UK-Oil
The British government is in line for a Pnds 15 billion (Dlrs 30 bn) from record oil prices, according to the industry trade body Oil & Gas UK.

In its 2008 Economic Report, the representative body for the UK offshore oil and gas industry forecast an extra Pnds 5.1 bn will flow to the Treasury in addition to the Pnds 9.9 bn Chancellor of the Exchequer Alistair Darling predicted in his April budget.

The chancellor based his calculations on an average oil price of Dlrs 83 per barrel (dpb) but prices have soared to over 140 dpb, reaching an all-time high of 147.50 dpb last Friday.

Malcolm Webb, chief executive of Oil & Gas UK, said the treasury will benefit this year from around Pnds 16 bn in tax by the oil and gas industry on production as well as Pnds 5 bn to Pnds 6 bn in corporation and payroll taxes paid by the supply chain.

"Insuring the investment is secured to boost recovery of the UK's remaining 25 bn barrels of oil and gas so that the nation can continue to reap all the associated benefits is a matter of national importance," Wicks argued.

A Pnds 15 bn tax revenue boost is seen equivalent to four pence being lopped off the basic 20 pence rate of income tax and is expected to lead to renewed demands for the government to
immediately freeze this September's rise in fuel duty.

The report underlined the declining output from the North Sea, expecting last year's production of 2.8 million barrels of oil equivalent per day (boepd) to fall this year to between 2.6 m to 2.7 in 2008.