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EY comments on UK Budget's implications for oil and gas industry

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Oilfield Technology,


Derek Leith, EY’s Global Oil and Gas Tax Lead, has commented on the UK Budget's implications for the oil and gas industry:

“The new Chancellor’s [Rishi Sunak] decision to hold steady and make no legislative change for the oil and gas industry is a welcome move.

“In recent years we’ve seen significant change to the tax landscape for the oil and gas sector, with successive governments acknowledging the maturity of the basin and the need to have stable fiscal conditions for investment. Last weekend’s drop in oil price demonstrates that there is significant volatility in the sector with global demand faltering and supply side discipline disappearing.

“A return of the oil price to the US$55-US$65 range would be beneficial to the industry as it seeks to maximise economic recovery whilst taking steps to decarbonise production facilities. A stable oil and gas industry in the UK offers the best possible foundation for the oilfield services sector and supply chain to start to transition its technical competence into alternative energy.”

Read the article online at: https://www.oilfieldtechnology.com/special-reports/12032020/ey-comments-on-uk-budgets-implications-for-oil-and-gas-industry/

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