INDUSTRY WELCOMES UK
OGJ.UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government's annual budget speech.
One measure welcomed by the industry group was support voiced by Chancellor of the Budget George Osborne for "all recommendations of the Wood report," a review of oil and gas work on the UK Continental Shelf (UKCS) aimed at achieving "maximum economic recovery" (OGJ Online, Feb. 24, 2014). Ian Wood, retired chairman of the Wood Group, oversaw work on the review.
OGUK also praised Osborne's commitment, in his "budget 2014 speech" Mar. 19, to "review the whole tax regime to make sure it is fit for the purpose of extracting every drop of oil we can." Malcolm Webb, chief executive of the industry association, called the offshore oil and gas fiscal regime "overly complex, burdensome, and uncompetitive." The industry faces marginal tax rates of 62-81% on oil and gas production, he said.
The trade group further welcomed Osborne's announcement of a new allowance for ultrahigh-pressure, high-temperature fields. The measure will exempt from profits subject to supplementary taxation at least 62.5% of capital expenditure in qualifying projects, according to Webb.
The measure resisted by OGUK concerns increased taxation of bareboat chartering. The group said it will increase day rates for drilling rigs and floating accommodation vessels.
"We fear that this move will drive drilling rigs, already in short supply, out of the UKCS," Webb said.
|March, 18, 11:45:00|
|March, 18, 11:40:00|
|March, 18, 11:35:00|
|March, 18, 11:30:00|
|March, 18, 11:25:00|
|March, 18, 11:20:00|
PENNENERGY - Siemens Gamesa Renewable Energy has secured orders for the supply of 39 onshore wind turbines in France, with aggregate capacity of 104 MW, at five wind farms being developed in the regions of Hauts de France, Grand Est, Burgundy and in Western France.
FRB - Industrial production rose 1.1 percent in February following a decline of 0.3 percent in January. Manufacturing production increased 1.2 percent in February, its largest gain since October. Mining output jumped 4.3 percent, mostly reflecting strong gains in oil and gas extraction.
PLATTS - NYMEX Apr natural gas little changed at $2.678/MMBtu
BAKER HUGHES A GE - U.S. Rig Count is up 6 rigs from last week to 990, with oil rigs up 4 to 800, gas rigs up 1 to 189, and miscellaneous rigs up 1 to 1. Canada Rig Count is down 54 rigs from last week to 219, with oil rigs down 52 to 144 and gas rigs down 2 to 75.