There is a cast-iron case for imposing a windfall tax on profiteering oil companies
TODAY (May 17) I heard a unionist on TV likening the proposed windfall tax on North Sea oil and gas production as a “form of stealing”. A bit more extreme perhaps than their usual “it would drive future investment in the North Sea away”.
Earlier last year you reported that as a result of the real efforts of the oil producers over a number of years when the oil price was low, the average production costs had been driven down to around $25 a barrel. At the beginning of 2021, the oil price was around $50 a barrel and the oil companies were comfortable.
I am not aware that the cost of producing oil in the North Sea has soared since then – world events and market forces being the cause of the present high world prices for oil and gas enjoyed by the international oil companies. These prices are not expected to go down soon.
At the present oil and gas prices – more than $110 per barrel for oil – the value of Scotland’s oil and gas production is now, in sterling terms, around £100 million per day. Probably three-quarters of that sum is above the production cost. Even the oil companies are admitting that it is akin to printing money for them. There is a cast-iron case to introduce a windfall tax. And I feel sure that three-quarters of the UK’S population is also in favour of such a tax which they will see as fair in the circumstances.
What is it about this Westminster Tory Government that is so resistant to a windfall tax which could be used to relieve the burden of so many who are now struggling? They will have to do a U-turn but they have become used to that. And what a good opportunity to then recognise where the money has come from and to use a sizeable proportion of this Scottish windfall to level up in Scotland. Nick Dekker,
Cumbernauld.
I HAVE followed the debate in The Herald about future energy generation in Scotland with interest – particularly the informed comments of Brian Wilson. As an amateur astronomer for nearly 60 years, I have been saddened to see the stars disappear behind the glare of electric lights. However, help is at hand.
When the Snp/green energy policy reaches its inevitable conclusion and we have frequent, prolonged and widespread power cuts, I will once again be able to enjoy the splendours of the night sky. Alan Somerville,
Polmont.