North Sea Oil Industry Costs Taxpayers £312m in Year

The North Sea oil industry cost taxpayers £312m last year as revenues plunged into the red for the first time, new figures show.

The result is the worst since records began nearly 50 years ago, according to HMRC.

It blamed low oil prices, high operating costs and declining production for the lost tax.

HMRC reported: “Government revenues have declined over the last few years from £10.9bn in 2011/12, to -£312m in 2016/17.

“Significant investment in both existing developments and new projects is resulting in continuing high levels of expenditure.

“This combined with a halving of the oil price between 2011/12 and 2016/17 and a 10% decline in oil and gas production over the same period contributed to the reduction in government revenues.”

Petroleum revenue tax revenues fell to from -£562m to -£650m, while corporation tax more than halved from £713m to £338m, HMRC said.

Figures published last year predicted 2015/16 would be the first time tax revenues would drop into the red, with an anticipated loss of around £21m.

The year ended with the industry £151m in the black, however, the worst result since 1978.

The oil downturn has cost an estimated 120,000 jobs in the UK since 2014, despite a number of high-profile new projects and growing confidence in the sector.

On Monday, Statoil announced the construction of the Mariner field would create around 1500 jobs between summer 2017 and late 2018.

It will support about 700 permanent onshore and offshore positions in the long-term.

Source: stv.tv