{"id":272270,"date":"2023-08-08T20:21:16","date_gmt":"2023-08-08T18:21:16","guid":{"rendered":"https:\/\/climatescience.press\/?p=272270"},"modified":"2023-08-08T20:21:41","modified_gmt":"2023-08-08T18:21:41","slug":"north-sea-tax-credits-are-not-subsidies","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=272270","title":{"rendered":"North Sea tax credits are not\u00a0subsidies"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

London, 8 August \u2013 A new paper from the Global Warming Policy Foundation aims to explain the way North Sea oil and gas projects are taxed and corrects the widespread confusion over the tax credits that accrue to oil and gas fields at the end of their lifetimes.<\/strong><\/em><\/p>\n\n\n\n

While environmental activists like to paint so-called tax credits as \u201csubsidies\u201d, they are in fact nothing of the sort. They arise because the government has forbidden energy companies from putting money away against the eventual decommissioning of oil and gas fields.<\/em><\/p>\n\n\n\n

The paper\u2019s author, economics writer Tim Worstall, explains the effect on their tax bills.
\u201cThe companies pay extra tax during the life of the field, but when the field is decommissioned, there is no income to offset the cost against. This leaves them with a tax credit \u2013 and less revenue for the Treasury.\u201d<\/strong><\/em><\/p>\n\n\n\n

GWPF director Benny Peiser emphasises the point.
\u201cThe special rules for North Sea oil and fields mean that taxes are paid earlier rather than later, but the amount of tax paid is the same. Thus, it\u2019s not a subsidy. It\u2019s just another way the government of the day tries to maximise tax revenues now while leaving a big hole for future balance sheets \u2013 long after ministers have retired.\u201d<\/strong><\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A new paper from the Global Warming Policy Foundation aims to explain the way North Sea oil and gas projects are taxed and corrects the widespread confusion over the tax credits that accrue to oil and gas fields at the end of their lifetimes.<\/p>\n","protected":false},"author":121246920,"featured_media":272274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818610,691821704,691818299],"class_list":{"0":"post-272270","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-north-sea","9":"tag-oil-and-gas-projects","10":"tag-subsidies","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/image-293.png?fit=2060%2C1236&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-18Ps","jetpack-related-posts":[{"id":261357,"url":"https:\/\/climatescience.press\/?p=261357","url_meta":{"origin":272270,"position":0},"title":"How Will Labour Replace North Sea Oil Tax\u00a0Revenues?","author":"uwe.roland.gross","date":"09\/06\/2023","format":false,"excerpt":"There are many reasons why Labour\u2019s proposed ban on new North Sea oil and gas development, but one of the most powerful is the loss of potential tax revenue.","rel":"","context":"In \"Labour\"","block_context":{"text":"Labour","link":"https:\/\/climatescience.press\/?tag=labour"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Culzean-full-platform-image-High-res.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Culzean-full-platform-image-High-res.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Culzean-full-platform-image-High-res.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Culzean-full-platform-image-High-res.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Culzean-full-platform-image-High-res.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":299809,"url":"https:\/\/climatescience.press\/?p=299809","url_meta":{"origin":272270,"position":1},"title":"Most North Sea oil and gas projects would be \u2018unviable\u2019 under Labour plans","author":"uwe.roland.gross","date":"04\/02\/2024","format":false,"excerpt":"Three-quarters of all the North Sea\u2019s new oil and gas projects would be rendered\u00a0economically unviable under Labour\u2019s tax proposals, industry chiefs have warned.","rel":"","context":"In \"Labour plans\"","block_context":{"text":"Labour plans","link":"https:\/\/climatescience.press\/?tag=labour-plans"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":433546,"url":"https:\/\/climatescience.press\/?p=433546","url_meta":{"origin":272270,"position":2},"title":"Miliband’s North Sea Ban: Ideological Madness in the Face of War-Driven Energy Chaos","author":"uwe.roland.gross","date":"23\/03\/2026","format":false,"excerpt":"Miliband maintains that extra North Sea production would make no \u201cmaterial difference\u201d to household bills (prices are set globally) or long-term supply. 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