Energy
UK North Sea Oil Lobby Warns of Investment Slump Due to Windfall Tax Increase
- Capital spending may fall to £2.3 billion in 2025-2029: OEUK
- Almost half of additional output would be uneconomic, it says
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The UK’s new tax system for North Sea oil and gas could lead to an investment slump of more than 80%, the industry lobby group warned.
Changes announced by the new government, including a higher windfall tax and removal of an investment allowance, may mean capital spending on UK projects dwindles to £2.3 billion ($3 billion) from 2025 to 2029, down from an estimated £14.1 billion under the current fiscal regime, Offshore Energies UK said Monday.