Britain v. Norway: Which is the most attractive region for drilling?

CHANGES to the tax system are making Britain a more attractive drilling location for oil and gas companies than arch-rival Norway, according to a report published today. Reported scotsman.com

Drilling activity in British waters leapt by 64 per cent year-on-year in the three months to 30 June, compared with a 33 per cent fall in Norway, Deloitte’s quarterly report found.

Existing tax breaks – for heavy oil, high-temperature, high-pressure and small fields – are tipping the balance in favour of investment in British waters, the accountancy firm reported, with measures outlined in the Budget expected to give a further boost to drilling.

Graham Sadler, managing director of Deloitte’s petroleum services group, told The Scotsman: “The post-winter spurt in activity does seem a little bit bigger than normal, so these figures are encouraging.” Full article available to read here

Which region do you think is most attractive for drilling?

Certainly Norway is thought to be a better environment for exploration, with particular thanks to the favourable tax system.. But is Norway preferable for drilling? In particular some small caps may be find it difficult to bring resources to production in the region.

Do you agree?

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