British and American tax treatment of UK North Sea oil fields

Journal Article · Thu Apr 01 04:00:00 EST 1982 · Energy J.; (United States)

OSTI ID:5136920

Moose, J S

The United Kingdom's new oil-field tax system is designed to discourage the development of small as well as marginal fields. Future development of smaller fields, which contain a substantial part of the undiscovered North Sea reserves, will depend on crude prices rising faster or a modification of the tax system to reduce the tax and royalty burden. As a result of differing US and UK depreciation schedules, US oil firms may be liable for some US taxes on North Sea oil profits, but the short period of tax liability is unlikely to be a major disincentive. It would be a disincentive to US developers if UK income taxes were made deductions rather than credits for US tax purposes. The extent of the disincentive would depend on whether a company operates through a US or a foreign subsidiary and on whether the company views the deferral of US income taxes as permanent. 3 figures.

• Research Organization: Standard Oil Co. of Ohio, Cleveland
• OSTI ID: 5136920
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 3:2; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ATLANTIC OCEAN
COMPARATIVE EVALUATIONS
EUROPE
FINANCIAL INCENTIVES
GEOLOGIC DEPOSITS
MINERAL RESOURCES
NORTH SEA
OIL FIELDS
PETROLEUM DEPOSITS
RESOURCES
SEAS
SURFACE WATERS
TAXES
UNITED KINGDOM
WESTERN EUROPE