- Higher Taxes: Labour plans to raise taxes on North Sea oil and gas producers. Specifically, they intend to increase the existing windfall taxes from the current 75% to 78%. This move aims to fund their ‘green prosperity plan’, which includes investments in renewables through a state-owned vehicle called Great British Energy.
- Ban on New Licenses: Labour has pledged not to award any new North Sea oil and gas licenses if they come into power. This policy directly impacts potential developments like the Buchan oilfield, which contains approximately 100 million barrels of oil and was scheduled to produce its first oil in 2026.
- Existing Licenses: Labour commits to honoring existing licenses granted before the next general election. However, they would not allow any new licenses for oil and gas exploration.
Labour Party government in the UK has promised to enact tougher taxes on North Sea oil and gas revenues and an end to new offshore licensing, which is prompting nervousness among producers. It comes at a time of falling oil output, rising energy security fears and concern that an… pic.twitter.com/e7v8y2UOuU
— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) July 9, 2024