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From the article in Energy Voice about Hartshead Resources :
In the run up to a looming general election, with Labour leading the polls, Mr Lewis said fiscal uncertainty damages not just jobs and investment but receipts to the Treasury to fund public services.
“Jobs are really important. Labour should be about protecting jobs more than anything else, that’s where the Labour Party came from, protecting workers, came out of the trade union movement. This does not do that, what Labour are doing at the moment.
“It doesn’t protect jobs today, and it doesn’t protect jobs in the future because there will be companies that will not be able to survive the period between now and when we have full energy transition jobs in floating wind, CCS, and hydrogen.
“We need to preserve the supply chain and the skilled workforce today to have those available for tomorrow.
“That’s nothing to do with the difference between oil and gas. That’s just about solid industrial strategy.”
The industry has repeatedly pointed out that oil and gas giants’ profits – like Shell, BP or TotalEnergies – are driven by areas outside of the UK and are not made here, despite rhetoric to the contrary from politicians, NGOs and parts of the media.
Mr Lewis added: “When Labour came out and said we’re going to “close the loopholes that returned cash to oil and gas giants”, they were effectively damaging oil and gas minnows and mid cap companies, you know from Harbour and Serica all the way down to us. These aren’t oil and gas giants that they’re having a punitive impact on.
“And so I think the rhetoric is really unhelpful and I think there’s just no recognition of what oil and gas has brought to the UK in terms of, you know, jobs and industry, receipts to the Exchequer, energy security, and it would be nice to see a little bit more balance in the rhetoric.”
"The Labour Party announced on 8 February that they are dropping their pledge to spend £28bn per year on “green investment”.
As part of the briefings around this announcement, the following comments on the windfall tax were reported in the Press.
Labour will introduce a proper windfall tax on the excess profits of oil and gas companies, o we can invest in the clean power we need to cut bills for families.
Labour will fix the holes in the Energy Profits Levy by:
Increasing the rate to 78%, the same rate of tax as in Norway.
Ending the loopholes in the levy that funnel billions back to oil and gas giants.
Extend the sunset clause in the windfall tax until the end of the next parliament, provided there continue to be windfall profits.
Together, these changes would raise £10.8bn over the next five years from 2024-25 to help fund the Green Prosperity Plan.
This amount is based on current OBR forecasts. The amount raised will depend on outturn oil and gas prices and production levels, as well as the level of investment and the amount offset against taxation.
Of course, there is no guarantee that these measures will be introduced if Labour are elected this year.
The 78% rate is not new, but interestingly Labour has in the past said that the tax will be “backdated”, but this pledge was not part of the briefing."
https://cwenergy.co.uk/green-investment-pledge/
I wonder if this is connected to the Telegraph story? One of the main suspects must be Viaro who own RockRose. Of course Labour may just ignore the story. Be interesting to see if the Telegraph pick it up.
"On February 8, as part of its Green Prosperity Plan, Labour pledged a “proper windfall tax” on the industry, extending the existing levy and removing investment allowances currently in place.
Industry experts have warned that would quash any new investment in the sector and see tens of thousands of job cuts."
In Iran we trust....the straights of Hormuz, all those lovely loaded oil tankers, just a few miles off shore.
Another tax disaster in the North Sea.
https://www.energyvoice.com/oilandgas/north-sea/551900/windfall-tax-job-cuts-north-sea-hartshead-resources-2/?utm_content=182331334&utm_medium=social&utm_source=twitter&hss_channel=tw-1379070162
Https://www.bbc.co.uk/news/uk-scotland-68841141
Nice picture of NIcola and Greta together with a Ugandan climate activists.
Amazing the number of activists on the spectrum (Greta , Chris Packham and don't tell me that Nicola and Roger Hallam are normal). Some of the regular activists would also struggle with a psychological assessment.
*Just think of the tragedy of teaching children not to doubt. -Clarence Darrow, lawyer and author (18 Apr 1857-1938)
"Brigitte Amoruso at Make UK, the trade body for UK manufacturers, said: “Although the UK was at the forefront of wind technology innovation, the Government failed to keep the supply chain within the UK for wind turbines and solar panels.
