The Telegraph- Biggest North Sea producer refuses to drill new oil wells because of windfall tax
The North Sea licensing round was launched in October, with then business secretary Jacob Rees-Mogg saying it was “more important than ever we make the most of sovereign energy resources”.
Since then, a windfall levy on oil companies, which was first introduced in May, has been increased to take the overall tax rate on North Sea producers from 40pc to 75pc until 2028.
Unexpectedly.
TPTB really, really want to destroy Western economies.
And, I must say, they are very good at their job.
+++C C , yes they are.
… and Trudeau sees this and thinks, What a good idea!
I think Justin is already aware, given that his dad invented the windfall tax on energy production.
Where is the “windfall” tax on Pfizer, et al?
A great idea to raise in Parliament.
The economic ignorance of politicians never ceases to amaze.
When one wishes to commit a crime, the biggest factor is generally how not to get caught. This requires misdirection.
In this case, many people see stupid/shortsighted/ignorant politicians, which although that may be true for many, the larger issue is that the people behind such bills are looking to decrease the production of oil which will lead to skyrocketing prices, the slowing of the economy, and the increasing poverty of the people.
When the inevitable occurs, the politicians will blame profiteering, inflation, and anything else under the sun other than the root causes.
People have become so uneducated (by design) while still thinking themselves wise that this elementary strategy works. It’s why the scum behind the curtain never change their playbook.
most Oil companies already pay more tax to governments than profits to shareholders, this is just an extension of it.
The shareholders pay tax on those profits as well. Then there are the taxes on the remaining “non-taxed” monies that go on to buy other crap and produce more taxable incomes, more shareholder dividends & capital gains, much less Carbon Taxes, Environmental Taxes, GST’s, HST’s, VAT’s……….
Triple, Triple, Triple
Yep, and much of the money the oil companies have to spend is on global warming BS programs that they have no choice but to participate in. This substantial budgeted amount is then spent on far-left hacks who just so happened to get into the business of “environmental” assessments, measurement, and compliance. Selling completely unnecessary and often inferior oilfield equipment that meets new standards, along with software that tracks and measures insignificant puffs of harmless emissions that are vented into the sparsely populated environment. These systems then aggregate those volumes into scary sounding “Tonnes of CO2”, with which to frighten the ignorant.
So essentially we are being pushed to working entirely for the scum behind the puppet governments. Their agenda goes forward regardless, and we are forced to do less productive work and more pointless BS.
For far less take-home pay after taxes and government-created inflation. All while the regulatory parasite-class grows.
This is how governments consume 50% of the economy.
75% !?!?
Come on! You can do better! Make the tax 100%!
Oil production is a boom-and-bust business. Companies have to weather years of losses or marginal profits for the opportunity to cash in when the price soars.
Take away those boom years and you take away the industry.
Exactly.
To paraphrase Ayn Rand (I think) ” No one has to drill an offshore oil well”.
They do under Socialism, otherwise they are taken out and metaphorically shot. Of course, this will create a shortage of oil field engineers, just like it has created a shortage of doctors.
The English people used to be smart – didn’t they? What happened?
I think it’s called “being comfortable”. An easier life radically changes ones goals and approaches. Much like absolute power, I suspect.
Post World War two Britain was effectively communist. Unlike most communist regimes they made one huge mistake. Unlike almost all communist regimes they didn’t build walls to be keep people in. The inevitable happened and the productive and ambitious fled. Britain replaced those people with people from former third world colonies. The result is 21st century Britain.
Makes sense. There were a hell of a pile of smart English people immigrating back in the day. I knew kids of cops and doctors. Now the shithole world is descending on England as if it was El Paso, Texas.
It is descending everywhere, western countries that is.
The Welfare State.
Aside from the continuing economic suicide of green theocracy (socialism and or fascism draped in green), the oil and gas sector is being set up to be taken over by the state, IMHO. You tell the industry you will be phasing them out of existence and replace them with delusional energy fantasies, tell them to increase production as a result of delusional energy fantasy failure, tax away their incentive to produce any more, and then denigrate them for refusing to play ball. The Eloi will side with the sociopaths engineering this disaster (through deceit or ignorance) and support them when they nationalize oil for the “common good”. The EU and UK (and coming to a LPC / NDP regime near you) – following in the footsteps of Venezuela.
It’s all a plan, everyone.
No oil for any purpose.
Klaus Barbie must be pleased.
I sometimes wonder whether Schwab and Soros are not Hitler’s revenge. The Fourth Reich? More like the Filth Reich to me.
Oddly enough……
A scan through the KNOWN list of interesting folk who left Nazi Germany late / post WW2 can be very interesting.
The places to which they “fled” are equally interesting.
There were enough German aerospace and nuclear geniuses to go around the USA, soviet union, Britain, France, Argentina and beyond.
The SS, who actually RAN most of the “exotic” programmes, had thought about what to do if the wheels fell off, LONG before the “end”. Check out a character named Hans Kammler.
Just for giggles, significant members of the Abwehr STAYED behind in the newly divided Germany and “did their own thing”, just under new management and with essentially the same types of organizations.
The East Germans did not even bother to hide it; take a look at photos and movies footage of the post-war DDR military: Jackboot? Check. Field grey uniforms? Check. Pattern 1945 helmets? Check. They just swapped out the Krooked Kross for a set of dividers.
That which makes more money is incentivized. That which makes less money is dis-incentivized.
Therefore bureaucrats are incentivized to be profligate spenders so their departments will be given more money the next year. And buisinesses are dis-incentivized to produce more of what we want for cheaper lest it be deemed a “windfall”.
Ain’t Marxist economics fun? Also deadly, for those who need fuel on a cold winter night.
You have to hand it to government…
So to speak.
At the point of a gun. Thus the IRS swat team.
The beatings will continue until morale improves.
When will socialists ever learn that they can’t promise to spend OPM, when it no longer is available.
Stupid Brit gits!
But they do it all the time.
Guess Ed Stelmach got a job consulting for the Brits. Nice.
We called him “Special Ed”.
Haha The pompous virtue signaling of politicians who never step outside of Westminster, or their winter vacation homes, meets reality and the politicians are perplexed, bedeviled and confused …
What do they do? Force them to drill for the oil they say they want to stop? Send in the army? Only they know how to drill for oil.
How about realizing they have turned into an intellectual cul de sac, and the best thing is to back out, reduce taxes, end the green propaganda and global warming nonsense and then, if they are lucky, get re-elected.
Gavin Newsom would compel them to drill … then … cap their profits …
https://www.msn.com/en-us/money/markets/newsom-accusing-oil-industry-of-price-gouging-unveils-plan-to-cap-refinery-profits/ar-AA14WqFk
Because … that’s what Communists do. Starts in CA and spreads like a virulent cancer across the US
Californianism is on its way to strangling everything. When there are no profitable businesses remaining to tax, what a pleasant Nirvana we’ll see!
Look for California to legalize cannibalism sometime in the next decade; because when all productive activity has been destroyed, there’s nothing left to eat – except your neighbor.
In nature, the parasites are generally smart enough not to kill the host.
In Western governments, not so much.