Biggest North Sea producer refuses to drill new oil wells because of windfall tax
2 years ago

Biggest North Sea producer refuses to drill new oil wells because of windfall tax

The Telegraph  

Britain’s largest North Sea oil producer is refusing to bid for new UK oil and gas wells and reviewing its investments in response to the Government’s tax raid on the sector. Harbour Energy said it had decided not to bid for new blocks in the ongoing North Sea licensing round, the first since 2019, after the Government imposed a windfall tax on oil and gas producers earlier in the year. Since then, a windfall levy on oil companies, which was first introduced in May, has been increased to take the overall tax rate on North Sea producers from 40pc to 75pc until 2028. David Bunch, Shell’s UK chairman, said in late November the tax "brings a strong headwind", adding: “In terms of future projects, you're gonna have to rerun the economics and take a view on a project by project basis.” The windfall tax includes generous investment allowances meaning business can claim £91.40 in tax relief for every £100 invested.

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History of this topic

Miliband’s wind turbine blitz will leave North Sea littered with ‘abandoned rigs’
1 month ago

Miliband’s wind turbine blitz will leave North Sea littered with ‘abandoned rigs’

The Telegraph  

Ed Miliband’s wind turbine blitz threatens to leave the North Sea strewn with rusting oil rigs because of a lack of equipment needed to dismantle the retired platforms. The Energy Secretary’s rush to build new offshore wind turbines risks depriving the oil and gas sector of the heavy-lift ships and cranes needed to remove the rigs, industry trade body Offshore …

Why the rapid death of North Sea risks leaving taxpayers on the hook for billions
3 months ago

Why the rapid death of North Sea risks leaving taxpayers on the hook for billions

The Telegraph  

Labour’s tax raid on the UK’s North Sea oil and gas producers risks leaving taxpayers on the hook for billions of pounds more in decommissioning charges than first thought, analysts have warned. Rachel Reeves’s decision to raise overall taxes to an astonishing 78pc, the highest of any sector, and strip the industry of tax allowances will drive down profits so …

Ed Miliband’s tax crackdown ‘will destroy North Sea oil’
4 months, 2 weeks ago

Ed Miliband’s tax crackdown ‘will destroy North Sea oil’

The Telegraph  

Ed Miliband’s North Sea tax crackdown risks destroying the UK’s oil and gas industry and making Britain even more dependent on imports, a leading operator has warned. EnQuest, which operates some of the UK’s most strategically important offshore assets, hit out at a decision to add three percentage points to the taxes imposed on oil and gas profits and strip …

North Sea oil giant demands windfall tax overhaul after £63m hit
8 months, 3 weeks ago

North Sea oil giant demands windfall tax overhaul after £63m hit

The Telegraph  

This gives Enquest a crucial role in the UK’s carbon capture and storage plans, in which CO2 would be pumped deep into subsea rocks for permanent storage. Amjad Bseisu, chief executive, said the company delivered strong performance and reduced net debt “against the backdrop of a challenging UK fiscal environment”. EnQuest’s report added: “As expected, the windfall levy has impacted …

Hunt tax raid puts net zero project at risk
9 months, 2 weeks ago

Hunt tax raid puts net zero project at risk

The Telegraph  

A pioneering net zero project is at risk of becoming uneconomic because of Jeremy Hunt’s North Sea windfall tax, its key investor has warned. Harbour Energy said that the Viking carbon capture scheme is less viable because of the Chancellor’s tax raid. The company, which is the biggest oil and gas producer in British waters, faced an effective tax rate …

Most North Sea oil and gas projects risk being ‘unviable’ under Labour plans
10 months, 3 weeks ago

Most North Sea oil and gas projects risk being ‘unviable’ under Labour plans

The Telegraph  

The report said: “The Labour party currently has a healthy lead in the polls. “Our analysis shows that only a quarter of all new projects in the North Sea would be economically viable under Labour’s earlier proposals. Ross Dornan, markets intelligence manager at Offshore Energies UK, said: “Domestic resources supply about half our needs …it is crucial that we have …

New North Sea oil projects insignificant for UK energy independence, says non-profit
11 months, 2 weeks ago

New North Sea oil projects insignificant for UK energy independence, says non-profit

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The government’s claim of bolstering the UK’s energy security through new licenses “doesn’t stand up to scrutiny”, the research …

‘Oil and gas will power Britain for decades to come’
11 months, 2 weeks ago

‘Oil and gas will power Britain for decades to come’

The Telegraph  

Britain must kickstart a drilling race to extract the billions of barrels of oil and gas that remain offshore, says the chief executive of the North Sea Transition Authority. “Oil and gas has clearly been a dominant part of the North Sea’s history for the last 50-60 years. And it’s going to be a significant part of its next 25-40 …

PM accused of ‘pandering’ to corporate interests over new oil and gas licences
1 year, 1 month ago

PM accused of ‘pandering’ to corporate interests over new oil and gas licences

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Climate activists have accused Rishi …

Explained | What is the row over UK’s Rosebank oil field?
1 year, 2 months ago

Explained | What is the row over UK’s Rosebank oil field?

