Cavendish Research Director James McCormack talked with Proactive about the significance of three public consultations that could shape the future of the UK North Sea oil and gas industry. He highlighted that 2025 will be a pivotal year, with ongoing discussions covering scope 3 emissions, long-term fiscal regimes, and the future of licensing in the basin.
McCormack explained that scope 3 emissions—those created from end-use fuels like petrol and diesel—are under review for inclusion in environmental impact assessments. He stated, “At the moment, both developments have been allowed to proceed and to progress,” referencing Rosebank and Jackdaw projects.
He added that including these emissions in planning is controversial, as they do not vary based on whether the fuel is produced domestically or imported.
On the fiscal side, McCormack discussed plans to introduce a price mechanism for taxing profits, different from the existing windfall tax. This new framework would set a price floor, only taxing profits above a certain level—reducing uncertainty for long-term investments.
Finally, McCormack commented on the consultation about the future of the North Sea. While existing licences will be honoured, new ones are currently on hold—raising concerns over energy security and emissions from imports.
For the full interview that discusses what's at stake for investment in the North Sea, follow this link.
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