NAO report reveals cost of removing hundreds of North Sea wells, rigs and pipelines
British taxpayers face a £24 Billion bill for tax relief awarded to oil and gas companies removing hundreds of North Sea wells, rigs and pipelines, the UK public spending watchdog NAO has said.
The National Audit Office (NAO) said the figure would climb if companies collapse and are unable to pay for cleaning up their operations, leaving the government to take responsibility.
The offshore oil sector has contributed more than £300 Billion in tax revenues to the Treasury since the 1960s. North Sea oil production peaked in the mid-1980s and the late 1990s, and has been declining ever since.
Tax revenue peaked at about 3% of GDP during the 1980s, but slumped as output from the region declined. A combination of low oil prices and decommissioning costs resulted in the industry becoming a net drain on the government purse for the first time in 2016.
Britain is doing socialism for the rich again – this time for oil and gas.
Source: The Guardian