The Hindu  

The story so far: Angering enivronmental activists across United Kingdom, the British government okayed one of the country’s biggest new oil and gas projects —the North Sea Rosebank field— on September 27. While initially questioning Equinor about the environmental impact of the project, the North Sea Transition Authority — UK’s oil and gas regulator— okayed the project after considering the …

Britain approves new North Sea oil drilling in welcome news for the industry but not activists
1 year, 2 months ago

Britain approves new North Sea oil drilling in welcome news for the industry but not activists

Associated Press  

LONDON — Britain on Wednesday gave the go-ahead for a major oil and gas project in the North Sea, ignoring warnings from scientists and the United Nations that countries must stop developing new fossil fuel resources if the world is to avoid catastrophic climate change. “Energy security and cheaper bills aren’t delivered by allowing highly subsidized, foreign-owned fossil fuel giants …

North Sea operator blames windfall tax as it axes 350 jobs
1 year, 8 months ago

North Sea operator blames windfall tax as it axes 350 jobs

The Telegraph  

Britain’s biggest oil and gas producer has confirmed plans to axe one fifth of its workforce, blaming Jeremy Hunt’s windfall tax for deterring investment. News of the job cuts came just hours after fellow North Sea producer Enquest said its Kraken field would face “natural decline” after the levy prompted bosses to delay further drilling. Harbour has been one of …

Oil giant Harbour Energy blames windfall tax as it cuts hundreds of jobs
1 year, 11 months ago

Oil giant Harbour Energy blames windfall tax as it cuts hundreds of jobs

The Telegraph  

Britain’s largest North Sea producer has blamed the new windfall tax as it prepares to cut hundreds of jobs and shift attention to outside of the UK. Harbour Energy says it is reviewing its UK organisation “to align with lower future activity levels” after the tax rate on North Sea drillers was increased from 40pc to 75pc following months of …

‘Misguided’ North Sea oil and gas dash risks impacting offshore wind targets
2 years ago

‘Misguided’ North Sea oil and gas dash risks impacting offshore wind targets

The Independent  

The Conservative government’s renewed support for oil and gas extraction in the North Sea may come at the expense of the UK’s offshore wind industry, further hampering any chance of the country reaching its 2050 net zero emissions targets. "The potential crowding out of offshore wind developers for people and assets risks delaying projects, and could hamper the UK’s ability …

Shell reconsiders £25bn investment in UK energy over windfall tax raid
2 years, 1 month ago

Shell reconsiders £25bn investment in UK energy over windfall tax raid

The Telegraph  

In his speech to the Confederation of British Industry’s annual conference on Monday, the Prime Minister defended the Autumn Statement and insisted that the Budget had restored confidence and stability. He acknowledged there was “more we need to do” but said the Government’s decision to protect spending on research and development would boost innovation, calling on businesses to step up …

UK Budget 2022: Oil and gas giants are hit by higher windfall tax in autumn statement
2 years, 1 month ago

UK Budget 2022: Oil and gas giants are hit by higher windfall tax in autumn statement

Daily Mail  

Jeremy Hunt today announced he would increase the windfall tax on oil and gas firms and extend it to power generation firms as he seeks to raise money to plug a major hole in the public finances. Email [email protected] This means wind farms in UK waters will pay a higher windfall tax than the oil and gas rigs operating nearby. …

Levy on oil and gas firms’ windfall profits expands to renewable energy
2 years, 1 month ago

Levy on oil and gas firms’ windfall profits expands to renewable energy

The Telegraph  

Energy producers have been targeted with taxes aimed at raising £54 billion by 2028 from what the Chancellor said were “windfall profits”. The new rate will take effect from Jan 1, taking oil and gas producers’ total tax rate to 75 per cent. Meanwhile, a new levy will also take effect from Jan 1 on low-carbon electricity generators, set at …

