Oil industry after Record Profits want tax breaks Carl Mortished, World Business Editor
The UK oil industry has asked the Government for tax breaks to prevent a collapse in drilling activity in the North Sea that could lead to the loss of up to 50,000 jobs in Britain. Oil industry lobbyists have met Ed Miliband, the Energy Secretary, to alert the Government to the likelihood of a sharp fall in North Sea investment this year because of the collapse in the oil price and a lack of funding from banks for offshore projects. Figures from Oil & Gas UK, the North Sea industry association, suggest that the number of wells drilled in the North Sea could be a third of last year’s total of 109. The association said: “A year ago, it was anticipated that up to 113 wells could be drilled in 2009, whereas the latest survey predicts 77 wells, of which only 34 have a committed drilling rig.” Malcolm Webb, the association’s chief executive, fears that the fall in the oil price, the lack of funding and high taxes will lead to a halving of investment from last year’s £5 billion. He said: “There are about 20,000 jobs relying on each billion pounds of capital expenditure. That’s about 50,000 jobs [potentially at risk] in the North Sea and the supply chain.” http://waronyou.com/topics/oil-industry-after-record-profits-want-tax-breaks/
