Member Info for Kokomo

O&G Exploration, Development, and Production is a very very high risk/cost business, hence, why would anyone/company with half a brain invest here in the NS and take all relating risks/costs while this now nonsensical crazy tax regime and costs (not forgetting NS decommissioning, Environmental, HSE, Net Zero……..etc.) are in place so that then the UK government can take any potential profits for nothing/personal political agendas; “Energy Security” in the UK has become a meaningless political slogan at a time when it should have become a top priority, DYOR!

No share buybacks here today??

Bloomberg

UK North Sea Output to Be Hit by Windfall Tax, EnQuest CEO Says

Company blames first-half loss on changes to tax regime

Oil and gas industry will ‘undoubtedly decline,’ Bseisu says

The UK’s North Sea windfall tax is curbing spending in the region, inevitably leading to less oil and gas being produced, according to EnQuest Plc.

“If we don’t continue investing in the sector, the sector will undoubtedly decline,” Amjad Bseisu, chief executive officer of the North Sea-focused explorer, said in an interview on Tuesday. The increased tax rate in what was already a high-cost basin “is clearly a challenge,” he said.

https://www.bloomberg.com/news/articles/2023-09-05/uk-north-sea-output-to-be-hit-by-windfall-tax-enquest-ceo-says?leadSource=uverify%20wall

Harbour Energy Seen as Performing Well Operationally

1307 GMT - Harbour Energy's operational performance continues to be good despite political hurdles, Jefferies analysts Mark Wilson and Ruben Dewa write in a research note. "We recognize a longer-term strategy at play which balances payout benefits against industry cyclicality and ultimately aims to deliver a portfolio with longer-term growth from both organic and inorganic opportunities," they say. Following the oil-and-gas company's 1H results last month, Jefferies has reduced its full-year production forecast by 2% to 190,100 oil-equivalent barrels a day amid delays and deferrals of drilling at partner-operated hubs, the analysts say.

https://www.marketscreener.com/amp/business-leaders/Howard-Davies-5507/news/Harbour-Energy-Seen-as-Performing-Well-Operationally--44784496/

Https://www.cityam.com/enquest-urges-government-to-restore-investor-confidence-in-uk-oil-and-gas-after-76m-windfall-tax-hit/

LEXOLOGY:

“The oil and gas production landscape has changed dramatically since production began. Easy-to-recover fields are declining, meaning that future exploitation will be from more technically challenging fields that carry greater risks and costs. Old oil fields are also being decommissioned, which is necessary in order to leave them in an environmentally safe condition. The demographic of the industry has also changed: it is now dominated by private equity groups and foreign-state owned oil companies, which have replaced international oil and gas companies. These operators tend only to have upstream operations in the UK. In the long term, oil and gas activities will start to wind down as we approach the 2050 net zero target, although they are unlikely to halt completely.

The government recognises this shift in the sector and notes the fiscal regime may have to change to remain fit for purpose. This is a call for evidence in the real sense: the government is not consulting on any specific proposals and at this stage is simply trying to gain a better understanding of the future of the industry from those on the ground and their advisors. The call for evidence does, however, set out the government’s high-level aims in seeking to reform the current system, which include:

Supporting energy security while the UK transitions to net zero;

Promoting a pathway to net zero by supporting the decarbonisation of upstream oil and gas production;

Minimising barriers to investment in greener technologies in the sector;

Ensuring efficiency and predictability in the taxation of oil and gas activities, including by simplifying the legislation.

What evidence is being sought?

HM Treasury is seeking views on the current context and future evolution of the oil and gas industry, which will inform its proposals for amending the tax code. The information being sought includes the following:

Evolution of the market – How will investment into UK projects evolve over the coming decades, including compared with investments in other mature basins?

Investment in the UK market – How has the fiscal regime influenced investment in the UKCS? In particular, how have capital allowances and reliefs influenced such investment and are any changes necessary or desirable?

Energy security – How will investment opportunities contribute to UK energy security in the future? Should the fiscal regime include a mechanism for dealing with future price shocks?

Decarbonisation – What are the main obstacles to decarbonisation in oil and gas production and to what extent does the fiscal regime have an impact?

Simplification – Which aspects of the oil and gas fiscal regime could be simplified?

The call for evidence closes on 11 September 2023. Once the government has considered the responses and formulated its proposed reforms, it will most likely publish a formal consultation. The outcome will have a significant impact on producers and other oil and gas opera

Https://www.reuters.com/business/energy/chevron-australia-lng-workers-reject-company-offer-industrial-action-still-track-2023-09-01/

Https://www.forbes.com/sites/investor/2023/08/29/oil-is-going-to-300-a-barrel/?sh=1d7a0f522a2c

Https://www.reuters.com/business/energy/chevron-australia-lng-workers-reject-company-offer-industrial-action-still-track-2023-09-01/

Https://www.reuters.com/business/energy/chevron-australia-lng-workers-reject-company-offer-industrial-action-still-track-2023-09-01/

Again IMHO, HBR can do lot better by simply buying back its own shares at current significant discount to fair value here while awaiting an opportune investment circumstance either within its own portfolio or elsewhere.

