Development of UK policy towards oil and gas and their effects

The evolution of policy towards the development of North Sea oil is without precedent in the government of the United Kingdom. In a remarkably short period a complex framework was devised which include arrangements to promote offshore exploration, development and operation; a novel system of taxation and special measures to encourage domestic industry to supply the needs of the oil industry. This chapter is made up of three sections. In the first there is a brief introduction to the evolution of the main policies towards oil and gas. There follows a section in which there is an assessment of these policies with particular attention given to the licensing arrangements, royalty and taxation payments, state participation, and depletion policy. Finally, there is a brief section in which some general conclusions are drawn. (author)