Sayma Cox

A well considered and balanced opinion from Andy Wood. While Andy is a huge Geothermal and renewable energy advocate, he understands the relevance and requirement of hydrocarbons in this poorly managed and unrealistic (necessary) period of energy transition. These levies will not drive change in UK gas consumption, it will simply require more import from our neighbours who have more balanced and realistic approach. At 14:00 hrs today in the UK the renewable energy sector provided just 9.1% of the UK energy consumption. About the same time the vast majority of UK Oil & Gas companies are fixing to pull out of UK. This isn't a decision that can be reversed easily..... When wells & platforms are abandoned, pipelines gone and refineries closed, during one single electoral cycle the damage is irreversible. British electricity mix at 2pm on 30th Oct 2024 (Thank you Alan Williams) 🔥Gas 56.6% Biomass 8.8% 🍃Wind 4.9% Solar 2.9% Hydro 1.3% ⚛️Nuclear 10.9% ➡️Imports 13.8% Other 0.0% 🪫Storage 0.8% 🔌Generation 36GW Carbon intensity 305 gCO2e/kWh vs 50-100 gCO2e/kWh target by 2030

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🚨 Interesting proposal from #Ofgem to temporarily cap TNUoS charges, potentially lowering costs for generators in Scotland. Could this be a real opportunity to accelerate low-carbon deployment, or is the 'temporary' nature too risky for investment? 🤔 How does this align with the push for Locational Marginal Pricing (LMP)? And what role will NESO play in this decision? Would love to hear thoughts from the community—can temporary solutions be truly bankable in the long term? https://lnkd.in/eceJcVib

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It seems the only remaining uncertainty (hopefully) with regards to fiscal changes for the UK oil and gas industry in the upcoming Budget is something called the First Year Capital Allowance on the Energy Profits Levy (EPL). Following the election earlier in the year, Rt Hon Rachel Reeves' fiscal statement on 29th July outlined an intention to raise the EPL rate to 38% from 35% (taking the headline tax rate for the sector to 78%), to remove the EPL’s investment allowance and to further review the EPL First Year Capital Allowances, while extending the levy a further year to 31st March 2030. Applying what we KNOW is coming, leads to a regime where tax will be levied at 78% with capital reliefs at 84.25%. Even though any further negative changes would be unwelcome, a scenario where the industry is taxed at 78% and is able to claim relief at 78%, would likely be viewed as acceptable and would allow companies to invest and make some sort of return. Therefore a situation where capital relief stays >=78% would be a good outcome, <78% = bad. By my maths, in order to achieve 78% tax / 78% relief, the First Year Capital Allowance on the EPL would need to reduce from 100% as it is currently, to 83.55%. So with most other changes already confirmed, (absent any surprises) next Wednesday the number people should be paying most attention to is what happens to the First Year Capital Allowance on the EPL 🤞 🤞 🤞 #UKBudget, #Oilandgas, #UKCS

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Ithaca Energy has agreed to buy nearly all of Eni's UK-based oil and gas producing assets for about 754 million pounds in stock, as it looks to become one of the biggest independent energy companies in the North Sea. The North Sea is an energy-rich region in the Atlantic Ocean that has long been coveted by European oil and gas companies for its potential, but aging reserves and security concerns have made development there challenging. The transaction is part of Eni's broader strategy to develop businesses focused on a geographical area or a specific activity and share the investment efforts with a partner. Reporting with Shanima A. and Francesca Landini for Reuters

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Politics and the Oil and Gas Industry has hit a stalemate in Scotland with SNP siding with the Greens and Labour just being ridiculous as well as Conservative having their chance but failing miserably to control the dissidents that want all hydrocarbon extraction stopped. As for the Liberals, enough said. Maybe it is time for a change. Not a fan of Nigel Farage, but.... Reform UK on Net Zero and Energy: Net Zero is pushing up bills, damaging British industries like steel, and making us less secure. We can protect our environment with more tree planting, more recycling and less single use plastics. New technology will help, but we must not impoverish ourselves in pursuit of unaffordable, unachievable global CO2 targets. CRITICAL REFORMS NEEDED IN THE FIRST 100 DAYS: Scrap Net Zero and Related Subsidies Ditching Net Zero could save the public sector over £30 billion per year for the next 25 years. Scrap Annual £10 Billion of Renewable Energy Subsidies Achieve this through equivalent taxes on them. Renewables are not cheaper. Our bills have increased dramatically in line with the huge increase in renewables capacity over the last 15 years. Cheap, Secure Energy for Britain: Start fast-track licences of North Sea gas and oil. Grant shale gas licences on test sites for 2 years. Enable major production when safety is proven, with local compensation schemes. Thereafter: Cleaner Energy from New Technology Fast-track clean nuclear energy with new Small Modular Reactors, built in Britain. Increase and incentivize ethical UK lithium mining for electric batteries, combined cycle gas turbines, clean synthetic fuel, tidal power and explore clean coal mining. Just maybe, this could be the way forward, however, I have a few more days to think about it. https://lnkd.in/gtMJ_Hfg

