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Oil exploration firms warn of ‘complete collapse’ of operations in the North Sea

December 1, 2022

By Paul Homewood

 

From GB News ;

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BRINDEX, which represents the firms, has written to Chancellor Jeremy Hunt to warn that their members face ruin

North Sea oil exploration firms have told the Treasury that they face going out of business due to the 75% windfall tax imposed on them in the Chancellor’s autumn statement.

GB News economics and business editor Liam Halligan revealed that BRINDEX, which represents the firms, has written to Chancellor Jeremy Hunt to warn that their members face ruin.

North Sea oil exploration firms have told the Treasury that they face going out of business due to the 75% windfall tax imposed on them in the Chancellor’s autumn statement. Andrew Milligan

“These aren’t the big oil majors like Shell and BP,” Liam revealed on GB News on Tuesday afternoon.

“These are the smaller British companies that work the North Sea for oil and gas and may in fact account for about 60 or 70% of the gas and oil that is extracted from the North Sea.

“They are hugely important, they go for the smaller wells that are more difficult, and for them their whole business is the North Sea, so this energy profits levy, which is coming to the House of Commons tomorrow for a second reading, is absolutely key.

“So they’ve written to the chancellor, and said that this latest tax rise to 75% poses an existential threat to the industry, and within that jobs and our nation’s energy security.”

https://www.gbnews.uk/news/oil-exploration-firms-warn-of-complete-collapse-of-operations-in-the-north-sea/398281?mc_cid=0f00695edd&mc_eid=4961da7cb1

Liam Halligan misses the point. The shut down of North Sea oil and gas has always been the goal of successive governments’ energy strategy.

15 Comments
  1. Realist permalink
    December 1, 2022 5:27 pm

    What is really disgraceful is the tax element of the actual price of petrol and diesel at the pump. It is governments that are the real villains.

  2. HotScot permalink
    December 1, 2022 5:40 pm

    I have just sent the latest GWPF report written by Francis Menton, of Manhattan Contrarian, to my MP with a politely worded note (just a note, no discussion) with Francis’ description of himself, and a few words mentioning that the report is simply about the challenges faced by developing nations to implement energy storage.

    My MP (Gareth Jonson, Dartford) refuses to correspond with me on climate change so I thought, being that he’s a lawyer, Francis’ position as a partner at an international law firm and his mathematics qualifications might persuade Gareth to actually read something and take it seriously rather than sending it upstairs to HQ for a minion to respond to.

    I won’t hear anything back from him as he’s a nonentity MP despite Dartford being a bellweather constituency. If it flips to Labour we are all forked.

    I suggest others send the report to their own MP following the same format, no discussion in your email as the point is to get them to read the report, not read what you think.

    Don’t send it in *.pdf format as these are frequently rejected as a security risk, instead, download it and convert to a Word document. I suggest using https://convertpdftoword.com as its straightforward, free, quick and asks for no sign up details. Reproduction is also faithful.

    Francis’ report can be found here: https://www.thegwpf.org/content/uploads/2022/11/Menton-Energy-Storage-Conundrum.pdf?mc_cid=80a8bdfb6a&mc_eid=5f2cfb8234

  3. catweazle666 permalink
    December 1, 2022 6:32 pm

    No surprise there.

    Vote Reform!

    • HotScot permalink
      December 1, 2022 10:53 pm

      Frankly, vote whoever you want right now, it makes no difference whatsoever.

      We are on a slide to NetZero, so accept it.

      The results will be economically catastrophic and NetZero will hit a brick wall very soon.

      The sooner the better to be honest. The politicians won’t stop spending our money until they are stopped and non of us are willing to stop their spending by means other than the ballot box. So let the chips fall where they will.

      All we have left is ‘I told you so’ but they will ignore that in their endeavours to build their ivory towers in our children’s time.

      Eventually, however, those towers will crumble.

      • catweazle666 permalink
        December 2, 2022 12:10 am

        I think Net Zero is already on the skids actually.
        If this winter is as cold as I expect it to be, the backlash will be vicious.

      • Ben Vorlich permalink
        December 2, 2022 12:02 pm

        @Cat, that depends very much on the public still buying the greedy energy companies and fat cat bosses storyline, if they do then politicians will survive.

      • Realist permalink
        December 2, 2022 7:53 pm

        It is scary how many people seem to forget about the extortionate level of tax at point of sale for petrol and diesel and still blame oil companies for high prices
        >>public still buying the greedy energy companies

  4. December 1, 2022 6:51 pm

    And the renewables cabal will soon discover that the extraordinarily higfh cost of energy now will make production of their prayer wheels and moonbeam catchers too expensive, as VW have already found for European based battery production.

  5. December 1, 2022 10:51 pm

    No point in being in any business when the Government takes all the profits. The more profits in the best of times covers the costs in the worst of times, no point in being in any business when the Government takes all the profits in the best of times unless the Government promises to cover the losses in the worst of times.

    • Ben Vorlich permalink
      December 2, 2022 12:04 pm

      Joseph’s seven good years followed by seven bad years. Not taught anymore in an inclusive Britain

  6. December 1, 2022 10:58 pm

    And, the Government has already promised the worst of the worst of times is coming for fossil fuels, they are going to go to Net Zero, much, much faster than anyone could ever make it work.

  7. December 1, 2022 11:09 pm

    I would like to see the plan for when net zero is in place, how to protect wind and solar fields and offshore wind and the huge complicated grid that connects it all together.
    If someone can blow up a pipeline that supplies Natural Gas from Russia to Europe, and it is not even known for sure who did it, the UK will have almost no energy coming from close enough to protect the electric lines or pipelines or even large battery farms or grid, not from domestic or foreign enemies or even hackers.

  8. December 1, 2022 11:28 pm

    Anyone with a truckload or a boatload or an airplane load of Iranian Drones will be able to easily destroy multiple wind or solar farms or electric transmission lines or grid hubs. Regional fossil fuel and nuclear power and local grids that can operate independently could better be protected and the whole country would not go down with one grid. In February of 2021, the whole state of Texas had massive outages due to just a few freezing days. One of several of our minor enemies could cause a much worse outage than that, that could take weeks, or months or even years to recover from. To replace much of all this if destruction happens, we depend on China and they might not want to help.
    Actually with all the enemies inside and outside our countries, it is a matter of when someone attacks our grids and power generation, not a matter of if.

  9. December 2, 2022 11:42 am

    This is an area where Nut Job Zero will cause major damage since unlike onshore fracked gas wells, you can’t just shut down and come back later when the insanity has ended. If these assets are shut down they are unlikely to reopen.

  10. eastdevonoldie permalink
    December 2, 2022 1:43 pm

    Forcing these companies out of business is exactly what The Govt and their key Net Zero policy supporters Just Stop Oil want

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