Scotland's North Sea Revenues have rebounded in recent years, mainly due to the Energy Profits Levy
North Sea revenues are driven by taxes on production profits. These 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, broadly equalising the marginal tax rates for oil and gas producers with those in Norway. The Energy Profits Levy now accounts for the majority of North Sea revenues.
In July 2026, First Minister John Swinney raised the Energy Profits Levy with Prime Minister Andy Burnham, arguing that it was "the biggest obstacle to investment in the North East of Scotland".