London Daily

Focus on the big picture.
Saturday, May 31, 2025

UK oil, gas firms to leave year's worth of output in ground with tax hikes-report

UK oil, gas firms to leave year's worth of output in ground with tax hikes-report

Windfall taxes mean oil and gas producers in the British North Sea will likely leave 500 million barrels of oil equivalent in the ground over the next decade, the equivalent of one year's output in the ageing basin, industry group OEUK said on Tuesday.

Over the past year, Britain has introduced windfall taxes on oil and gas as well as on renewables, which companies say stifles investment and in turn will likely increase Britain's dependence on imported fuels and derail its climate targets.

In the oil and gas sector, the taxes are likely to result in reduced investment of between 3 billion to 5 billion pounds ($3.67 billion to $6.12 billion) over the next decade or so, Offshore Energies UK (OEUK) market intelligence manager Ross Dornan told reporters.

This reduction in investment is expected despite a tax incentive of around 91 pence per pound spent on new hydrocarbon production, which renewables producers are also calling for in their sector.

The British North Sea produced just under 1.4 million barrels of oil equivalent per day (boed) last year, down from a peak of around 4.4 million boed in 1999.

"When we talk about investment in the UK oil and gas resources, it's not about exponential growth, it's about managed decline," Dornan said.

Britain, a net energy importer since 2004 whose energy mix last year was made up of 76% oil and gas, will likely produce 500 million barrels less hydrocarbons - "enough to support the nation for six months or (the) same as one year’s North Sea output" - due to investment cuts, according to the OEUK.

The report came as Britain's government is set to announce energy security measures on Thursday, according to industry sources, which could see changes to taxes and investment incentives for the offshore industry.

Any fresh incentives for oil producers are likely to be decried by climate activists, not least since Britain experienced an oil leak over the weekend at Anglo-French oil company Wytch Farm's onshore field in Dorset.

Britain's biggest oil and gas producer, Harbour , has announced job cuts and shunned the latest licensing round. TotalEnergies (TTEF.PA) cut its UK investment programme by a quarter.

Development of what would be the world’s largest wind farm off the coast of Britain is in doubt, with Orsted ORSTED.CO saying it needs more support to proceed with the project.



Britain's oil and gas production


($1 = 0.8166 pounds)

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×