Oil & Gas UK Says Tax Needed to Increase Production over 5 Years

Oil & Gas UK

Oil & Gas UK's economics director, Mike Tholen, said, "Oil & Gas UK is encouraged by initial reports that the Chancellor plans to implement measures to increase North Sea production by 20% over the next five years.

"Delivering that extra production and consequently additional tax revenues to the Treasury will require a substantial reduction in the tax burden across the range of UK oil and gas projects, including new fields and additional investment in existing fields.

"Importantly, the measures we propose should pay for themselves over time because the extra activity stimulated will result in greater tax revenues being reaped by the Treasury than would otherwise be the case.

"Oil & Gas UK looks forward to the Budget announcement this week; with the right measures in place to support continued exploration and investment, the UK's oil and gas industry has great potential to help the economy through the recession."