iran is the good news story of 2014

Iran as a working friend, and not as an active enemy, is the key to Middle Eastern Peace.
Last week, the very fact that the Iranian President Hassan Rouhani was in Davos, at the world economic forum, and saying Iran was open for business, was the most important world story for a very long time. It's the first time in ten years that an Iranian president has attended the World Economic Forum and he came with a message: Iran is ready to engage with the rest of the world, and he wants his country to become one of the ten global economies. It is also very good news for greater peace and a resolution of conflict in the Middle East.

Mr Rouhani said he intended to remove “all political and economic impediments to growth” in Iran and that one of his priorities was “constructive engagement” with the world, including through the use of its oil and gas reserves. “Only through co-operation and engagement can we provide a better life for our people and make peace sustainable,” he said.

For its part, Iran intends to “reopen trade, industrial and economic relations with all of our neighbours”, he said, identifying Turkey, Iraq, Russia, Pakistan, Afghanistan, the states of the Gulf and Central Asia.

Clearly the presence of Iran back in to the fold of oil producing countries that we can do business with would have a seriously good positive impact on the price of oil - and more importantly the cost of energy and petrol - that we in Northumberland, and the wider west, consume.
It is clear that business leaders from all over the world are beginning to go to Tehran in the coming months. Again this is a potential new market for British Exporters who are keen to sell their wares.
This potential for new business for Irtan is linked to its decision to back off its possible nuclear programme, and its decision to engage with the west and not seek out confrontation. It is the most important sea change in world affairs for a very long time, and very good news. It is also clear that Rouhani will have a huge impact on the Syrian conflict, as his more recent pronouncements have shown.
For a fuller report on his speech and approach at Davos, the Guardian have the following view:  http://www.theguardian.com/world/2014/jan/23/davos-iran-ready-engage-world-rouhani

Good news as Oil Price falls - petrol costs so dependent on easing middle east tensions

My constituents want cheaper petrol and diesel, and the biggest issue in price of these items is the base price of the commodity. The price per barrel of oil is key and the Middle East problems of Libya, Syria, Egypt and Iran - amongst others - have massively affected the oil price.

The immediate impact of the improvement in relations with Iran was a reduction in Brent crude oil as it fell by around $3 per barrel; the historic nuclear deal drawn up between Iran and the major world powers has eased oil supply worries. The deal curbs the Middle Eastern regime’s nuclear enrichment activities in return for a partial lifting of trade sanctions for a six-month period. It prevents Iran from enriching uranium to weapons-grade level, eases sanctions and affects us as consumers here in Northumberland and around the world.

The accord should unlock 800,000 barrels a day of global supply by next year in a market of 89m, rising over time as foreign firms return and the country’s ruined oil industry comes back to life.
The analysts Citigroup said the Geneva deal should cut global oil prices by $13 over time, enough to depress Brent crude below $100 and US crude below $85.
The reason for the agreement is becuase of nuclear weapon concerns. But the consequential benefit will be felt in the North East