High cost of raising taxes on drilling for oil

NORTH Sea oil production collapsed by a record 18 per cent last year – the biggest fall since black gold started flowing four decades ago – as the Chancellor’s controversial tax hike shook investor confidence.
The slump was caused mainly by a combination of platform shutdowns for essential maintenance on ageing installations and a low number of discoveries being brought on stream.
But prospecting for new oil and gas reserves was also hit by a 50 per cent reduction in exploration drilling as George Osborne’s oil tax-grab hit investment plans, according to the latest activity survey by Oil & Gas UK.
The pan-industry trade body’s report, published today, reveals that only a small number of large projects are continuing to drive UK offshore oil and gas investment in the short term.
If you want less of something tax it and that appears to have worked in the North Sea area off the UK.  Obama would like to repeat that fiasco by raising taxes on those engaged in taking risk to find the oil we need.


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