Thursday 23 February 2023

2022 was a turbulent year for the oil and gas industry that was dominated by the invasion of Russia on Ukraine. This had an immediate effect on the global economy and markets, with commodity prices soaring to record highs and energy security becoming the focus for most countries across Europe. The UK Government succumbed to mounting pressure with the introduction of the Energy Profits Levy (EPL) in May to recover more tax from the ‘extraordinary profits’ being generated by the oil and gas sector. This was increased further in November causing significant uncertainty for E&P investment in the UK. In terms of energy security, Norway is in a more enviable position being self-sufficient for its energy supply and is a net exporter of oil and gas. Europe looked to Norway to fill the volume gaps created by its boycotts and sanctions on Russian hydrocarbons.

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