Friday, 6 May 2011

Suprise suprise, guess who is going to suffer from the North Sea tax increase?

The chief executives of gas companies are worried that this tax increase will lead to job losses and an increase in household bills. Great, so in an attempt for the government to gain money, once again, it seems like we have the broadest shoulders!

OK, my little rant aside, 15 chief executives of gas companies have written to the Prime Minister in regards to their worries of such consequences of the tax rise.

The problem here that the chief executives pointed out is that gas projects are just as expensive as oil projects, but while oil is trading at $105 per barrel, companies can only get the equivalent of $49 per barrel for their gas.

The letter was signed by heavyweights such as Centrica boss Sam Laidlaw, BG Group chief executive Frank Chapman, and BHP Billiton’s Marius Kloppers.

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