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The recent North Sea Transition Authority (NSTA) report underscores the progress and urgency behind the North Sea operators' commitment to reach net zero by 2050. These commitments include interim targets, also set by the UK Government, such as a 50% reduction in emissions by 2030 and a 90% drop by 2040. As the offshore sector accelerates its efforts, innovative technologies will play a crucial role in meeting these goals, and at ICR, we are proud to be part of this transition. Our Technowrap solution offers a 66% reduction in emissions compared to traditional steel replacement methods, directly supporting the emission reduction milestones outlined in the NSTA report. By extending the life of critical infrastructure while significantly reducing embodied carbon, Technowrap is a practical, sustainable alternative to outdated methods. Similarly, Quickflange eliminates the need for welding, offering an 80% time saving and cutting greenhouse gas emissions by 57%. As the energy sector faces increasing pressure to meet these targets, ICR continues to innovate and offer sustainable solutions that help companies align with the UK’s net-zero strategy. Together, we are working to build a more sustainable future for the North Sea and beyond. Scottish Business Insider - https://lnkd.in/ePV5b6rk #Sustainability #NetZero #EmissionsReduction #EnergyTransition #Innovation #ESG #ICRGroup #Technowrap #Quickflange #SkyFutures #NorthSeaTransitionAuthority

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It’s Friday again! Enjoy our week No. 1️⃣6️⃣ in the Market Round-up presented by our Esgian Rig Analytics team! Feel free to share this with your connections and follow us at Esgian Rig Service. #Esgian #RigAnalytics #MarketUpdate

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Day 234 / 366 🌍 Scotland's Green Freeports: A Game-Changer for the Energy Transition 🌍 I'm thrilled to witness the momentum building around Scotland’s two new green freeports— Inverness & Cromarty Firth Green Freeport and the newly launched Forth Green Freeport. These developments are not just promising for the energy transition and decarbonisation efforts but are also reshaping the landscape for industries involved in asset integrity and beyond. The interest from global players and diverse supply chains underscores the strategic importance of these hubs. As Calum MacPherson, CEO of ICFGF, mentioned, the unprecedented engagement spans everything from offshore wind giants to environmental consultants and recruitment firms. This breadth is a clear indication of the collaborative effort required to drive innovation and ensure the safety and reliability of these ground breaking projects. For those of us in the NDT and Inspection sector, the opportunities are immense. The proximity of these deep-water ports to key offshore wind development areas in the North Sea, coupled with the tax incentives provided, significantly reduces risk and opens doors for new technologies and methods in asset integrity. As FGF continues to establish Scotland's largest platform for offshore renewables, the progress on their manufacturing hub and deep-water facility is a testament to the region’s commitment to leading the global energy transition. #Scotland is positioning itself at the forefront of offshore renewables, and the role of asset integrity will be crucial in ensuring the success and longevity of these ambitious projects. The future is bright, and the potential for growth and innovation in our sector has never been more exciting. Find out more 👉 https://ow.ly/Oiiv50T26yH DM or email me at [email protected] to see how Applus+ can help #ndt #oilgas #inspection #eemua #technology #energy #future

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Oil & Gas Industry has been on its knees since 2013, certainly no "windfall profits" these days, most contractors are struggling to stay profitable. It won't be such a good political story when we start having power outages because renewables can't keep pace with global energy demand. If Governments are set on killing O&G they'd better start investing in Nuclear or equivalent as renewables are only a small part of the future energy solution.

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Hopefully our collective governments will see the sense in supporting our oil and gas now? This approach by both Labour and SNP will no doubt send our energy bills through the roof and our energy security put at huge risk? All for mixing it up with renewables but that’s it “a mix”! Only this week it was announced that investors are turning back to oil and gas given the poor returns from wind generation. So while we uphold a friendly coexistence with renewables and indeed our oil and gas operators continue investing in the sector; is it not high time our so called politicians wakend up and smelt the coffee and embraced the importance of our industry? To ignore these messages is surely a sign of their complete arrogance and ignorance of reality? Mix it up - but keep it and maintain it!!

