The UK Is Taxing an Oil Windfall That Doesn’t Exist: Javier Blas

What’s an “unusually high” oil price?

The answer will dictate the moribund British oil industry’s future. Once a source of national pride and economic security, the North Sea today faces a grim future under the weight of inflated taxes targeting unusually high prices.

In May 2022, weeks after the Russian invasion of Ukraine pushed Brent crude to $139 a barrel, the government, then controlled by the Conservative party, slapped a windfall tax on producers. The Energy Profits Levy took the North Sea petroleum industry’s tax rate to 65%. It was supposed to continue until the end of 2025. But soon after, the government hiked the tax again ...