- BP’s results are aligned with the industry’s performance which benefited from high oil and gas prices that we saw last year.
- The oil industry is cyclical in nature and it is the market, not the energy companies, that sets prices.
- The oil sector is typically subject to a higher government take than other sectors in the economy. The UK is no exception.
- A cleverly designed tax system captures excess profits and at the same time incentivises energy companies to invest more in the sector rather than deterring them from doing so.
“Oil markets: An early peek into 2023“, Dr Carole Nakhle, Jan 2023
“What is the Outlook for Commodities in the Wake of Peak Inflation & Peak Rate Tightening Cycle in 2023?“, Dr Carole Nakhle, Jan 2023
“Outlook for oil and gas markets for 2023“, Dr Carole Nakhle, Jan 2023
“UK expands windfall tax to 35% for oil and gas companies“, Dr Carole Nakhle, Nov 2022
“Shell’s 2022 Third Quarter Profits“, Dr Carole Nakhle, Oct 2022
“Record profits for oil-producers“, Dr Carole Nakhle, Aug 2022