Estimates for North Sea oil revenues have been upwardly revised by an average of £1.2billion per year by the Office for Budget Responsibility.
Following the Chancellor’s budget, the OBR has increased its prediction for revenues by an average of £1.2billion a year, compared to an earlier forecast in March.
The increased price of oil in the near-term boosts receipts by £1.2billion in 2018-19 and £2.2billion a year on average across the rest of the forecast to 2023.
Meanwhile a marginal increase in production by the end of the forecast boosts revenues by £100million in 2022-23.
After initially forecasting £900m in North Sea revenues for 2018-19 in March, the OBR now expects £1.5billion.
2022-23 has seen the highest surge, reaching £2.7billion, up from a forecasted £900million in revenues in March.
However, some aspects including an increase in expenditure have negatively affected predictions.
The price of Brent crude oil has recently surged to more than $85 a barrel.
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