UK to raise £40bn in 5 years as Rishi Sunak extends windfall taxes on energy firms
2 years, 1 month ago

UK to raise £40bn in 5 years as Rishi Sunak extends windfall taxes on energy firms

India Today  

British Prime Minister Rishi Sunak and finance minister Jeremy Hunt are planning to extend windfall taxes on oil and gas companies to raise nearly 40 billion pounds over the next five years, a report said. The report comes days after four of the five largest global oil companies altogether reported net income amounting to nearly $50 billion, lifted by tight …

Labour blasts ‘absurd’ tax regime after report shows oil giant Shell received £100m from UK
2 years, 4 months ago

Labour blasts ‘absurd’ tax regime after report shows oil giant Shell received £100m from UK

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Labour has accused the government of favouring oil and gas giants …

Third of windfall tax cash raised ‘could be handed back to oil firms’
2 years, 6 months ago

Third of windfall tax cash raised ‘could be handed back to oil firms’

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A third or more of any revenue raised by the chancellor’s new windfall tax on …

Rishi Sunak’s ‘obscene’ tax relief for fossil fuel firms will ‘cost taxpayer £1.9bn a year’
2 years, 6 months ago

Rishi Sunak’s ‘obscene’ tax relief for fossil fuel firms will ‘cost taxpayer £1.9bn a year’

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Rishi Sunak’s new tax relief on investment in oil and gas extraction in the UK …

UK unveils $18bn household aid, 25 percent energy profit tax
2 years, 6 months ago

UK unveils $18bn household aid, 25 percent energy profit tax

Al Jazeera  

Britain has announced a 25 percent windfall tax on oil and gas producers’ profits, alongside a 15-billion-pound package of support for households struggling to pay soaring energy bills. The move, which will give each United Kingdom household a 400-pound discount on energy bills and provide more for the lowest-income households, marks a change of heart for Prime Minister Boris Johnson’s …

Government to ramp up North Sea oil and gas production ‘to maximum extent,’ says Treasury secretary
2 years, 9 months ago

Government to ramp up North Sea oil and gas production ‘to maximum extent,’ says Treasury secretary

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The government is planning to allow drilling for North Sea oil and gas “to the …

The UK government cannot invest into North Sea oil while claiming global climate leadership
2 years, 9 months ago

The UK government cannot invest into North Sea oil while claiming global climate leadership

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Coal and other fossil fuels are choking humanity.” And what was the response from the UK government, currently president …

Gas and oil giants should pay a windfall tax to tackle the energy crisis
2 years, 10 months ago

Gas and oil giants should pay a windfall tax to tackle the energy crisis

The Independent  

Oil giant BP has reported its highest profit for eight years, days after Shell reported a 14-fold increase in quarterly profits. A one-off windfall tax in the UK on fossil fuel giants to help hard-pressed households cope with record energy bills is urgently required. Alex Orr Edinburgh Much attention is on the oil giants, who already pay a large amount …

Britain needs 'more gas, not less', says BP chief as surging profits spark calls for windfall tax
2 years, 10 months ago

Britain needs 'more gas, not less', says BP chief as surging profits spark calls for windfall tax

The Telegraph  

Looney also announced plans to increase BP's spending in renewables while cutting carbon emissions faster, as he tries to position the company for a global shift in the energy system. BP said it will launch a further $1.5bn of share buybacks before its first-quarter results, alongside a dividend payout of 5.46 cents per share for the last three months of …

Three in four Tory voters back windfall tax on oil and gas companies
2 years, 11 months ago

Three in four Tory voters back windfall tax on oil and gas companies

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Seventy-five per cent of Tory voters told Savanta ComRes they …

UK government to face legal challenge over support for oil and gas in North Sea
3 years, 4 months ago

UK government to face legal challenge over support for oil and gas in North Sea

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The UK is to face a legal challenge over its continued support for fossil fuel …

Can we defund fossil fuel companies and also protect jobs?
3 years, 7 months ago

Can we defund fossil fuel companies and also protect jobs?

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. It’s estimated that more than 250,000 UK jobs – including those in the wider supply chain and associated sectors …

Beginning of end for North Sea as ministers consider exploration ban
3 years, 9 months ago

Beginning of end for North Sea as ministers consider exploration ban

The Telegraph  

Ministers are considering declaring the beginning of the end for the North Sea oil industry with a ban on new exploration licences. The radical move is on the table as part of a decisive shift away from fossil fuels and as part of preparations for the crucial climate summit the Government is due to host in Glasgow in the autumn. …

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