Oil & Gas UK Economic Report 2014

Figure 27: Average Unit Operating Cost

18

16

1

14

12

10

2

8

6

3

4

2

Unit Operating Costs (£/boe) - 2013 Money

4

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Oil & Gas UK

5

Figure 28: Marginal Rates of Tax

6

100

90

7

80

PRT Paying Fields

In Receipt of Brownfield Allowance

70

8

60

Non-PRT Paying Fields

50

Fields in Receipt of a Field Allowance

40

30

Marginal Tax Rate (%)

20

N.B. Field allowances are value limited and, once the value has been fully used, the field will be subject to the normal rate of tax at 62%, or 81% for a PRT paying field

10

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Oil & Gas UK

49

ECONOMIC REPORT 2014