• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 1 hour Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 3 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 35 mins Tesla Launches Faster Third Generation Supercharger
  • 1 hour Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 3 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 5 hours EU has already lost the Trump vs. EU Trade War
  • 8 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 10 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 3 hours China's Renewables Boom Hits the Wall
  • 7 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 11 hours Iran's Master Plan?
  • 7 hours Trump On Farage's Radio Show ... #eggcarton

Breaking News:

Oil Rebounds On Surprise Crude Draw

Alt Text

Endless Economic Wars: A Major Threat For U.S. Oil Exports

The recently imposed Chinese tariffs…

Alt Text

How Much Oil Does The U.S. Really Own?

The scope of global oil…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is This Quietly Becoming The World's Best Place To Drill For Oil?

There's been a lot of hype over oil and gas mega-discoveries in places like Brazil and Africa the last few years.

But when it comes to making money from petroleum drilling, a completely different part of the world is getting interesting very quickly.

That's the North Sea. A mature basin that's seeing some big changes in fiscal regimes, which could make exploration and development here surprisingly profitable.

And things got even better last week. When the U.K. government announced a slate of new financial incentives for petroleum developers here. Related: Big News For Uranium Miners Could See A Price Rebound Soon

As part of the country's March budget, officials announced some significant enhancements to "Investment Allowance" rules for the oil and gas industry. Most importantly, allowing a broader range of capital expenses to qualify for tax breaks.

The new rules also call for longer leases on production units here. And create a 2% cut in corporate tax.

All of these measures will improve profitability for North Sea drillers. And this could be just the beginning of reforms. Related: Can This Next Shale Hotspot Live Up To The Hype?

The oil and gas industry here has been lobbying hard for changes -- with drilling activity this year having seen only 7 new wells spudded. And judging from last week's events, the government seems to be paying attention. Which could mean other measures requested by industry materializing -- including exploration support and tax relief for activities like decommissioning.

These sorts of metrics can have a surprisingly strong effect on profitability. Especially for smaller discoveries of the kind that are now the norm in this mature part of the world. Related: More Job Losses Coming to U.S. Shale

Tax incentives like these played a major role in revitalizing the U.S. Gulf of Mexico -- which today has become one of the world's go-to offshore plays. Driven by new play concepts that have led to massive discoveries in places like the ultra-deepwater environment.

If reforms in the U.K. continue, we could see a similar renaissance here. Watch for more announcements from the government over the next 12 months.

Here's to making necessary changes,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play