• 40 mins Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 3 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 5 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 7 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 8 hours OPEC Set To Move Fast On Cut Extension Decision
  • 10 hours Nigeria Makes First Step Away From Oil
  • 22 hours Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
Is Trouble Brewing In The Permian?

Is Trouble Brewing In The Permian?

While a majority of forecasts…

UK Shale Gas Industry to Receive Boost from Generous New Tax Regime

UK Shale Gas Industry to Receive Boost from Generous New Tax Regime

In his latest speech, which he gave to his party in a conference on Monday, George Osborne, the Chancellor of the Exchequer, gave hope to the UK shale gas industry.

He stated that, “we are today consulting on a generous new tax regime for shale so that Britain is not left behind as gas prices tumble on the other side of the Atlantic.”

Shale gas in the UK needs all the help that it can get. Due to difficulties that arise from mineral rights, population density, and environmental regulations, only a few wells have been drilled so far, far fewer than the hundreds or thousands that are needed to fully explore shale gas potential, and initiate a boom in the UK.

Ed Davey, the Energy and Climate Change Secretary who has been George Osborne’s opponent in almost all energy matters since the two took office, is not quite as positive about shale gas. “I know that industry analysts do see shale as a rather different proposition here than in the US. Questions about regulatory oversight and the involvement of local communities need to be answered rather than simply dismissed. And, of course, the deployment of any new energy source must be consistent with our carbon plan and carbon budgets.”

The Treasury has released a statement saying that, “with the shale gas industry at an early stage of development, the government believes that a targeted tax regime will help unlock investment. The use of field allowances to encourage investment in the North Sea has demonstrated the effectiveness of a targeted tax regime in stimulating investment and production that would not otherwise have gone ahead. The government will engage with companies to ensure that the final structure of the regime is appropriately targeted while maintaining a fair return for the exchequer.”

Many fear that public opposition to shale gas, and even tougher carbon emission targets, will scare investors from the sector, despite the efforts taken by the Treasury to attract them.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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