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Fascinating read, one could argue that the energy price increase in 2022 wasn't 100% attributable to the Ukrainian Crisis, you could argue it was inflicted by the UK government's drive to a lower carbon economy. But nevertheless a 25% Energy Profits Levy was introduced in '22. The current UK government has increased the EPL to 38% (increasing the effective tax rate for UK oil and gas companies to 78%, one of the highest in the world) and extended it to 2030. My conclusions: 1) any 'windfall tax' is regressive in a sense that it discourages enterprise, as most people go into business to make a profit; 2) no tax is ever temporary; and 3) energy security is a strategic aim for any country; therefore the question is justified; why is the UK government hell bent on smashing this sector without having an alternative readily in place?

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A Landmark Collaboration: Shell and Equinor Unite in the UK North Sea. The UK North Sea energy sector is poised for significant change with Shell and Equinor announcing plans to combine their UK offshore oil and gas operations. The resulting joint venture, based in Aberdeen, will become the largest independent producer in the region, focusing on enhancing domestic energy production and reinforcing energy security for the UK. In a basin facing natural production decline, this partnership reflects a strategic effort to optimise the recovery of remaining resources. By merging expertise and portfolios, the collaboration aims to extend the operational lifespan of key oil and gas assets, ensuring their continued contribution to the nation’s energy needs as part of a carefully balanced energy transition. The venture is projected to deliver substantial output, exceeding 140,000 barrels of oil equivalent per day by 2025, with operations spanning a range of significant fields such as Mariner, Buzzard, Shearwater, and Schiehallion. Its establishment highlights the growing importance of collaboration and innovation in sustaining the energy industry amidst evolving challenges and priorities. As the North Sea continues to adapt, partnerships like this underscore the resilience and adaptability of the sector. At Chimera Advisory, we are actively tracking how such developments shape opportunities across the oil and gas landscape. #energysectoruk #shell #equinor #northseaoil #aberdeen

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Shell and Equinor are placing their UK North Sea assets in a JV. It’s one more sign of how big oil & gas investments are changing. On Thursday, Shell and Equinor announced that they’ll “create the UK’s largest oil and gas company”. Specifically, they’re combining their UK North Sea assets and placing them into a joint venture (JV). Here are some details on production from the press release: “In the UK, Equinor currently produces approx. 38,000 barrels of oil equivalent per day; Shell UK produces over 100,000 barrels of oil equivalent per day. The new company is expected to produce over 140,000 barrels of oil equivalent per day in 2025.” If you’re looking for key phrases in the press release, this one certainly qualifies: “The new company will be more agile, focused, cost-competitive and strategically well positioned to maximise the value of its combined portfolios on the UK Continental Shelf.” It’s this verbiage that signals the changing nature of oil & gas investment worldwide. We’re moving away from the admittedly brief era where major integrated oil companies were trying to balance the totality of their legacy oil & gas businesses with broad-based ventures into the low carbon space. Now, the largest oil companies are more targeted on both ends of the spectrum. On one side, they’re divesting non-core oil & gas plays, like Equinor and Shell are effectively doing with their UK North Sea assets. They want to reduce potential targets for whatever capital they’ll ultimately deploy toward future oil & gas production. They want the highest leverage oil & gas opportunities available, where the smallest amount of capital will go furthest in securing meaningful production into the future. At the same time, these major oil & gas companies are showing more discretion in their low carbon investments. In the back half of 2024, we’ve had multiple reports of Shell, bp, and Equinor all reducing renewables-focused investments and workforces. In today’s market environment, oil & gas investments are generally more profitable than low carbon investments. But shareholders assign higher earnings multiples to renewables businesses, given the expectation that renewables will play a larger role in the future global energy mix. Major oil & gas companies are thinking deeply about how to walk this tightrope. They’re seeking the right balance between deploying cash toward their traditional oil & gas focus, adjacent low carbon areas where they believe they can make a contribution, and transfers to shareholders. You can see how early we are in this phase of the game, given the relatively rapid swings in the postures of oil & gas majors. This UK North Sea JV is one of the latest examples.

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Electrons, electrics and elections? Thanks go to team EIC (Energy Industries Council) and the post election analysis offered yesterday in Aberdeen by Neil Golding, Rebecca Groundwater, Ann Johnson and Derek Christie - as chaired by Allister Thomas. Making an economic and environmental success of the Energy Transition involves an intricate web of factors that need to be brought together. It is pan industrial and, crucially, not just a discussion for policy makers and developers/Operators. The supply chain is where the jobs truly lie and where a Just Transition will or won’t happen. Key takeaways from this event? 1) We need to be talking as an integrated energy sector. There is too much at risk for disparate messaging 2) The supply chain has deep, existing and future concerns and continues to need to be heard 3) Numerous parties are working to engage the new UK government and we will look to co-ordinate 4) Timing is everything. Windows of (remaining) opportunity are getting tighter all the time 5) Fun fact - Emerson started out as (and still are) a manufacturer of electric fans. See. I’m not a complete fun sponge.

