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Independent think tank working to accelerate political action and create transformative policy for a green and prosperous UK. 🎧 Listen to our podcast here 👇

Feb 22, 2022, 7 tweets

💥New report💥

Tax breaks for North Sea oil and gas extraction isn’t just bad for the climate, it's bad economics 🛢️🛢️🛢️

Our report out today explains why it doesn’t make sense to extract the last drop: bit.ly/3v7UG3W

A thread 1/7

The North Sea is an increasingly expensive place to drill for #oilandgas .

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With tax breaks, the UK government is masking the true costs of North Sea #oilandgas and tipping the scales in favour of more extraction.

But who is benefiting? UK tax revenues from oil and gas are tiny compared to Norway.

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Revenues from North Sea #FossilFuel extraction have been in steep decline since 2013. The @hmtreasury made a net loss between 2015-17.

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UK taxpayers aren’t benefiting from these tax breaks but oil and gas companies are.

In 2019, BP’s North Sea operations paid an effective tax rate of -54 per cent. And, in 2021, oil and gas majors made record profits.

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Tax relief for oil and gas companies is set to increase with taxpayers helping with the looming cost of decommissioning old rigs & this will go up if more rigs come online.

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#Oilandgas prices are set by the global market. More UK extraction won’t bring down bills.

But the tax system is shielding companies from economic realities & driving bad decisions, which will cost the taxpayer & investors.

Read our report: bit.ly/3v7UG3W

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