Overview
- Offshore Energies UK published an economic report urging the government to replace the Energy Profits Levy with an Oil and Gas Revenue Levy from 2027, saying the change would make the tax regime more price‑sensitive and investor friendly.
- The report estimates that fiscal and licensing reform could unlock 111 projects, attract about £50 billion of private investment and yield 3.25 billion barrels of oil equivalent in production.
- OEUK warned that delays to licensing decisions, especially for the Jackdaw gas field and Rosebank oil project, risk postponing output needed for the coming winter and said Jackdaw alone could supply up to 6% of UK winter gas demand if approved.
- The trade body also flagged Europe’s gas storage at a five‑year low and projected sustained winter price pressure, while saying an earlier levy would raise roughly £14.9 billion for the Treasury over the next decade under its scenario.
- The UK Government has not adopted OEUK’s 2027 timetable and keeps plans to replace the windfall tax by 2030 or earlier if a price trigger applies, and climate campaigners have disputed OEUK’s geological and emissions assumptions.