Angeliki Terpou’s CPS blog on North Sea oil was quoted in an article from The Scotsman on the budget.
“Angeliki Terpou, energy economist and research fellow at the Centre for Policy Studies, says the fiscal regime for the exploration and production of oil and gas had been “in dire need of reform”, adding: “Tax revenues have collapsed in recent years despite much higher tax rates and oil output has continued to fall. Meanwhile, Brent crude oil prices have fallen by about half over the last nine months.”
North Sea production has fallen by an average of 7.8 per cent each year since 1999, and Stewart says much of this can be blamed on a lack of investment in existing infrastructure. “Many fields are producing at 40 or 50 per cent uptime, because many owners are doing other things with their money.””
Read the full article at The Scotsman website.
Date Added: Sunday 22nd March 2015
