UK taxes from North Sea oil and gas rise by more than 400% as crude price doubles since 2014 collapse

Revenues from North Sea oil and gas increased by £1.434 billion in 2017-18 – up more than 440% – a new UK government report has confirmed.

The Statistics of Government Revenues from UK Oil and Gas Production show UK government oil and gas revenues climbed to £1,188 million in 2017-18, up from £316 million in 2016-17.

And net corporation tax revenues increased by 420% from £338 million to £1,757 million as a result of the recovery in Brent crude oil prices, which have climbed from around $30-barrel four years ago to more than $70-barrel this year.

Oil prices rose strongly last week, with the US crude contract hitting its highest in 3½ years at $74.46-barrel.

As a result, the SNP has called on the UK government to use the Budget to deliver meaningful support for the industry’s continued recovery – more than 90% of the North Sea’s oil wealth is held in Scottish waters.

Kirsty Blackman MP, SNP Westminster Deputy Leader and Economy spokesman called for all revenues to be retained in Scotland and invested here.

She said: “This welcome boost to revenue from North Sea oil and gas is good news for the industry, jobs, and the economy.

“It highlights the promising future the industry has, and it shows just how vital it is for the UK government to use the Budget to deliver meaningful support for continued recovery.

“With up to 20 billion barrels of oil still to be recovered from the North Sea, the UK government must use its reserved powers to stimulate exploration and investment, and ensure our oil and gas sector can capitalise on a decommissioning market that is forecast to reach £17 billion.

“The UK government broke its promises on support after the crash – it must now ensure adequate investment for the industry and Aberdeen’s local economy.”

3 Jul 2018

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