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Brown urges increased oil boost Brown urges increased oil boost
(20 minutes later)
Gordon Brown has urged oil industry leaders to come up with ideas for improving supplies as fuel prices soar.Gordon Brown has urged oil industry leaders to come up with ideas for improving supplies as fuel prices soar.
The government has announced new moves to increase oil production in the North Sea. Number 10 says it wants to make the most of the UK's reserves.The government has announced new moves to increase oil production in the North Sea. Number 10 says it wants to make the most of the UK's reserves.
It comes after lorry drivers staged protests against rising costs and Labour MPs urged ministers to rethink increases in both petrol and road tax.It comes after lorry drivers staged protests against rising costs and Labour MPs urged ministers to rethink increases in both petrol and road tax.
The PM and Chancellor Alistair Darling are in Scotland meeting oil bosses.The PM and Chancellor Alistair Darling are in Scotland meeting oil bosses.
As the talks began, Business Secretary John Hutton announced the go-ahead for oil production to start in two new fields, West Don and Don South West - although oil experts said this would have no impact on prices.As the talks began, Business Secretary John Hutton announced the go-ahead for oil production to start in two new fields, West Don and Don South West - although oil experts said this would have no impact on prices.
New licensing agreements 'Can't turn the taps on'
The areas are expected to start operating in the first half of next year with an estimated production rate of up to 50,000 barrels of oil a day at their peak and a total output of 50 million barrels.The areas are expected to start operating in the first half of next year with an estimated production rate of up to 50,000 barrels of oil a day at their peak and a total output of 50 million barrels.
Mr Hutton also unveiled plans for new oil and gas fields to be carved out of unprofitable parts of around 30 existing fields, which could see additional daily production of 20,000 barrels of oil.Mr Hutton also unveiled plans for new oil and gas fields to be carved out of unprofitable parts of around 30 existing fields, which could see additional daily production of 20,000 barrels of oil.
This is not just a national problem - it is a global problem of supply and demand, not just in the short term, but the medium term and the long term Gordon Brown Analysis: Driving towards a U-turn?Speculation over road tax rethink Analysis: Why oil prices are highThis is not just a national problem - it is a global problem of supply and demand, not just in the short term, but the medium term and the long term Gordon Brown Analysis: Driving towards a U-turn?Speculation over road tax rethink Analysis: Why oil prices are high
A record 193 applications have been received to explore for oil and gas in the latest licensing round.A record 193 applications have been received to explore for oil and gas in the latest licensing round.
After the meeting in Banchory, near Aberdeen, Mr Brown said: "I met the oil producers today because we are facing the third great oil shock of recent decades. After the meeting in Banchory, near Aberdeen, Mr Brown said: "We want to do more to increase production in the North Sea and we have made proposals today that I believe will incentivise, not only existing fields, but new fields, to come on stream."
"We want to do more to increase production in the North Sea and we have made proposals to do that." However, Alex Kemp, professor of petroleum economics at Aberdeen University, said there was no short-term solution for increasing production in the North Sea.
"The idea of increasing production is something that you can't just do, immediately anyway because the industry operations on a 24-hour per day basis, 365 days per year. So you can't - as the media often colloquially say - turn on the taps," he said.
The government is under mounting pressure to ditch controversial plans to increase road tax on gas guzzling cars.The government is under mounting pressure to ditch controversial plans to increase road tax on gas guzzling cars.
Mr Hutton and Justice Secretary Jack Straw insisted the prime minister was "listening" to concerns over the planned increase in vehicle excise duty - giving rise to speculation that the government could stage a U-turn.Mr Hutton and Justice Secretary Jack Straw insisted the prime minister was "listening" to concerns over the planned increase in vehicle excise duty - giving rise to speculation that the government could stage a U-turn.
'Green agenda''Green agenda'
However, the prime minister's official spokesman said the two Cabinet ministers were saying "nothing more than the government understands the concerns of the motorists and hauliers".However, the prime minister's official spokesman said the two Cabinet ministers were saying "nothing more than the government understands the concerns of the motorists and hauliers".
