MP raises concerns about oil prices
26th January 2012
Harriet Baldwin calls on the Energy Secretary for reassurance that EU sanctions on Iranian oil will not affect oil prices in the UK.
Harriett Baldwin (West Worcestershire) (Con): What assessment he has made of the potential effects on UK oil and gas supplies of any disruption of shipping through the Strait of Hormuz. [91744]
The Secretary of State for Energy and Climate Change (Chris Huhne): We have made assessments of the impacts of short-term disruptions to shipping through the strait for both oil and gas. There is no reason to believe that such closure would create a physical shortage of oil or gas in the UK. Price impacts would depend on the exact nature of the disruption. The UK has access to a wide variety of oil and gas sources and routes, including production from the UK continental shelf, imports from Norway, storage, and oil and liquefied natural gas from global markets.
Harriett Baldwin: My constituents already suffer from high fuel and heating oil prices, so will the Secretary of State reassure them that EU sanctions on Iranian oil will not cause further price pressures in that market?
Chris Huhne: I would love to assure the hon. Lady that we are able to have greater control over the politics of the middle east than has been the case so far, but the reality is that that part of the world is extremely sensitive geopolitically. As she may know, HMS Argyll is supporting the USS Abraham Lincoln in the carrier group, and we are sending out clear signals that we want the issue dealt with in the most rapid way.
