North Sea Revenues
North Sea revenues: the oil & gas breakdown
This chart breaks down North Sea revenues allocated to Scotland by revenue type.
North Sea revenues are driven by taxes on production profits, which in turn are a function of not just oil prices and production volumes but also production costs/bbl. North Sea production volumes have been declining and costs have been increasing as reserves reach maturity - but as oil prices have surged due to the Russia-Ukraine war (and more recently the US-Iran conflict) oil companies have seen a surge in profitability. In May 2022 the UK government introduced the Energy Profits Levy as an additional tax on North Sea production. The Energy Profits Levy now accounts for the majority of North Sea revenues (attributed to Scotland in GERS).