From Bloomberg in Energy Voice today:
‘Brent for April settlement climbed 26 cents to trade at $64.59 in the London-based ICE Futures Europe exchange.’
On 6th February 2018, I was able to write:
‘North Sea oil tax haul gushes to £1bn as crude recovers. Higher prices, increased production and lower costs drive revenue turn-round’
Pretty much ignored by the Scottish media other than reporting on BP profits, the Financial Times, free from a constant obsession with Scottish independence offers us useful evidence. They had more to say:
‘A £1bn boost to the Treasury will be good news for the Philip Hammond, the chancellor, who will give an update on the government’s budget in the spring statement in mid-March. HMRC declined to comment…. Production in the North Sea is also bucking the recent decline. Wood Mackenzie, the energy consultancy, expects it to average 1.9 million barrels of oil equivalent a day in 2018, its highest since 2010. BP last week announced two new discoveries in the North Sea and reiterated its ambition to double production from the region to 200,000 barrels a day by 2020….’
Add to the above 1.9 million barrels anticipated from the North Sea, the oil from the new fields West of Shetland and we can expect well over 2 million barrels per day or 730 million per year. So, total revenue (730 000 000 x 65) for the producers could be at least $47 billion. With production costs nearing $12 per barrel according to the BP CE, profits of around $40 billion per year can surely generate tax revenue of several billion.
I look forward to the chancellor’s statement.