US EditionWindfall tax risks ‘killing off North Sea within years’
Reforming the windfall tax could unlock £137 billion and create 23,000 jobs by encouraging investment and securing the future of the North Sea oil and gas sector, industry leaders say.
- Next year, Chancellor Rachel Reeves must consider reforming the Energy Profits Levy, urged by Offshore Energy UK at an Aberdeen conference, before its March 31, 2030 expiry.
- OEUK argues the current levy is punitive, noting the windfall tax was raised to 38% from 35% effective November 1, 2024, and reform could unlock $185 billion, 23,000 jobs, and add over �137 billion to communities.
- Modelling underpinning the proposal shows the Energy Profits Levy would become a permanent profit-based mechanism, lowering headline tax rates from 78% to 40% while still generating revenue when prices are high, with production projected to fall about 40% from 2025 levels within five years without reform.
- OEUK cautioned that delaying change may raise £6bn short-term but accelerate North Sea decline, while the Scottish Government urged UK ministers to seek the earliest possible EPL end date and analyses say reform could boost jobs and energy security.
- Analysis shows the UK needs between 10-15 billion barrels while producers are only lined up for about 4 billion; today, 85% of homes are gas-heated and around 23 million vehicles still rely on petrol and diesel.
13 Articles
13 Articles
New Oil and Gas Tax Model Could Boost UK Economy by $185 Billion
A reform of the current punitive windfall tax on UK North Sea oil and gas could unlock additional $185 billion (£137 billion) for Britain’s economy by 2050, the top industry body OEUK said on Monday. The UK oil and gas industry, as well as major players in the North Sea, have deplored the Energy Profits Levy (EPL), as the windfall tax is officially known, since it was first introduced by the Conservative government in 2022 and subsequently rai…
perspectivemedia.com
The Independent (US)Change windfall tax to make £137bn by 2050, Chancellor told
Offshore Energy UK said the the energy profits levy should be replaced next year with a profits-based mechanism. Chancellor Rachel Reeves has been urged to reform the windfall tax in a move that could boost the economy by £137 billion by 2050. Ahead of the start of its conference in Aberdeen this week, trade body Offshore Energy UK (OEUK) released a report claiming replacing the energy profits levy next year with a profits-based mechanism could …
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