• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 7 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 15 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 hour Renewable Energy Could "Effectively Be Free" by 2030
  • 2 hours Saudi Fund Wants to Take Tesla Private?
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 11 hours Starvation, horror in Venezuela
  • 20 hours Venezuela set to raise gasoline prices to international levels.
  • 14 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
Bears Are Back In The Oil Market

Bears Are Back In The Oil Market

In the midst of an…

Is This A Game Changer For Drones?

Is This A Game Changer For Drones?

Fuel cell technology could significantly…

Norway Plans Tax Breaks For Oil Companies In Arctic

Arctic

New tax breaks will put Norwegians on the hook for oil production taxes levied by the United Nations for drilling deeper in the Arctic, according to Reuters.

The report suggests the strategy of spreading legal costs to citizens could set an example for other nations planning to explore fossil fuel production farther and farther from solid land.

Opposition parties in Norway seek to limit oil exploration in the country’s waters. The Scandinavian country’s sovereign wealth fund is famed for using its fossil fuel wealth to fund the development of green energy initiatives within its borders.

“There is too little risk on the companies, and too much risk on the people of Norway,” Ola Elvestuen, who chiefs the Energy and Environment committee as a representative from the small Liberal Party, said. “Neither me, nor the committee were informed about this,” he said regarding the plans, which were described in special letters given to Reuters by the Oil and Energy Ministry.

Article 82 of the U.N. Convention on the Law of the Sea stipulates that rich nations must pay a seven percent tax per year on any fossil fuel production that occurs beyond 200 nautical miles from land. The capital from those fines are meant to be used to fund development efforts in other countries.

Related: Post Harvey: Crude Climbs As Gasoline Crashes

Hypothetically, the International Seabed Authority based in Jamaica would receive the money for its projects, but no country has yet attempted to drill so far into the ocean. The United States and Norway are the only two nations that have discussed the implementation of Article 82, with the former concerning itself with efforts to explore further in the Gulf of Mexico.

“The licensees could be required to cover certain costs in this connection,” the petroleum ministry wrote in the letters to oil companies. “Any such cost will be deductible in the calculation of the petroleum tax.”

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News