With investment in British energy set to hit an all time high, it’s being reported that 2012 could be a very good year for North Sea natural gas and oil.
Reuters reports that up to £5 billion ($7.7 billion) may be raised in tax revenue as a result of investment in British gas and oil, something that would also create jobs across the UK.
New investment will allow companies to explore new locations, with vast untapped resources off the Shetland Islands and in the Central North Sea expected to be utilized.
Tax revenue is also predicted to rise by the agency as a result of rising energy prices. The UK Treasury expects total tax revenue from the oil and gas industry to exceed £13 billion in fiscal 2011-2012. However, Reuters did admit that analysts are warning of falling gas or oil prices if a renewed recession hits.
The forecasts for next year’s British oil and gas comes as the UK’s largest energy companies are slashing prices for consumers. The Guardian reports that Npower, one of the UK’s biggest energy providers, announced plans to cut its prices by five per cent in February following similar moves by giants EDF and Scottish and Southern Energy.