"The chancellor and the prime minister would happily agree with them," he said."The chancellor and the prime minister would happily agree with them," he said.
However, he added that Mr Brown was not going to retreat from "his green agenda".However, he added that Mr Brown was not going to retreat from "his green agenda".
Writing in the Guardian, Mr Brown seemed keen to keep the focus on the rising cost of oil, rather than on the hike in road tax.
He says an increase in the supply of oil would lower the price of fuel and ease pressure on the government over the planned tax increases.
See how UK petrol and diesel prices have risen See how UK petrol and diesel prices have risen
He called on nations to unite to stabilise the price of oil, which has increased from US $10 a barrel a decade ago to $135 today. The prime minister has called on nations to unite to stabilise the price of oil, which has increased from US $10 a barrel a decade ago to $135 today.
He says the UK will argue that a global strategy to tackle the impact of higher oil prices be put at the top of the agenda of the next meeting of the G8 group of industrialised countries.He says the UK will argue that a global strategy to tackle the impact of higher oil prices be put at the top of the agenda of the next meeting of the G8 group of industrialised countries.
'Don't rush''Don't rush'
Lib Dem treasury spokesman Vince Cable, a former economist at oil giant Shell, said if he were chancellor he would wait before making a decision on the 2p fuel duty rise - but added he could not see an easy way to pay for scrapping it.Lib Dem treasury spokesman Vince Cable, a former economist at oil giant Shell, said if he were chancellor he would wait before making a decision on the 2p fuel duty rise - but added he could not see an easy way to pay for scrapping it.
HAVE YOUR SAY We should get behind the truckers and make our own protests" Tony, LiverpoolSend us your commentsHAVE YOUR SAY We should get behind the truckers and make our own protests" Tony, LiverpoolSend us your comments
"We have to wait until the autumn and we have to see what conditions are like," he told BBC Radio 4's Today programme."We have to wait until the autumn and we have to see what conditions are like," he told BBC Radio 4's Today programme.
"There's no point rushing ahead with a decision on that. It may be that the world oil price will fall very substantially in the intervening months and the problem will seem to have dissipated somewhat."There's no point rushing ahead with a decision on that. It may be that the world oil price will fall very substantially in the intervening months and the problem will seem to have dissipated somewhat.
"But I would have the problem, if I was chancellor, of getting the money somewhere else and it isn't altogether obvious where the money would come from.""But I would have the problem, if I was chancellor, of getting the money somewhere else and it isn't altogether obvious where the money would come from."
Gordon Brown speaking to oil industry leaders
On Tuesday the Treasury defended its plans to increase duty on more polluting cars registered since 2001 by as much as £200, saying this would increase the incentive to develop and purchase fuel-efficient cars.On Tuesday the Treasury defended its plans to increase duty on more polluting cars registered since 2001 by as much as £200, saying this would increase the incentive to develop and purchase fuel-efficient cars.
'Essential user' rebate
So far, 42 MPs have signed a Commons motion asking the chancellor to reconsider the policy on the grounds that it is retrospective and "unfair" to people who have already bought their cars.So far, 42 MPs have signed a Commons motion asking the chancellor to reconsider the policy on the grounds that it is retrospective and "unfair" to people who have already bought their cars.
Gordon Brown speaking to oil industry leaders
Mr Darling is due to meet backbenchers next week to discuss their concerns.Mr Darling is due to meet backbenchers next week to discuss their concerns.
Police said 100 lorries took part in a protest in London on Tuesday. Organisers said the figure was closer to 300.
And in Wales, police said 100 lorries took part in a convoy protest along the M4 motorway. Other estimates put the figure at 170.
The hauliers were demanding an "essential user" rebate of between 20 and 25p per litre on fuel for HGV drivers, without which, they say many will go out of business.
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