UK oil group urges Osborne to help the industry out at his next budget
Oil & Gas UK is hoping that the government ride to the rescue of the North Sea oil industry that faces further job losses in the commodities slump
The Telegraph reports that they are asking for the Treasury to take "crucial steps" to support the industry.
It's been estimated that 5500 jobs have been lost in the UK so far with more on the horizon
The oil fields were quite profitable for the Treasury five or six years ago with tax revenues of £11bn in 2010. The expected revenues for 2015/16 are touted at just £130m. UK oil firms can pay up to 67.5% in tax due to additional levies. That compares to 20% for other industries
While tax cuts could be one way for the government to go, it's not likely to help much with revenues down massively due to the collapse of oil prices. But, with the tax revenue from oil down so much, the government could see it as a way of showing they care without it actually costing them much.
On one hand it's hard to show any sympathy for the industry in general as this is yet another case of firms not planning for a rainy day when prices were much higher. On the other, it's hard for the government to argue against help considering what the banks got.
In the bigger UK picture, that's two commodity industries, (steel and oil) that are facing big problems.