Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

Chancellor George Osborne delivers his last budget before the General Election

Read more...

Tax planning for 5 April 2015

Read more...

Man jailed for 673,000 VAT fraud. 13/08/12

Read more...

HMRC announce new wave of Taskforces. 12/06/12

Read more...

HMRC tribunal victory on tax avoidance scheme.

Read more...

Contact Us

News Items

Tax Tips

Brilliant with numbers
Great with people
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals


Helping Your Business is Our Business


Call us now on 023 8083 6900 ABDS Home

News - 24 February 2015

2014 was a bad year for the oil and gas industry.

In a survey from Oil & Gas UK, the industry body blames falling oil prices and rising costs which resulted in the sector spending and investing more than it earned from sales during 2014, making it the worst annual performance for the UK offshore oil industry for forty years

As a result of this drilling and investment would fall during this year

Oil & Gas UK said the "bleak" findings emphasised the urgency of government action to secure the industry's long-term future.

Liz Kennett, Manager of the Accounts Department of ABDS comments:
“The industry expected 25 wells to be drilled last year, but only 14 took place, and this year they expect between eight and 14 exploratory wells to be drilled, with only five to produce viable product.”

Cost and efficiency measures are required to improve by up to 40% per barrel of oil if there is to be a sustainable future for the UK's offshore sector, the survey suggests.

Oil & Gas UK chief executive Malcolm Webb said: "Even at $110 per barrel, the ability of the industry to realise the full potential of the UK's oil and gas resource was hamstrung by escalating costs, an unsustainably heavy tax burden and inappropriate regulation.

Liz Kennett continues:
“From 2010 until mid-2014, world oil prices had been fairly stable, at about $110 a barrel. But since June, prices fell below $50 and have recently been trading at around $60. The reason for this can be seen by an increase in USA production, continued high production levels by tradition oil producing nations and slow economic growth large parts of the world.”

Scotland's Energy Minister Fergus Ewing said: "This report highlights the long overdue and urgent action on taxation and regulation, which the UK government must deliver to give the industry the certainty it needs to protect jobs and investment.

A government spokesman said: "The UK government recognises how important the North Sea is, both in terms of the thousands of jobs it supports and the benefit it brings to the UK economy.

For those who are looking for a more personal approach on a range of business related issues, contact us at ABDS.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Brilliant with numbers   
Great with people  
Clear and precise with advice
Timely and cost effective 
In touch with issues that face our clients and
mindful of their long term strategic goals

Helping Your Business is Our Business

« Back to News