Shell and BP, which produce more than 1.7 billion tons of greenhouse gases a year, have not paid any corporate taxes on oil and gas production in the North Sea for the past three years, according to the company.
Oil giants, with more than five times the annual global greenhouse gas emissions in the UK, are receiving billions of pounds in tax relief and relief for oil and gas production.
A.D. Between 2018 and 2020, Shell and BP did not pay any corporate tax or commodity taxes on North Sea oil projects and demanded nearly £ 400m in tax relief, analyzed in annual “government payments” reports. Observer.
In the same three-year period, it paid dividends more than ቢሊዮን 44 billion to shareholders.
The 35% Petroleum Revenue Tax was canceled in 2016 by then-Chancellor George Osborne and billions of pounds could be paid by taxpayers to oust oil giants.
The North Sea is now one of the most lucrative areas for oil and gas production after government tax cuts to encourage production.
Shell and BP have set a goal of investing in clean energy by 2050 net zero carbon emissions, but the UK says it needs oil and gas from the North Sea and will support thousands of jobs.
Climate advocates are now challenging the UK’s tax administration in the Supreme Court. They want the bill to be scrapped and a ban on oil and gas projects to help reduce carbon emissions in the North Sea.
“It is a shame that we are still one of the most effective oil tax rates in the world,” said Philip Evans, an oil and gas advocate for Greenpeace UK.
For decades, we have been giving billions of pounds in tax relief to companies accelerating climate change.
There are about 180 gas stations in the North Sea and the sector has generated a net tax revenue of ቢሊዮን 360 billion since 1970, 7. 7.2 billion a year.
The United Kingdom has the lowest oil tax rates in the world. According to a January study by research firm Rystad Energy, the United Kingdom is currently the most profitable country in the world for oil and gas mega-projects.
Taxpayers will pay more than £ 18bn to cut off oil and gas infrastructure in the North Sea by 2065 – reducing taxes and offshore corporation tax. Campaigners want the handbook removed and invested in clean energy.
Business writer Kwasi Quarting is facing a legal challenge to taxpayers’ oil and gas operators. It is illegal for a group of environmentalists, Payed to Politute, to hand over the tax to oil and gas companies because they violate the UK’s legal obligation to achieve net zero emissions by 2050. Justice Review The year.
“The government has spent a lot of time supporting oil companies with tax relief and subsidies, said Platform, a platformer for the UK-based Platform Forum, which examines the social and environmental impacts of the global oil industry and supports legal issues. It has had dire consequences for the climate.
Shell and BP face stiff opposition to new projects in the North Sea. A report released last week by Friends of the Earth and the New Economics Foundation confirms that the oil and gas industry is preparing to apply for licenses for 30 offshore projects by 2025.
Shell, the disputed oil field near Shetland, has blocked plans for the Kambo project and holds about 800 meters of oil and is awaiting approval from the Oil and Gas Authority, a government licensing body. Greenpis, which started production in November last year, lost a legal bid this month to revoke BP’s license at the Warlich gas station in the North Sea.
According to a Reuters report last week, Shell’s Jeddah Gas Field, which oversees coastal petroleum, has rejected the Shell’s plan in the North Sea. We are investing billions of dollars in low-carbon energy. The North Sea Transit Agreement, reached earlier this year, also outlines how the sector can reduce emissions based on the government’s net zero targets. The company said it did not pay any corporate tax on North Sea products last year due to tax losses in recent years.
A spokesman for BP said: “All of BP’s North Sea assets are owned by UK tax-compliant companies. Over the years, BP has contributed more than ቢሊዮን 40 billion in tax revenue from the North Sea trade to the UK government.
“In recent years, in line with long-standing UK tax laws, we have paid tax relief on challenging prices, including our recent significant investments in North Sea trade and the reduction in oil prices in 2015 and 2020. North Sea Enterprise Tax.” No.
A UK government spokesman said: “The UK oil and gas industry has paid up to 37 375 billion in production taxes – companies in the North Sea are more than twice as big as other businesses. Reduction of release costs is a fundamental part of the UK tax system.