UK-based energy company Serica Energy is thinking of pulling out of Britain, citing high taxation.
The oil/gas exploration and production company is considering a move to a Nordic nation with Norway being a potential option.
Declining Sector Amid New Energy Goals
The marginal tax rate applicable to income derived from oil and gas extraction stands at 75%. This figure is due to rise to 78% come November. This tax rate applies to the UK and the UK Continental Shelf – waters around the UK where national mineral rights exist.
Labour is currently targeting 100% clean and affordable electricity by 2030. As a result of this and similar plans, the decline of the North Sea oil and gas industry is arguably inevitable.
On the one hand, Labour believes their energy ambitions will lead to a range of positive outcomes including the creation of 650,000 new jobs. However, earlier this year a report showed that 100,000 gas and oil sector jobs are at risk.
The Pros And Cons Of A New Energy Vision
A green energy transition has the potential to provide a net increase in jobs. However, a decline in the fossil fuel sector will have a negative impact on some workers and potentially some communities.
This is reflective of the nuanced challenges involved in making a switch to cleaner energy in the UK. This highlights the importance of the government addressing the drawbacks of a green energy transition while also honing in on the positives.
The North Sea oil and gas sector has seen significant decline already in recent years and over the decades. Just 34 million tonnes of oil were produced in the region, the lowest amount since the beginning of North Sea oil production five decades ago.
Recent Polling Data On Energy
Recent data from YouGov has shown substantial support for the expansion of renewable technology in the UK.
Oil, gas, coal and shale gas all have relatively low favourability ratings. Less than 10% of respondents support the expansion of either of these . The poll showed significant division on the topic of nuclear power.