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UK Election causes waves on the north sea. With the UK elections on the horizon, the timeline for the first oil from the major Buchan redevelopment project is shifting to late 2027. So, what does this mean for the industry and stakeholders? Jersey Oil & Gas (JOG) reveals that the Buchan project, a significant field on the UK Continental Shelf, is adjusting its timeline. NEO Energy, Serica Energy, and JOG are closely monitoring the upcoming elections, hoping for fiscal clarity to greenlight their ambitious plans. The elections could bring crucial fiscal policies that will determine the financial attractiveness and feasibility of the project. Despite the delay, work is moving forward with a second offshore survey starting soon and major contract awards which are expected in 2025. This project promises not only to bolster the UK's energy transition with low-carbon solutions but also to create highly skilled jobs. How do you think the UK election will affect the Energy Industry? - Comment Below

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Balancing The Books Vs. Future Energy: Will UK Tax Policy Sink The North Sea? A consultant with significant experience in the energy sector is raising concerns about the UK's proposed increase in petroleum taxes for North Sea oil and gas activities. Stifel, a well-respected wealth management and investment banking firm, warns that this policy could backfire, jeopardizing future investment and ultimately harming government revenue in the long run. This situation highlights the crucial challenge of balancing short-term fiscal goals with a sustainable energy future. Key Points: ✅Tax Hike Threat: Stifel, a wealth management and investment banking firm, is questioning the UK's plan to raise windfall taxes on North Sea oil and gas activities. ✅Double-Edged Sword: While aiming to boost government revenue, these tax increases may deter future investments in exploration and production, leading to a potential decline in tax revenue over the long term. ✅Industry Uncertainty: Increased taxes create uncertainty for investors, potentially hindering the development of new projects and impacting energy security goals. Food for Thought: Is there a sweet spot for taxation that maximizes revenue while maintaining a healthy investment environment for the North Sea oil and gas industry? How can the UK balance short-term fiscal needs with long-term energy security and sustainability goals? Share your thoughts in the comments! #NorthSea #EnergyPolicy #OilAndGas #GovernmentRevenue #Investment #Taxation #Sustainability #EnergySecurity

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December is usually a busy time for M&A deals in the North Sea and it seems 2024 is no different with Shell UK and Equinor UK announcing plans to form a new integrated joint venture. With around 1.7bn of 2P/2C resources and production forecast to climb to over 200 kboe/d by 2030 (contingent on pre-production project delivery) the new entity will be the largest player in the UK North Sea by some distance. There is no portfolio overlap but the new entity will hold stakes in many of the UK’s highest quality assets such as; Clair, Mariner, Schiehallion, Penguins, Buzzard and Shearwater. Add in the future upside from Rosebank, Victory and Jackdaw (near-term) and Tornado, Pensacola (longer term) along with a wide range of exploration licenses and it makes for a compelling proposition. Fiscal synergies and an ability to utilise Equinor’s significant UK tax loss position adds to the value of the transaction. Keep an eye out for more Lens analysis from Wood Mackenzie shortly followed by an in-depth Deal Insight. https://lnkd.in/erqgaMrw https://lnkd.in/esMfmMeQ #Northsea #UKCS #upstream #deal #growth

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Although bp's decision to cut oil and gas output by 25% by 2030 has sparked massive debate, is anyone really surprised? The UK alone relies on oil and gas for 75% of its total energy, currently importing 40%. How much will this rise over the next few years in our quest to "save the planet"? Across the entire UK, 17.1% of households are in fuel poverty (3.26 million in England alone). The UK has already managed to make basic energy a luxury for millions, quite the achievement for a first world country. With these stats in mind, BP’s decision to maintain oil and gas output can be considered a good thing. When so many people are struggling to afford basic heating in the first world, cutting energy production only drives prices higher and makes life even harder for those already on the edge. In regions like sub-Saharan Africa, 600 million people are still lacking access to electricity. Oil-powered generators are the only means to keep life-saving equipment like incubators and ventilators operational. These resources are also critical for pumping and purifying water in regions where clean drinking water is a struggle. It’s not all doom and gloom, BP’s decision reflects a simple truth: we need balance. Oil and gas aren’t going anywhere anytime soon. They’ve been the backbone of affordable, reliable energy for decades, and they can't just be replaced overnight. Instead of pushing for drastic cuts that could hurt people, we should be looking at how to make oil and gas cleaner and more efficient. This industry has adapted time and again, and there’s no reason it can’t continue to evolve in a way that works for everyone. https://lnkd.in/eeEq27Nq. #OilAndGas #EnergySecurity #FuelPoverty #BPEnergy #GlobalEnergyNeeds #EnergyForTheFuture

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