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The UK could produce half of the projected demand for oil and gas domestic under “real business conditions”, reducing increased confidence in greater carbon imports, the industry said.
Offshore Energy UK has said the country is well on its way to producing 4 billion barrels of oil and gas equivalent to the 13 billion billion forecast for use by the Independent Climate Change Committee, in line with the 2050 net zero emission.
But the North Sea could produce more barrels of 2 billion 3 billion if companies were encouraged to invest, adding £ 150 billion in economic value during £ 200 billion expected according to the ongoing plans.
The UEK’s forecast, published in its annual business appearance on Tuesday, sets the case of industry to prioritize self -sufficiency in dependence on imports as the UK government Consultation of future fiscal, regulatory and environmental regimes for the North Sea.
“Britain needs oil and gas – and we need to be focused on producing as much as ourselves,” said David Whitehouse, chief executive of the UEK. “Woulde are looking for new projects to meet that goal, but most of them will come from existing licensed areas.”
The UUK wants urgent reduction in windmills to reflect lower prices and encourage investments in expensive North Sea drilling operations, one person was acquainted with body thinking.
Since 2030, Sector of oil and gas will return to payment only permanent taxes, currently set to approximately 40 %but automatically contribute more If the prices have risen to an unusual level.
The profit tax on oil and gas was introduced in 2022 in response to increased energy prices after Russia’s invasion of Ukraine.
Last year, the government raised tax to 38 %, but entitled taxes for producers to 78 % by 2030, at the same time removing the main investment supplement.
“When the prices of the unexpected fall, so do taxes,” the person said, noting that energy prices had fallen to the level before the invasion.
The government, recognizing earlier changes in fiscal oil and gas regime, hopes to give investors greater security for future taxes.
The report highlights “historical low return rates” minus 1 percent for the year by June 2024, due to lower prices and production, along with high taxation.
The UUK also urged the government to “eliminate” the import of liquid natural gas from the UK consumption mixture with the support of more domestic production.
About 17 % of gas imports in the UK were obtained last year from the US LNG, which has a carbon intensity four times more than domestic gas.
The government has said it will not allow new oil and gas licenses, but will consider additional production around existing facilities. However, new licenses will be needed to increase the production of full potential, the person added.
Tessa Khan, CEO of UPIRT, an organization that supports the phase outside of fossil fuels, has accused the oil and gas industry of “fantasy peding”.
“These production figures are only possible if the industry is given even more tax breaks, or prices are so high that they punish ordinary people who can no longer afford their energy accounts,” she said.
New home production “will lock us in an outdated, expensive source of energy much longer than needed,” she added.
Rachel Reeves, Chancellor, told the Sun on Sunday that the development of Rosebank and Jackdaw Oil and gas fields will advance, despite environmental legal challenges.
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