• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Energy Armageddon
  • 13 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 3 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 13 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Goldman Betting on Cryptocurrencies
  • 7 days Сryptocurrency predictions
  • 12 days Putin and Xi Bet on the Global South
Tap Oil Fields, Not Our Emergency Reserves, To Lower Energy Prices

Tap Oil Fields, Not Our Emergency Reserves, To Lower Energy Prices

America’s Strategic Petroleum Reserve has…

Japan Believes An LNG Supply Squeeze Is Looming

Japan Believes An LNG Supply Squeeze Is Looming

Japan, the world’s largest LNG…

Nigeria’s Oil Industry Can Flourish Despite Oil Theft

Nigeria’s Oil Industry Can Flourish Despite Oil Theft

While Nigeria’s oil industry is…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

British Gov. Puts North Sea Oil On Life Support

The United Kingdom is moving quickly to resuscitate its dying oil and gas sector, slashing taxes on the industry in order to make the UK more competitive.

The British oil and gas industry has been arguing for quite some time that the tax regime is too burdensome, citing taxes of up to 80 percent. The industry has to pay a 30 percent corporate tax, plus a 30 percent supplementary tax, and a variety of other energy related taxes. Combined, the industry says, the tax system stifles production and pushes companies to look abroad for business.

Related: UK To Block Russian Oligarch’s Gas Grab In North Sea

Add to that the fact that North Sea oil and gas is mature, declining, and expensive. Producing in the harsh conditions off the northern coast of the British islands is not an easy – or cheap – proposition.

British oil and gas production has been declining for years, but the severe drop in oil prices presented the sector with an existential crisis. The oil majors that operate in the North Sea – Royal Dutch Shell, BP, Chevron – have committed to significant cuts to their capital expenditures. They have reviewed the highest cost production in their global portfolios, and concluded that the North Sea should be on the chopping block.

Related: EU Energy Union Could Start In The North Sea

As a result, fears of permanent decline have set in. Without action an estimated 100,000 jobs could be lost. The British government hopes to stave off the worst, and unveiled a rescue package on March 19. The supplementary tax will be reduced from 30 percent down to 20 percent. A separate petroleum tax on older oil fields will be slashed down to 35 percent from the current 50 percent. All told, the tax cuts will cost the British government 1.3 billion pounds through 2020. The CEO of Oil & Gas UK, an industry trade group, said the tax cuts “laid the foundations” for a revival of the North Sea.

Related: Leaked Document Could Shatter UK Shale Dreams

If all goes according to plan, the rescue package could boost oil and gas production in the UK by 15 percent and incentivize an additional 4 billion pounds in investment by the end of the decade.

The most significant variable in the industry’s survival in the UK is the price of oil, which would need to rebound to much higher levels to ensure continued operation in the North Sea. But that is not something the British government can control.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Doogie on March 19 2015 said:
    Interesting news.
    I am curious what the equivalent combined tax rate North American oil producers pay. Anybody care to respond?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News