Member Info for Dumbly

2b, I agree about the Windfall Tax/EPL and maybe you were talking in general, but as Tullow's production is all outside of the UK then the EPL is not a factor. Taxation is applied in the country of production. Or, am I missing something?

Https://www.agcc.co.uk/news-article/chancellor-looking-to-end-energy-profits-levy-three-years-early

That’s sort of the point, go, if things are left as they are for short versus long-term gain, then Labour will be cynically putting party and ideology ahead of the country and security. Never a good look.

Leaving aside the economic benefits and jobs which would be saved/created by removing the EPL, the overriding imperative now is security of supply, especially of gas. Not encouraging the recovery of offshore gas is reckless and jeopardises National Security. This all said, I agree it’s unlikely there will be changes today to the a EPL.

Considering current circumstances, implementing a tax regime to replace a temporary regime to permanently capture windfall prices/profits could easily be explained as something positive in terms of protecting the public against the greedy oil and gas companies.

OPEC+ has agreed to a modest increase in oil output, raising production by 206,000 barrels per day (bpd) starting in April.

Frac, an earlier introduction of the new mechanism, the OGPM, would be an excellent outcome.

2 buys of total £520,000 are shown at 15:11.

Https://news.sky.com/story/uk-government-staff-have-been-withdrawn-from-iran-13512938

The EPL taxes non existent windfalls and the Treasury to change it seeks assurances from companies that the result will be investment and job creation in an activity DESNZ states is geologically finished and is using regulating to shut down. An absurdity.

Using central command with disjointed policy and expecting to use other people’s money in an industry with great uncertainty of outcome and lead times and financial decisions made diligently over years, demonstrates naive ignorance.

Labour does not know what it wants and does not know how to achieve it. An absurdity supported by incompetence.

Will the Treasury compromise and accept government needs to set the framework and let the market do its thing? Will Miliband allow this, and ideally support it through complimentary and enabling policies? And, now, the impact of the by-election result? We will know soon.

(Harriet… on 23/2 Brent, the relevant oil price in this matter, was $72 not £66)

Good letter. And Labour could easily spin this not as scrapping the EPL, a TEMPORARY windfall tax, but as replacing it with a PERMANENT fiscal regime for capturing excessive/windfall profits.

23/2/26 letter to the Chancellor again requesting the EPL be scrapped (as part of next week’s Spring Statement.

https://x.com/harrietcross_mp/status/2025984329533259795?s=46&t=3icqiBhgmGSnUo8L1GVnng

https://x.com/harrietcross_mp/status/2025984332666429902?s=46&t=3icqiBhgmGSnUo8L1GVnng

See especially the section "Windfall tax is harming independent North Sea producers, not oil majors", on page 66+ with pages 71, 75, 90 referring to EnQuest.

Https://iea.org.uk/publications/just-stop-oil/

See Page 66+ "Windfall tax is harming independent North Sea producers, not oil majors" for extensive references to Harbour.

Ms [Kathryn] Porter [the report's author] said: "Oil and gas producers are not the enemy - they produce goods used by all of us every day. The windfall tax was supposed to target Shell and BP but instead it has hammered independents, driven investment overseas and vastly accelerated the decline of important tax receipts."

And what is DESNZ's response... The stock one: "A DESNZ spokesperson dismissed the report saying: "Issuing new licences to explore new fields will not take a penny off bills, cannot make us energy secure, and will only accelerate the worsening climate crisis. We're giving the sector and its investors the long-term certainty to invest and support jobs through our plan for the North Sea and by replacing the Energy Profits Levy when it ends by 2030, or earlier if its price floor is triggered."

Https://iea.org.uk/publications/just-stop-oil/

Ms [Kathryn] Porter [the report's author] said: "Oil and gas producers are not the enemy - they produce goods used by all of us every day. The windfall tax was supposed to target Shell and BP but instead it has hammered independents, driven investment overseas and vastly accelerated the decline of important tax receipts.

And what is DESNZ's response... The stock one: "A DESNZ spokesperson dismissed the report saying: "Issuing new licences to explore new fields will not take a penny off bills, cannot make us energy secure, and will only accelerate the worsening climate crisis. We're giving the sector and its investors the long-term certainty to invest and support jobs through our plan for the North Sea and by replacing the Energy Profits Levy when it ends by 2030, or earlier if its price floor is triggered."

Rax, all production in the UKCS is through UK registered companies, so in terms of UK tax treatment does anything change if the ultimate owner is a foreign company or not?

Oxy, my initial reaction was it can’t be “just” a re-base/rate as you suggest. However, you could well be right as the increase has been happening for a month or so even if accelerating in the last week and even more in the last day. We should find out soon enough, and it would probably be better if it’s as you suspect, as this way a deal announcement should build on this higher re-based SP.

However, and unfortunately…

And the winner from all this is … Ed Miliband

https://www.thetimes.com/article/e6971a78-d1b7-4d9e-9a7c-a0c1fd884d8f?shareToken=1a7d5642ef1be25f7599196685edc301

In a move that will infuriate Ed Miliband…

Tony Blair calls on Labour to keep drilling for oil in North Sea

https://www.thetimes.com/article/f8afb492-7c80-48a9-b996-66a15f360825?shareToken=9d0a1cfc66fb6a630f20923f56107e73