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UK's North Sea Bust
From Rigzone there's a great article on the future of UK's North Sea oil industry. It's a boring article on tax structure and one analyst's argument that the UK needs to restructure (euphemism for "lower") taxes on North Sea oil production. Be that as it may, look at some of these data points and/or comments:
- in order to reflect the maturity of the UK continental shelf (UKCS): maturity of the field
- low oil prices affecting entire economy of Scotland; does this sound familiar?
- hotel occupancy: a 15% decrease; does this sound familiar?
- housing sales: down by 14% during the previous 12 months; does this sound familiar?
- investment in the UKCS will be less than $1.4 billion this year (2016)
- compare that to a typical level of $11 billion annually over the last five years
Current UK taxes on the oil and gas industry:
- 50% tax on production profits
- 67.5% for older fields
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