North Sea Oil Producers Push Burnham to Scrap Windfall Tax
Russia, Germany Add Diesel Supply as Fuel Market Scrambles for Barrels Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… Since coming into office, the Labour Party has heavily taxed oil and gas companies operating in the U.K.
North Sea and restricted the development of new fossil fuel projects.
However, there is still potential for two major projects to be developed if approved by the country’s new Prime Minister, Andy Burnham.
While environmentalists and climate groups are deeply concerned about the harm new fossil fuel projects would cause, several oil executives believe new exploration could contribute significantly to the economy.
A recent industry report suggests that the U.K.
could meet around half of its oil and gas needs without imports if the government provided more support to the sector.
Offshore Energies UK (OEUK) emphasised the need to amend the existing windfall tax and approved the controversialRosebank and Jackdaw projects– which have been challenged in the Scottish courts on environmental grounds – to unlock 111 projects and attract £50 billion in investment.
North Sea oil and gas production has fallen in recent years as the government has introduced strict limits on new drilling.
The country’s domestic supplies are now expected to meet just one-third of U.K.
The OEUK said in its report that increasing domestic production could help offset the need for fossil fuel imports.
The firm also calls for the existing Energy Profits Levy (EPL), which is in place until 2030, to be abandoned next January, saying it has stifled investment in recent years.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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