The British North Sea produced just under 1.4 million barrels of oil equivalent per day (boed) last year, down from a peak of around 4.4 million boed in 1999. "When we talk about investment in the UK oil and gas resources, it's not about exponential growth, it's about managed decline," Dornan said. Britain, a net energy importer since 2004 whose energy mix last year was made up of 76% oil and gas, will likely produce 500 million barrels less hydrocarbons - "enough to support the nation for six months or (the) same as one year’s North Sea output" - due to investment cuts, according to the OEUK. The report came as Britain's government is set to announce energy security measures on Thursday, according to industry sources, which could see changes to taxes and investment incentives for the offshore industry. Any fresh incentives for oil producers are likely to be decried by climate activists, not least since Britain experienced an oil leak over the weekend at Anglo-French oil company Wytch Farm's onshore field in Dorset. Britain's biggest oil and gas producer, Harbour , has announced job cuts and shunned the latest licensing round. TotalEnergies cut its UK investment programme by a quarter. Development of what would be the world’s largest wind farm off the coast of Britain is in doubt, with Orsted saying it needs more support to proceed with the project. ($1 = 0.8166 pounds) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Britain's biggest oil and gas producers Britain's biggest oil and gas producers UK government revenue from oil and gas sector UK government revenue from oil and gas sector Britain's oil and gas production ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Shadia Nasralla; Editing by Sharon Singleton)
Reuters Messaging: shadia.nasralla.reuters.com@reuters.net)) LONDON, March 28 (Reuters) - Windfall taxes mean oil and
gas producers in the British North Sea will likely leave 500
million barrels of oil equivalent in the ground over the next
decade, the equivalent of one year's output in the ageing basin,
industry group OEUK said on Tuesday.
Over the past year, Britain has introduced windfall taxes on
oil and gas as well as on renewables, which companies say
stifles investment and in turn will likely increase Britain's
dependence on imported fuels and derail its climate targets.
In the oil and gas sector, the taxes are likely to result in
reduced investment of between 3 billion to 5 billion pounds
($3.67 billion to $6.12 billion) over the next decade or so,
Offshore Energies UK (OEUK) market intelligence manager Ross
Dornan told reporters.
This reduction in investment is expected despite a tax
incentive of around 91 pence per pound spent on new hydrocarbon
production, which renewables producers are also calling for in
their sector.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.