If You Want to Grasp Where Kamala Hassis Would Take America, Look Across the Pond

There is no better example of the utter stupidity behind leftist politics than what's happening in the UK right now. The Conservatives had years and years of opportunities to set things right and, just like our Republican establishment here in the United States, it kept punting when it was not doing "me too” policies, so the frustrated Brits threw out the bums to put in new even far worse Labour bums. The latter are now engaged in committing hari-kari on behalf of their nation, because that's what leftists do. It's also Kamlala Harris will do here if elected.

Yes, the UK is in the midst of a slow agonizing death and what's happening to its oil and gas industry tells the story. MSN relates it all with a post curiously titled “Why the Rapid Death of North Sea Risks Leaving Taxpayers on the Hook for Billions.” It's not about the death of the North Sea, but, rather, North Sea oil but my English cousins have always been an odd lot. Regardless, there's lot packed into the writing and some lessons about what will happen here if, God forbid, Kackling Kamala should do the same over here and give us a double-down on the failed Biden-Harris policies.

"File:North Sea Oil Rig (7573694644).jpg" by Gary Bembridge from London, UK is licensed under CC BY 2.0.

A few excerpts are sufficient to show you what I mean (emphasis added). Although this one comes later in the story it is the money quote:

“Having stated it believes UK oil and gas must be kept healthy and productive ‘for decades to come’, the Government is creating an investment environment where the industry is fatally wounded in less than five,” says Wood Mackenzie.

I say that's the most important quote because it reflects exactly what's been occurring under the Biden-Harris administration, lots of talk that sounds semi-reasonable on the surface until one looks specifically at what they've been doing and knowing our nation can't have it both ways. Politicians everywhere, though, that pretending so is the secret sauce to survival the the filthy dog-eat-dog world in which they operate.

The truth, as is being demonstrated in the UK right now, is set out in these paragraphs:

Labour’s tax raid on the UK’s North Sea oil and gas producers risks leaving taxpayers on the hook for billions of pounds more in decommissioning charges than first thought, analysts have warned.

Rachel Reeves’s decision to raise overall taxes to an astonishing 78pc, the highest of any sector, and strip the industry of tax allowances will drive down profits so fast that some smaller companies will run out of cash for clean-ups, says the report.

The warning comes from highly-respected industry analysts Wood Mackenzie, and follows Ms Reeves’s pre-Budget pledge to raise oil and gas production taxes for the fourth time in two years.

The price tag for decommissioning the North Sea’s infrastructure, which includes dismantling pipes and filling old wells, has always been high – but Ms Reeves’ tax raid threatens to put even greater strain on the companies responsible.

That is raising questions over whether the industry can still afford it, and if British taxpayers will be on the hook if they can’t.

The industry looks under greater strain because it faces an increased windfall tax and the loss of the 29pc investment allowance that accompanied it, plus cuts in capital allowances.

Wood Mackenzie warns in a report that some firms will collapse under such massive levies.

“This scenario would wipe-out £19bn or 65pc of capital expenditure, halve UK production by 2030, and all but eliminate industry cash flows by the 2030s.

“The reality could be even worse. Smaller companies would likely fail through lack of cash flow, with implications for partners and the UK Government,” it says in the report.

One consequence, Wood Mackenzie warns, will be that many companies run out of cash for decommissioning.

“Without capital allowances between now and 2030, a new tax regime after that will be irrelevant for many.

“With next to no cash flow smaller companies will succumb, and could default on their decommissioning liabilities with implications for partners and the UK taxpayer.”

…The UK consumes about 70bn cubic metres of gas a year, of which about 32bn comes from the North Sea.

Industry experts predict at least 180 of the UK’s 283 oil and gas fields will shut down by 2030, cutting gas output by 70pc by 2030 under the current tax regime – leaving the UK even more reliant on imports…

“If no new fields come on-stream, production in the UK could decrease by one-third from 2023 levels. This would have dire consequences for the UK oil and gas industry.”…

“I would agree that insolvencies could see UK taxpayers on the hook for costs of decommissioning, which will vastly outweigh any additional revenues generated.

“But the bigger concern is the apparent lack of understanding by the Government on the concept of energy security, with Energy Secretary Ed Miliband appearing to be hellbent on destroying the oil and gas industry.”

Pretty scary stuff and exactly what will happen here if Kamala Harris ever becomes President. She would destroy our nation's energy security to save it; kill our future to save the planet's.

#NorthSea #Climate #Oil #Labour #UK #KamalaHarris