Why you will pay more tax - North Sea oil production / tax "significantly lower" than Budget forecasts
This is a chart of the decline of production of oil (milions of barrels per day) from the UK North Sea Oil fields in ten years The UK is now a net importer of mineral oil and oil products.
If you want to become informed on the decline of indigenous UK energy resource pay regular visits to the Oil Drum. Informed, level headed comment on UK energy (in)security.
In the December pre - budget statement Gordon Brown had to cover a projected £3 billion shortfall in oil taxation receipts in 2007 and a further £4 billion in 2008-2010 As a result, Mr Brown will raise taxes by £2 billion each year from next year, and also borrow £2 billion a year more than he forecast in April's Budget. Scotsman Treasury Documents Table B12 Page 16 and notes Page 17 revenues decline as oil is sold in the declining US$) Quote ;
"the overall level of production is expected to be significantly lower than assumed in the Budget 2006 forecast reflecting the lower starting point and more modest increases expected by operators."Disappointing tax receipts from companies operating in the North Sea were the biggest single reason for the unexpected deterioration in the public finances. Major figures in the oil industry argue that the increases in taxation introduced by Mr Brown in 2005 have upset the economics of North Sea oil and gas, and could have a serious effect on production if oil prices fall.