Tax increase the en...
 

  You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more

[Closed] Tax increase the end of UK oil and gas industry?

4 Posts
5 Users
0 Reactions
50 Views
 benz
Posts: 1143
Free Member
Topic starter
 

Recently increase in supplementary taxes resulting in some fields paying 81% tax.

I have a horrible feeling that large multi-nationals will simply start investing elsewhere in more stable fiscal regimes - to the detriment of the UK being able to benefit from some pretty challenging fields which may currently be going through investment analysis stage.

All to spare the UK consumer from £0.01 per litre of fuel....sadly same consumers who may wonder how much of the £6.50 per gallon of diesel goes as tax...

US cousins upset as they are currently paying just over $4 per USG....


 
Posted : 10/05/2011 7:31 pm
Posts: 36
Free Member
 

http://www.bbc.co.uk/news/uk-13256597

Morecambe Bay produces about 6% of the UK's annual gas requirements, or up to 12% of residential gas demand, according to Centrica.

The company says the tax increase means its North Morecambe field is now subject to a 62% tax rate and South Morecambe 81%.


 
Posted : 10/05/2011 7:33 pm
Posts: 0
Free Member
 

If they stop extracting it now, they'll be back later once the value of it increases (through shortages).


 
Posted : 10/05/2011 7:37 pm
Posts: 0
Free Member
 

I work in the industry and i think there is a lot of posturing by the operators at the moment.
It will have an impact with the smaller companies and marginal fields however, unless there is a u-turn.


 
Posted : 10/05/2011 7:40 pm
Posts: 50252
Free Member
 

My beer influenced state is looking forward to TJ arriving to tell us the TRUTH in FACTS!


 
Posted : 10/05/2011 7:47 pm

6 DAYS LEFT
We are currently at 95% of our target!