“As a result, these aspects were outsourced to competing nations such as China and Canada. This is a long standing issue for the UK which must be addressed."
Solved at a stroke by Ed. Just mask subsidies through a public company shortly to be formed. I'd say that we gave been prescient in staying out of the race. We cannot compete with China and the only company that once competed with them actually offshores to China and other countries. That company is Vestas based in Denmark. Denmark has a reputation for glossy expensive to die for designs and technology (Bang & Olufsen) but the bottom line and cheaper manufacturers is a cruel mistress. Private investment isn't attracted to businesses that are fundamentally flawed on a cost basis but will invest if guaranteed subsidies compensate.
https://www.statista.com/statistics/262350/largest-wind-turbine-manufacturers-worldwide-by-capacity/
*Vestas lost $1.2 bn 2022 and made a profit of $249m last year. But Ed knows how to do it better.
Redb
I have Enquest FCF break even at $75 oil for 2024 and $65 for 2025. This excludes proceeds from asset sales and working capital movements.
It is anyone’s guess where oil goes in the short term (next 6-12 months). It could go higher if conflict escalates or lower if we start to see global recession as interest rate hikes start to really bite.
Sorry I was being facetious. Posters are keen to model on year highs of Brent prices within hours of them being hit but not so much in the other direction. ENQ are healthy at $80/bbl and I don't think it is prudent to model any higher than that.
Britain is incapable of building the wind farms, solar farms and transmission networks essential to net zero, a government report has warned.
A shortage of ships, steel and concrete in the quantities needed to build new infrastructure casts doubt over government targets to decarbonise the energy system, according to a study by management consultancy Baringa.
The problem is compounded by a shortage of skilled workers who can install the new structures.
https://www.telegraph.co.uk/business/2024/04/17/britains-shift-net-zero-threatened-shortages/
I have oil at 87 now more or less?
Just wondering where everyone is asking for forecasts of FCF with oil at $75 now?
The Yanks are like lemmings, they’ve seen their beloved Nvidia go negative so that’s triggered a fall in Tech stocks and others just follow, with some commentators calling a correction on the way…not a concern for those with a stronger stomach !
Oil prices went up quick and the market was waiting for a trigger to correct it. US build but product draw so I’d imagine nothing changed and oil prices will soon bounce back
Why would that bring off the US composite markets? They're also dropping.
The Markets decided to dismiss the Israel/Iran conflict as getting any worse, but a stray missile will soon correct that.
Is it the gulf coast crude stockpiles?
https://screenrec.com/share/9m1vnZIwyV
Brent currently 86.8. Anyone know what the shock was?
SEK
I should have added that an acquirer would prefer an asset deal and if they are paying corporate tax and EPL, they will get to reduce their tax bill by 91% of the purchase price while Enquest will only pay 35% EPL on the purchase price.
Accordingly we might be in another situation similar to Bressay whereby a buyer pays say $200m for GE and its total tax bill is reduced by $182m resulting in a net cost of $18m and Enquest receives $200m less $70m EPL (payable in Oct 25). This could be another opportunity to exploit the difference between EPL payable on asset sales and the super allowance available to acquirers, together with using Enquest tax losses.
Could be wrong but just s thought.
The press have probably got it completely wrong and we are actually buying the the other 73%
SEK
It all depends on the sale structure. If the GE asset sits in a separate legal entity and Enquest sells the shares of the legal entity there will be no EPL payable and potential a capital loss on sale of the shares. This loss will not be offsetable against EPL.
If we sell the actual field as an asset deal (as opposed to the shares of the company owning the field) there will be an EPL bill of 35% of the proceeds payable in October 25 (similar to Bresssay). The reason being that Enquest would have taken a tax deduction on acquiring the field which would have added to the tax losses and resulted in a zero cost base.
I have no idea whether GE was acquired into a separate legal entity or into the main Enquest trading entity.
As Kraken notes, we have to trust management to structure any deal in the best interests of Enquest. That is if there is an intent to sell GE and it could all be another press misunderstanding.
Market makers create the market, need stock to facilitate that process.
Those small trades are an enigma....
Stumpy the MM whoever it is can hold as much or as little of the stock as they wish. Their job is to make money from each trade and profit on the stock