In a press release posted on its web site, business physique Offshore Energies UK (OEUK) urged the UK Chancellor of the Exchequer to make use of the approaching Autumn Assertion “to again the UK’s homegrown offshore vitality sector and make the UK an irresistible place for vitality funding”.
The assertion described North Sea oil and gasoline as a strategic financial asset that has supplied a nationwide dividend by means of vitality and financial safety for the final 60 years. It added that the North Sea and its knowledgeable workforce can proceed to energy the nation for many years to come back.
“We acknowledge that the calls for on the Exchequer are difficult,” OEUK CEO David Whitehouse stated within the assertion.
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“Unlocking financial progress is the answer, and constructing on industrial strengths is essential to our path ahead,” he added.
Whitehouse famous within the assertion that the North Sea is a strategic nationwide asset and should be handled as such.
“Our homegrown offshore vitality sector has powered the UK for the previous 60 years, and the sector’s corporations and expert individuals are important to our vitality future as drivers of financial progress,” he stated.
“We welcome steps to speed up the deployment of renewable vitality, and the popularity that we’ll use oil and gasoline for many years to come back,” he added.
“Windfall taxes prolonged on oil and gasoline producers when no windfall exists deter the very funding that we’d like throughout our vitality transition. Whereas we use oil and gasoline, we should absolutely prioritize funding in our homegrown manufacturing, worth in our economic system, and our jobs,” he continued.
“Up to now 100 days, it has been good to see the engagement of our new authorities with the proud and modern employees and corporations in our offshore vitality business. The federal government has heard from individuals throughout the sector, and now selections shall be made,” Whitehouse went on to state.
The OEUK CEO stated the Autumn Assertion shall be a marker.
“We’re in a world race for vitality funding. Allow us to select the trail that encourages and attracts it, to construct on our nationwide strengths, so the entire of the UK can win,” he added.
OEUK’s assertion additionally highlighted evaluation by the group on the Vitality Earnings Levy (EPL) revealed final month.
In a launch despatched to Rigzone in September, OEUK introduced that it had launched knowledge “which fashions the affect of the federal government’s introduced stronger Vitality Earnings Levy on the UK economic system”.
The modeling reveals that the federal government’s proposed fiscal coverage would generate a loss in financial worth of round GBP 13 billion ($17.0 billion) in comparison with the financial contribution generated beneath the present windfall tax regime, OEUK famous within the launch, highlighting that it has already proven the figures to HMT.
Rigzone beforehand contacted HMT and the UK Division for Vitality Safety and Internet Zero (DESNZ) for touch upon that OEUK launch.
In response, an HMT spokesperson advised Rigzone, “we’re dedicated to sustaining a constructive dialogue with the oil and gasoline sector to finalize modifications to strengthen the windfall tax, making certain a phased and accountable transition for the North Sea”.
“Our plans for a brand new Nationwide Wealth Fund and Nice British Vitality will create 1000’s of recent jobs within the industries of the longer term,” the spokesperson added.
DESNZ didn’t reply to that Rigzone request.
OEUK’s newest assertion additionally highlighted a current letter from 46 provide chain firms to the federal government.
In a press release posted on its web site again in August, OEUK famous that, in an open letter, greater than 40 organizations stated the confirmed three p.c enhance to the EPL to take the headline charge to 78 p.c, extension to 2030, and the elimination of the funding allowance and a discount in capital allowances dangers 1000’s of jobs, and the businesses important to the UK authorities’s industrial technique, and progress in the direction of its web zero targets.
Rigzone contacted HMT and DESNZ for touch upon OEUK’s newest assertion and the assertion posted on OEUK’s web site in August.
In response, an HMT spokesperson advised Rigzone, “we’re making the UK a clear vitality superpower with GBP 24 billion ($31.1 billion) raised for inexperienced industries at this month’s funding summit, and it’s proper that the oil and gasoline sector contributes to this transition by serving to to fund Nice British Vitality”.
“We’re working carefully with the business to make sure a secure funding surroundings whereas creating a successor regime to the momentary Vitality Earnings Levy, serving to to safe the sector’s position within the UK’s vitality combine,” the spokesperson added.
On the time of writing, DESNZ has not but responded to Rigzone’s newest request.
The UK parliament web site states that the Chancellor of the Exchequer will current her 2024 Autumn Finances to Parliament on October 30. As soon as the Chancellor finishes her assertion, the Workplace for Finances Accountability (OBR) will publish up to date forecasts in its financial and financial outlook, the positioning provides.
The price range is a press release made by the Chancellor to MPs within the Home of Commons, presenting the federal government’s plans for the economic system, together with modifications to taxation and spending, the UK Parliament web site highlights.
Rachel Reeves was appointed Chancellor of the Exchequer on July 5, 2024, the UK authorities web site reveals.
To contact the creator, e-mail andreas.exarheas@rigzone.com
