There are 51 known new fields in British waters that could be feeding domestic pipes but have been rendered “unviable” by current government policies, including the windfall tax and a ban on exploration licences.
On top of these, some 60 extensions to existing fields are being held back for the same reasons, according to trade body Offshore Energy UK (OEUK).
The data emerged from a survey of offshore operators to see how they have responded to the taxes and regulations imposed by successive governments.
OEUK said the fields would be viable under “reform to the current regulatory and fiscal regime”, particularly by overhauling the windfall tax – known officially as the energy profits levy.
David Whitehouse, the trade body’s chief executive, said: “Our proposal will unlock immediate investment, secure tens of thousands of jobs and deliver more tax, not less, for essential services like schools and hospitals.
“The future of the North Sea is in our hands. Our message to the Government is simple. Reform the energy profits levy in 2026 to unlock more tax, not less, support more jobs, not less and deliver more homegrown energy, not less.”
Ed Miliband, the Energy Secretary, is under increasing pressure to relax the Government’s stance on North Sea drilling as the Middle East crisis heightens scrutiny of energy imports.
Along with the Conservatives, John Swinney, the SNP leader and Scottish First Minister, industry leaders including Greg Jackson, the Octopus Energy boss, Chris O’Shea, the British Gas chief and Tara Singh, the RenewablesUK boss, are among those who have backed more drilling.
Supporters say that maximising the North Sea’s output would generate tax revenues, preserve jobs and result in lower carbon emissions than oil and gas from abroad.
However, Mr Miliband has pushed back against the calls, arguing that it cannot “take a penny off bills”....<<<Read More>>>...
