With the Autumn Statement announced this week, Derek Leith, UK head of oil and gas taxation at EY, continues in the role of Energy Voice’s guest editor. Follow along each day as he spells out the challenges and triumphs the industry faces.
Chancellor George Osborne gave the North Sea oil and gas industry a clear signal that it will have to become its own saviour - by saying nothing about it in his Autumn Statement.
Energy Voice’s guest editor for the week, Derek Leith, breaks down the Chancellor’s latest Autumn statement. EY’s UK head of oil and gas taxation discusses whether the industry deserves as much airtime as the steel sector, cost efficiency versus taxation and what to expect next. Watch the video to find out more.
As the Autumn Statement is announced this week, Derek Leith, UK head of oil and gas taxation at EY, has taken up the role of Energy Voice’s guest editor. Follow along each day as he spells out the challenges and triumphs the industry faces.
Mexico’s second oil and gas auction marked a turning point for the industry.
Subsea contractor Ceona has gone into administration, with the loss of 102 jobs.
Energy Voice brought together an expert panel and an informed audience for Energy 2050 - Securing Our Future, offering a unique insight into where the oil and gas industry is headed in coming years.
Recent policy announcements withdrawing support for renewable energy have seen the attractiveness of the UK’s renewables market as an investment destination plummet, according to EY’s Renewable Energy Country Attractiveness Index (RECAI).
A managing partner at EY in Aberdeen said in order to “radically" improve the cost base in the UKCS there would need to be a behaviour change within the oil and gas industry. Speaking after the event, Derek Leith said he had been surprised by findings from Energy Voice’s research which showed a ‘negative’ view of the industry. Leith was joined by a panel including Sir Ian Wood, Andrew Reid, chief executive of Douglas-Westwood, Rebecca Wain, a 24-year-old graduate geologist and Michael Engell-Jensen, co-chairman of Offshore Europe at the Energy Voice – Securing Our Future event at the Tivoli in Aberdeen.
Energy reform has shown that it is an increasingly influential driver of deals activity in the global power and utilities sector, even as M&A reached a six-year low of US 50.9b in the first half of 2015, according to EY’s quarterly power transactions and trends quarter two 2015 report, released today.
The Red7Marine group of companies has gone bust, with 47 jobs axed, professional services firm EY said today. Red7Marine Group and its subsidiaries, Red7Marine and Red7Marine Offshore, provide offshore oil and gas, marine renewables, maritime inland subsea engineering and marine engineering services.
Against the backdrop of an oil price which has halved in the past year; where investment in the UKCS is forecast to fall dramatically over the next 2 years; and where exploration activity is at a worryingly low level, the pressure on the Chancellor has been mounting for the past few months. In the Autumn Statement the reduction in supplementary charge of 2% fell far short of industry hopes. However, the comments by Danny Alexander, Chief Secretary to the Treasury, the following day were more encouraging, signalling a fundamental change in policy for UK oil and gas exploitation. No longer is the focus to be on raising tax revenues but rather on the macro economic benefits of maximising the hydrocarbons extracted from the UKCS. The Budget tomorrow represents the first opportunity for the government to put this new policy into action.
Following the slide in oil price, which commenced in earnest in July 2014 and by 31 December had fallen by more than 40% in 6 months, alarm signals have been sounding loud and clear throughout the sector. Collectively industry drew a deep breath on the 1 January 2015 as it pondered what the year would bring. Could the price go lower than the $57 recorded on the 31 December and how soon would the price rebound? Well the answer to the first question has been yes, to just over $45 on January 13, and the answer to the second is anyone's guess but looks increasingly like a slow recovery with many predicting an average Brent price of $75 for 2016.
The head of oil and gas for professional services firm EY said the government has taken a "crucial step" towards protecting the longevity of the UK's oil and gas industry. Derek Leith said the recommendations were also in line with what had been set out in the Wood Review. The Chief Secretary to the Treasury, Danny Alexander, was in Aberdeen to outline three principles which will underline the future of oil and gas fiscal policy, as well as a new set of proposals. Mr Leith's comments come after he spoke to Energy Voice yesterday to give his initial reaction to the Chancellor's Autumn Statement.
The head of oil and gas for professional services firm EY said the Chancellor's announcement could prove to be a "turning point" for exploration and production in the North Sea. In an interview with Energy Voice, Derek Leith said the initial steps taken may receive a mixed review from the industry. Further announcements are expected tomorrow, in Aberdeen, by the Chief Secretary to the Treasury, Danny Alexander.