At present, HBR can do lot better here by simply buying back its own shares at current significant discount to fair value IMHO.

Most Scots in favour of new oil and gas, survey finds

Less than a quarter of Scots believe new oil and gas licenses awarded by the UK Government are the wrong decision, according to a new survey.

The True North poll also finds that three out of every five people aren't convinced that the controversial Energy Profits Levy (EPL) - which taxes profits from oil and gas companies at 75% - was helping to reduce household bills or driving energy firms towards renewable technologies.

Three-quarters of Scots favour domestic production of oil and gas, with less than 14% considering domestic production to be a negative influence.

Public 'squarely behind' new licenses

Commenting, True North Managing Partner Fergus Mutch said:" In a series of polls commissioned by True North over the past year, we’ve looked closely how the UK’s energy sector is perceived by the public at large and whether this tallies with government policy.

“Overall, the Scottish public considers the energy sector an economic force for good. They want North Sea reserves used while we still need oil and gas as part of the mix as we transition to greener sources of energy.

“By utilising those resources at hand we can ensure that the jobs and economic benefits are realised here in the UK, and avoid the cliff-edge scenario of investment and critical skills being lost to overseas.

“The recent announcement of new oil and gas licences gives industry greater clarity and grounds for confidence — and our poll puts public opinion in Scotland squarely behind such an approach.

“Nobody is in any doubt about the scale of the challenge in reaching net zero and the effort that must go into decarbonising energy to tackle climate change. That task will require both focus and finance in close partnership between industry and government.

“But the protection and creation of jobs and need to ensure Scotland’s world-class energy leads that global energy revolution means we must manage the transition carefully.

“The Energy Profits Levy, or so-called ‘windfall tax’, is another barrier to unlocking the critical investment in energy that is required. While it might, in principle, have popular appeal our study shows that people are unconvinced of its impact in lowering the burden of household bills or in driving firms to invest in renewables.”

https://planetradio.co.uk/northsound/local/news/oil-and-gas-licenses-true-north/

Most Scots in favour of new oil and gas, survey finds

Less than a quarter of Scots believe new oil and gas licenses awarded by the UK Government are the wrong decision, according to a new survey.

The True North poll also finds that three out of every five people aren't convinced that the controversial Energy Profits Levy (EPL) - which taxes profits from oil and gas companies at 75% - was helping to reduce household bills or driving energy firms towards renewable technologies.

Three-quarters of Scots favour domestic production of oil and gas, with less than 14% considering domestic production to be a negative influence.

Public 'squarely behind' new licenses

Commenting, True North Managing Partner Fergus Mutch said:" In a series of polls commissioned by True North over the past year, we’ve looked closely how the UK’s energy sector is perceived by the public at large and whether this tallies with government policy.

“Overall, the Scottish public considers the energy sector an economic force for good. They want North Sea reserves used while we still need oil and gas as part of the mix as we transition to greener sources of energy.

“By utilising those resources at hand we can ensure that the jobs and economic benefits are realised here in the UK, and avoid the cliff-edge scenario of investment and critical skills being lost to overseas.

“The recent announcement of new oil and gas licences gives industry greater clarity and grounds for confidence — and our poll puts public opinion in Scotland squarely behind such an approach.

“Nobody is in any doubt about the scale of the challenge in reaching net zero and the effort that must go into decarbonising energy to tackle climate change. That task will require both focus and finance in close partnership between industry and government.

“But the protection and creation of jobs and need to ensure Scotland’s world-class energy leads that global energy revolution means we must manage the transition carefully.

“The Energy Profits Levy, or so-called ‘windfall tax’, is another barrier to unlocking the critical investment in energy that is required. While it might, in principle, have popular appeal our study shows that people are unconvinced of its impact in lowering the burden of household bills or in driving firms to invest in renewables.”

https://planetradio.co.uk/northsound/local/news/oil-and-gas-licenses-true-north/

Most Scots in favour of new oil and gas, survey finds

Less than a quarter of Scots believe new oil and gas licenses awarded by the UK Government are the wrong decision, according to a new survey.

The True North poll also finds that three out of every five people aren't convinced that the controversial Energy Profits Levy (EPL) - which taxes profits from oil and gas companies at 75% - was helping to reduce household bills or driving energy firms towards renewable technologies.

Three-quarters of Scots favour domestic production of oil and gas, with less than 14% considering domestic production to be a negative influence.

Public 'squarely behind' new licenses

Commenting, True North Managing Partner Fergus Mutch said:" In a series of polls commissioned by True North over the past year, we’ve looked closely how the UK’s energy sector is perceived by the public at large and whether this tallies with government policy.

“Overall, the Scottish public considers the energy sector an economic force for good. They want North Sea reserves used while we still need oil and gas as part of the mix as we transition to greener sources of energy.

