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Https://www.pressreader.com/uk/the-sunday-telegraph/20240922/282179361482593

Banks slash loans to UK North Sea oil groups as windfall tax hits industry

https://on.ft.com/4gBBRv0

The topic is getting plenty of publicity, but is it just falling on deaf ears.

Paused for a couple of days - the dip represents a good opportunity to buy for the company and shareholders.

From this report note the potential job losses and the "windfall decommissioning costs" that will fall on this or future governments when the industry goes bust.

Https://on.ft.com/3ZlLgAL

Another "expert" report are they all falling on deaf politicians.

The company mentioned its investment at the Buchan field where the development is on hold due to the environmental impact statement, as well as the Government’s tax position. It is a very exciting development and ticks so many boxes, it is a flagship state of the art piece of engineering, will be a model for low carbon hydrocarbon production and helps the UK economy by supplying over 1,000 direct jobs, pays more than fair tax and of course contributes to the UK’s energy security.

As I write completing this article I notice that the CFO has bought some shares for cash, something I always like, it shows that he, like me considers Serica to be hugely undervalued. The comments about free cash flow aside, the fact that the company has a fantastic asset base, a really impressive management team with ESG credentials and that robust balance sheet. Serica is plainly way too cheap, it may be suffering from the political behaviour at the moment but the company is built to last unlike the odd Secretary of State…

Maintaining their 9p interim dividend bodes well for their shareholders, should the final be maintained yield = circa 20%.

About the decline in the BP share price which the author blames on an 8 pc decline in Brent oil price. I just wonder what plan RR has up her sleeve should the decline continue to below the level that cuts off the windfall tax.

Announces the completion of the transformational deal reducing HBR’s exposure to the U.K. from 90pc to 30pc. In todays FT she has a swipe at Labour and its Tax policy, will it fall on deaf ears, probably.

I wonder where Rachel Reeves is going to get the governments 50pc share of the demissioning costs from once she has destroyed the CNS sector

Perhaps showing my ignorance of the subject, but surely the environmental impact of burning oil is the same or worse whether the oil is extracted from the North Sea or imported. If it is not extracted from the NS we will have a shortage (=higher prices) or we import it, at higher cost and potentially greater environmental impact - what am I missing.

Sound thinking Millario.

The Labour party's contradiction in its climate change policy, drawing attention to their approval of expansion of the London airport, whilst banning new CNS exploration licences and taxing the sector out of existence.

**Will await a decent FTSE100 drop before buying back.**

With our market and both Germany and France close to all time highs and all US markets in similar positions I would imagine some downward pressure is due. In 8/9 weeks the impact of the first labour budget will come home to roost, cannot imagine it being good news for anyone in the UK other than those on benefits.

I sold some 20th (Tuesday) at 232.85p - I had been expecting the shares to reach at least 235p before the 6p divi.

Will await a decent FTSE100 drop before buying back.

Https://on.ft.com/3WMFuW2

Let close down the North Sea (lose all the tax) and move all the pollution to central London - sounds like a plan.

Https://on.ft.com/3X7R5QX

All good stuff DU, for me the interesting bit is "what tax revenues from the sector are built into Labours budget through to 2030". One would assume the total figure (whatever that may be) would be broken down by existing, and potential future projects. As you have pointed out BUCHAN will happen, there is no advantage to be gained by Labour in any delay.

Frazerjohn - Good post - They need to wake up to the damage their policy will cause. Falling or even no investment, much less tax, quicker decommissioning costs, importing more expensive and dirtier fuel, and no doubt significantly higher unemployment benefit claims - if Reeves thinks she has a black hole now this policy will make what she has now seem like a mouse hole.

Some really hard talk in that link posted by NewKOTB. A lot of common sense in the narrative only "uneducated fools" would ignore the facts at a terrific cost to the nation. Already rumoured that the budget may include a hike in fuel duty (remember Sunak cut 5p a litre during the energy crisis) adding further to the government take on tax.