OilOnline.com: Union Calls on Tax for Oil Operators: “The global focus of the four main operators (Shell, BP, Total and ExxonMobil) who own 50% of North Sea reserves means new drilling is taking place in other parts of the world instead of Scotland. The large operators, however, continue to hold the drilling rights which prevents new smaller operators from investing in exploration.” (ShellNews.net)
By: OilOnline
Posted 20 October 20, 2004
Oil companies operating in the North Sea are being accused today of deliberately damaging the Scottish economy by blocking new oil exploration.
Trade union Amicus will use a conference in Glasgow on Tuesday, October 19th, to launch an extensive report which calls on the treasury to slap an 'inactivity tax' on any company who owns drilling rights to parts of the North Sea who does not extract oil.
The global focus of the four main operators (Shell, BP, Total and ExxonMobil) who own 50% of North Sea reserves means new drilling is taking place in other parts of the world instead of Scotland. The large operators, however, continue to hold the drilling rights which prevents new smaller operators from investing in exploration.
Amicus believes that at a time when the cost of a barrel of oil has risen from $25 to $54 companies should be investing in the long term future of North Sea oil exploration and production rather than presiding over a slow down which as seen 1,500 jobs lost over the last 18 months.
Industry research has shown that there are and estimated 31bn barrels of oil remaining in the North Sea area which means we have only just reached the half life stage of oil production. ExxonMobil made GBP405 profit per second for the second quarter of this year.
Amicus is beginning a series of meetings with industry and the treasury to discuss a number of possible plans including: the introduction of a new 'inactivity' tax based on acreage owned by operators, an increase the Petroleum Revenue Tax (PRT) on super-profits from UK oil and gas production and an increase in the 10% supplementary charge to improve uptake on first year capital allowance.
http://www.oilonline.com/news/headlines/internet/20041019.Union_Ca.16151.asp