The industry body for the offshore sector said yesterday that “huge uncertainty” hangs over forecasts for the price of oil in coming decades.
Responding to the Office for Budget Responsibility (OBR) report on revenues over the next 30 years, Oil and Gas UK said: “As the OBR rightly points out, a forecast of tax revenues from oil and gas production in nearly three decades is very sensitive to commodity price predictions, around which a huge amount of uncertainty exists.
It is clear that with a tax regime that promotes investment in both infrastructure and production, there are existing UK fields that could continue producing well into the 2040s and beyond.
“While tax allowances have been given to stimulate investment in small, deep and technically challenging fields, attracting investment for the significant volume of brownfield and other reserves that lie ‘fiscally stranded’ is still a challenge. Oil and Gas UK is keen to continue to work closely and openly with government in pursuit of our shared and common purpose of maximising the recovery of Britain’s offshore oil and gas resource and the tax revenues and jobs that go with it.”
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