Treasury documents released last week could spell good news for North Sea decommissioning and CCUS investment, but tax uncertainty remains.
Without the government’s new Energy Profits Levy, Shell said it wouldn’t have had to pay corporate tax in the UK.
While support for new North Sea oil and gas has been welcomed, the energy sector has called for a drop in windfall taxes and greater incentives for low-carbon investment ahead of the Chancellor’s impending budget.
Aberdeen and Grampian Chamber of Commerce has called for a new body independent of government to be set up to oversee UK energy security and the transition to net zero.
Assets are at risk of being shut down early, says the regulator, as the number of wells drilled drops.
The “reactionary” windfall tax is harming net zero, deals and production, warns Viaro Energy CEO Francesco Mazzagatti.
Harbour Energy (LON: HBR), the UK North Sea's top oil and gas producer, has emerged from its restructuring process, capped with changes of its leadership team.
States which banked "staggering" profits from the high price of oil last year should pay a global windfall levy to help poorer nations in the fight against climate change, former prime minister Gordon Brown has said.
Serica reported a large increase to pre-tax profits but lambasted the “burden” of the UK windfall tax on the wider industry.
Around £100 billion of North Sea projects are being held up over political uncertainty – while UK oil production hit its lowest in nearly 30 years.
TotalEnergies is weighing up its projects for FID (final investment decision) in the West of Shetland, but the uncertain fiscal regime in the UK may have an impact.
Harbour Energy (LON: HBR) chief executive Linda Cook told investors that her firm will lobby government to include carbon capture and storage (CCS) spending in windfall tax allowances.
A number of the UK’s biggest operators have axed projects or scaled back spending in response to the levy, and “Ithaca is not immune to that”.
Ithaca says its production will drop next year as the EPL causes project deferrals or cancellations for 2023 and 2024.
His comments come ahead of a rumoured government summit dedicated to reversing the flight of capital from the North Sea.
The UK government is launching a review of its oil and gas fiscal regime and has launched a call for evidence.
Energy giant BP (LON: BP) has unveiled its second quarter results, reporting net profits of $2.58bn and providing an outline of its UK windfall tax payments.
Apache has brought forward plans to end Forties, a foundation of North Sea production since the 70s, by 11 years.
David Duguid, who represents Banff and Buchan, has spoken out in parliament against windfall taxes on energy companies such as BP.
Having made 7,500 cuts across the globe in 2020, figures published by the oil giant show UK numbers have nearly recovered to pre-pandemic levels.
"Most projects would benefit if the EPL is removed, but long-lead time projects could look worse."
The regulator is not expected to use its ultimate sanctioning powers here - even if licensing rules have been breached.
While a ‘price floor’ in the North Sea windfall tax has been welcomed, north-east energy experts questioned whether it's enough to spur new investment.
Apache has suspended all North Sea drilling amid a "burdensome tax and regulatory regime", but workers say the firm is still making a "chunk of cash" from the region.
There are claims that a lack of change to the renewables windfall tax is undermining the UK’s claim to be a leader in green energy.