How much north sea oil is left

Co-operation between regulatory bodies should help ensure consistency in the regulatory environment and that licensed activity is recognised in both jurisdictions. In the longer term, it may be possible for the continuing UK and Scotland to negotiate an intergovernmental framework similar to the framework already entered into between the UK and Norway in respect of infrastructure and fields that straddle the UK-Norwegian EEZs.

For more information on international law issues arising in the case of Scottish independence please see our briefing on Scottish independence: the international law implications briefing. The fiscal position of a hypothetical independent Scotland has been significantly affected by North Sea tax revenues over time.

For it was 6. A Average Scottish budget deficit excluding geographic share of North Sea revenue. E Average that A was higher than C. For these illustrative purposes, GERS estimate the apportionment of North Sea revenues is based on the median line principle as employed in to determine the boundary between Scotland and the rest of the UK for fishery demarcation purposes.

A major concern for companies operating in the North Sea oil and gas sector will be to ensure that nothing jeopardises tax reliefs associated with future decommissioning costs. The legislation governing decommissioning costs allows participators in an oil and gas field liable to decommissioning expenditure to seek tax relief for such expenditure, through a carry back against profits arising to the participants from the field.

This usually results in significant repayment of tax to present or past participators. The division of such State liabilities will be just one part of wider independence negotiations in relation to the apportionment of assets and liabilities see our briefing on Scottish independence and currency: choices, issues and implications on this question more broadly.

Indeed the Scottish Government saw the scale and value of future decommissioning work, as a significant opportunity to support future economic growth. The counter-argument from the White paper perspective was that the negotiations on dividing up State assets and liabilities relating to oil production and to decommissioning tax relief should balance future decommissioning liabilities against the previously accrued tax receipts which had not at that time been apportioned to Scotland on a geographic basis.

The SGC Report did not discuss this issue although, as we touch on in our currency briefing , it took quite a firm position on the dividing of assets and liabilities generally. If the Scottish Government was to reduce the available relief, it would likely act as a significant disincentive to investment in independent Scottish State oil and gas assets. During the campaign the Scottish government proposed, as set out its White Paper, that the existing licensing and regulatory regimes would continue and that existing oil and gas licences would continue to be in force in an independent Scotland.

Net zero means reducing greenhouse emissions as much as possible and then balancing any that remain by absorbing an equivalent amount from the atmosphere. It will see the UK cease export finance, aid funding and trade promotion for new crude oil, natural gas or thermal coal projects.

However, a controversial gas scheme in Mozambique will still go ahead because it has already been approved. It says the transition must be made by the people of Scotland, not done to the people of Scotland. The commission - recruited by the Scottish government from industry, trades unions and academia - says worker education and skills training will be vital. It says the great move towards low carbon must be done in co-operation with the unions. This is important but not at any price.

It has to be to the mutual benefit of all parties despite the ingrained culture of the basin;. The basin needs new ideas. It needs disruption and change at the same time as recognising the benefit of the existing wisdom and experience ;. Cost efficiency needs to be embedded irrespective of the vagaries of the oil price;. However, deals are going through with innovative solutions;.

This wasn't top of mind for UK industry participants as they focus on cost reduction. In contrast, the responses from the Netherlands reflected a sector already planning an expansion of renewables post decommissioning. You can change your settings on the Cookies information page : you need to accept Advertising cookies to see this YouTube video. Capital is vital for the future and different kinds of capital are needed across the life cycle. Innovations such as consortium financing, where counterparty risk is collective, could build an area or asset approach to a project rather than a company focused one.

Government establishing clear support around decommissioning could also make a huge difference to smaller operators — a decommissioning guarantee scheme to lessen the burden of abandonment letters of credit for example. View more. Cost efficiency is paramount and goes beyond cost reduction, especially when combined with a reduction in complexity and a leaner way of operating. Collaboration is an over-used word, particularly in relation to the North Sea — the key is ensuring there is real mutual benefit for all parties.

This would also enable a more coordinated approach to the decommissioning of the asset pool. Additionally, this would be a fantastic opportunity for the kind of consortium based approach to financing mentioned earlier. Government and regulators across the basin have a role to play — from clearly articulating their vision for the future to signposting the way ahead on topics such as infrastructure ownership, encouragement for exploration, decommissioning and the transition to low carbon.

They all need to set a blueprint for the future. Leadership is a vital component too — recognising the importance of our global centre of excellence in Aberdeen, and other regional centres such as Stavanger, and their true potential, as well as the economic benefit for the region are vital.

Additionally nurturing the talent of the future to drive those truly transformative changes, are key traits of real leadership; in the industry, operators and the supply chain will need to show leadership. Join over , Finance professionals who already subscribe to the FT. Choose your subscription. Trial Try full digital access and see why over 1 million readers subscribe to the FT.

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