• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 1 min Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 14 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 3 hours Solar Cheaper than Coal
  • 3 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 5 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 13 hours California's Oil Industry Collapses Despite Shale Boom
  • 6 hours Global Warming Making The Rich Richer
  • 9 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 17 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 17 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 11 hours North Dakota oil output totals 1.39 million b/d in March, up 4% on month: state
  • 17 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 9 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours Crude oil?
OPEC+ Top Priority: Don’t Crash Oil Prices

OPEC+ Top Priority: Don’t Crash Oil Prices

OPEC+ is reportedly considering increasing…

U.K. Sees Net Loss on Tax Revenues from North Sea Oil

UK Oil Rig

The United Kingdom’s net revenues from taxes levied on oil and gas companies operating on or near the North Sea turned negative “for the first time since records began in 1968,” according to a report by London-based Argus Media.

The government collected £538 million (about US$790.5 million) during the 2015-16 fiscal year, but a change in tax rules and enforcement, coupled with chronically low oil prices, meant more money went out through investments and subsidies, than went in.

A statement by tax officials said it had expected to take a loss of £10 million, but "low oil prices… continuing high levels of investment and increasing amounts of decommissioning expenditures” led the deficit to increase.

Related: NATO Energy Security Threatened By Karabakh Conflict

Petroleum revenue taxes had been virtually eliminated by the U.K. starting from January 1st of this year, as a result of a measure decreasing the tax from 50 pence per unit to 0 pence. The move, coupled with other provisions, amounted to around one billion pounds of tax relief for oil and natural gas companies due to the oil price crash and ongoing recovery.

Earlier this year, North Sea operators turned unprofitable, according to an announcement by the Office of National Statistics.

The BBC estimates that up to 24 billion barrels of oil remain in the North Sea.

Related: Despite Oil Price Uncertainty Kuwait Spends Big On Infrastructure

The news also follows a collapse in the profitability of UK North Sea operators announced by the UK statistics office ONS earlier this year. A January analysis of the region’s operations showed that rigs and other drilling processes turn unprofitable when the Brent oil barrel price drops to under $50.

Nasdaq says Brent oil traded at $49.34 a barrel on Friday.

A report by Citigroup earlier this week said barrel prices should rise above $50 dollars a gallon by the third quarter of this year.

The Qatari head of OPEC said prices must reach $65 to spur new investments in the sector.

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