“By utilising those resources at hand we can ensure that the jobs and economic benefits are realised here in the UK, and avoid the cliff-edge scenario of investment and critical skills being lost to overseas.

“The recent announcement of new oil and gas licences gives industry greater clarity and grounds for confidence — and our poll puts public opinion in Scotland squarely behind such an approach.

“Nobody is in any doubt about the scale of the challenge in reaching net zero and the effort that must go into decarbonising energy to tackle climate change. That task will require both focus and finance in close partnership between industry and government.

“But the protection and creation of jobs and need to ensure Scotland’s world-class energy leads that global energy revolution means we must manage the transition carefully.

“The Energy Profits Levy, or so-called ‘windfall tax’, is another barrier to unlocking the critical investment in energy that is required. While it might, in principle, have popular appeal our study shows that people are unconvinced of its impact in lowering the burden of household bills or in driving firms to invest in renewables.”

https://planetradio.co.uk/northsound/local/news/oil-and-gas-licenses-true-north/

Most Scots in favour of new oil and gas, survey finds

Less than a quarter of Scots believe new oil and gas licenses awarded by the UK Government are the wrong decision, according to a new survey.

The True North poll also finds that three out of every five people aren't convinced that the controversial Energy Profits Levy (EPL) - which taxes profits from oil and gas companies at 75% - was helping to reduce household bills or driving energy firms towards renewable technologies.

Three-quarters of Scots favour domestic production of oil and gas, with less than 14% considering domestic production to be a negative influence.

Public 'squarely behind' new licenses

Commenting, True North Managing Partner Fergus Mutch said:" In a series of polls commissioned by True North over the past year, we’ve looked closely how the UK’s energy sector is perceived by the public at large and whether this tallies with government policy.

“Overall, the Scottish public considers the energy sector an economic force for good. They want North Sea reserves used while we still need oil and gas as part of the mix as we transition to greener sources of energy.

“By utilising those resources at hand we can ensure that the jobs and economic benefits are realised here in the UK, and avoid the cliff-edge scenario of investment and critical skills being lost to overseas.

“The recent announcement of new oil and gas licences gives industry greater clarity and grounds for confidence — and our poll puts public opinion in Scotland squarely behind such an approach.

“Nobody is in any doubt about the scale of the challenge in reaching net zero and the effort that must go into decarbonising energy to tackle climate change. That task will require both focus and finance in close partnership between industry and government.

“But the protection and creation of jobs and need to ensure Scotland’s world-class energy leads that global energy revolution means we must manage the transition carefully.

“The Energy Profits Levy, or so-called ‘windfall tax’, is another barrier to unlocking the critical investment in energy that is required. While it might, in principle, have popular appeal our study shows that people are unconvinced of its impact in lowering the burden of household bills or in driving firms to invest in renewables.”

https://planetradio.co.uk/northsound/local/news/oil-and-gas-licenses-true-north/

The Times view on energy company taxes: Fuel Follies

“Special levies on oil and gas firms have predictably deterred investment in North Sea projects and thereby imperilled Britain’s energy security”

“The most basic law of economics, according to the Nobel laureate Paul Krugman, is that things add up.

Rishi Sunak's government appears heedless of that principle in its approach to taxing energy companies.”

“The company, which provides about 15 per cent of the UK's domestic oil and gas needs, has cut some 350 onshore jobs this year as it scales back its activities.”

https://www.thetimes.co.uk/article/the-times-view-on-energy-company-taxes-fuel-follies-nxfrggpzs

Aug. 25, 2023

North Sea Tolmount East close to startup

Harbour Energy expects first gas from its Tolmount East development in the southern UK North Sea around the end of this year.

Courtesy Harbour Energy's "2023 Half-Year Results" presentation

Plus, the company’s multi-well subsea tieback of the Talbot Field to its Judy platform in the central UK North Sea is on schedule for startup toward the end of 2024.

In the same region, Harbour is appraising the Leverett gas discovery, which could lead to a subsea tieback to the Britannia production complex.

Next year the company plans to drill on North West Seymour to extend the producing life of the Armada gas complex, along with associated plant modifications, to 2030.

Harbour is a partner to Apache in the Beryl Field. Although two new wells initially delivered high rates, full-year production has been impacted by a delay in bringing the wells online and Apache’s decision to pause further subsea and platform drilling following the UK government’s decision to increase petroleum taxes.

Other UK field activity includes the start of development drilling at the CNOOC-operated Buzzard Northern Terrace as well as a return to platform drilling at Clair Phase 1, development drilling at Clair Ridge and a new three-well subsea drilling campaign at Schiehallion, all operated by bp west of Shetland.

https://www.offshore-mag.com/drilling-completion/article/14298196/north-sea-tolmount-east-close-to-startup

Https://oilprice.com/Latest-Energy-News/World-News/UK-Oil-And-Gas-Giant-Cuts-Investments-And-Defers-Projects-Over-Windfall-Tax.html

Brent & UK Gas prices recovering from yesterday with also a weaker £GBP versus $USD here

https://tradingeconomics.com/commodities