(c) Amulf Husmo | Getty Images
Hot on the heels of BBC Scotland’s gloomy warning headlined:
‘North Sea oil and gas exploration ‘at lowest level since 1970s’’
we see in Energy Voice today that US firm Apache has made a 10 million-barrel discovery in the Garten field 155 miles east of Aberdeen. Production will begin in 2019.
According to analysts Wood Mackenzie in Energy Voice:
‘Hot on the heels of Callater, Corona and Storr, that’s more than 85 million barrels discovered in the area since 2015.’
So, just from that one well, with crude trading at more than $60 per barrel that’s $600 million minus production costs of at most $150 million or $450 million to be shared between the shareholders, the staff and the treasury. At a 20% corporation tax rate that should be at least $90 million or £64 million.
Add this to the £75 billion we should be taxing the producers for the 11.7 billion barrels, by 2050, already predicted by Office for Budget Responsibility.
Not a huge increase but remember that’s just one field, one announcement.