RE: “London’s Oil Party Week Is Back With Talk of a Coming Rally”27 Feb 2023 11:26
Price floor: ‘We’re delighted to say the Treasury have heard us’
Mr Whitehouse came in as CEO of OEUK at the start of the year, replacing Deirdre Michie who stood down after nearly a decade at the helm.
The trade body represents hundreds of companies – including 55 operating firms which produce oil and gas in the UK.
Having met with the Chancellor, and written to him last month as part of Budget submissions, a key ask has been the industry wants the “windfall tax to be a windfall tax” so a price floor is implemented to stop the levy, should oil and gas prices fall.
Mr Whitehouse says government action is now underway on that issue.
“When prices stabilize, we want that to go away. That’s been part of our request to government and what we also want is a conversation that sets up a long-term fiscal regime that we need for investment, not only in oil and gas but across the entire renewables renewable sector.
“We’re delighted to say the Treasury have heard us on that and that kind of longer-term fiscal review will be kicking off in the course of the next few weeks.”
An HM Treasury Spokesperson said:“The Energy Profits Levy strikes a balance between funding cost of living support while encouraging investment in order to bolster the UK’s energy security.
“We have been clear that we want to encourage reinvestment of the sector’s profits to support the economy, jobs, and our energy security, which is why the more investment a firm makes into the UK, the less tax they will pay.”
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