Wednesday 5th December 2012
Anthony Lobo, KPMG UK Head of Oil and Gas said:
"Government's plan to consult on an appropriate fiscal regime for shale gas exploration is a positive sign for the industry. The UK has been seen as a negative place to invest recently due to very high levels of fiscal uncertainty. The tax increases in 2011 resulted in lowest levels of investment in years. Production also plummeted by 19% in 2011 predominantly as a result of the increase in supplementary charge, this drop negated any tax revenues the government hoped to realise.
The announcement today signals the government's intent to support investment in Oil and Gas. Coupled with the wider measures expected in the Gas Generation Strategy this should help diminish the uncertainty that has held back investment in the wider sector.
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