Insight
UKCS tax rate reduced in response to high costs and falling oil prices
This report is currently unavailable
Report summary
On 3 December the marginal tax rate for new fields on the UKCS was reduced for the first time in 15 years. Our analysis shows the firm fiscal changes are encouraging, but not enough to push marginal projects over the line. We use scenarios to illustrate how further step-changes in SCT could impact project economics. Oil price will be fundamental in dictating project returns. As such the government will have to respond to downward price changes if it wants the UKCS to remain globally competitive.
Table of contents
- Introduction
- Supplementary Charge Tax decreases
- Ring Fence Expenditure Supplement
- Cluster Allowance
-
Implications
- The UKCS roadmap – shifting from maximising tax take to maximising recovery
- Significant tax rate changes may be needed
- Conclusions
Tables and charts
This report includes 3 images and tables including:
- A high cost and falling price back-drop
- Value shift for the UK oil and gas industry
- Scenarios: Marginal, high cost projects impacted severely
What's included
This report contains:
Other reports you may be interested in
Insight
Pemex financial health: reasoning and impact on recent hydrocarbon duty government aid
Fiscal reductions have alleviated some Pemex financial struggles, but further action is required to return to self-sufficiency
$1,350
Asset Report
Ziar Nad Hronom aluminium smelter
A detailed analysis of the Ziar Nad Hronom (P) aluminium smelter.
$2,250
Asset Report
Essen aluminium smelter
A detailed analysis of the Essen aluminium smelter.
$2,250
