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'Make-or-Break' Budget Falls Short for Oil Industry as Windfall Tax Remains
North Sea investment hits record low as 1,000 jobs are quietly lost monthly due to the 78% Energy Profits Levy deterring oil company spending, Robert Gordon University found.
- Ms Reeves left the Energy Profits Levy unchanged at a headline 78%, and Treasury confirmed the levy will remain until 2030.
- Introduced after Russia's invasion of Ukraine, the tax was set when prices spiked, but with oil price at about $60 a barrel, industry operators say it now drives cash overseas.
- Evidence from industry highlights a reformed EPL could unlock over 100 projects, generate £50billion of investment, and protect around 160,000 jobs, with jobs being 'quietly' lost at about 1,000 a month according to a Robert Gordon University study.
- Trade bodies warned firms shifting investment overseas will put Scotland and the UK's energy security at risk, with Offshore Energies UK citing thousands of immediate job losses and the Office for Budget Responsibility projecting a 93 per cent tax revenue drop.
- The government offered limited 'tiebacks' flexibility, but industry calls the tiebacks policy concession meaningless while Treasury's planned replacement tax and Energy Minister Ed Miliband's clean energy plan aim to support transition.
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Oil & Gas 360Windfall tax stays: UK decision alarms North Sea oil and gas producers
The UK will keep its North Sea windfall tax in place until 2030, according to the Office for Budget Responsibility, despite industry warnings that the levy is accelerating production declines, deterring investment, and threatening thousands of offshore jobs.
·Houston, United States
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Total News Sources11
Leaning Left2Leaning Right1Center2Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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