What Are the Implications of Using Tax Credits and Allowances for CO2 Sequestration in Marginal Fields?
Article from: OGEL 4 (2006), in Taxation
Abstract
CO2 Sequestration is already being used in many marginal fields to encourage recovery of reserves. This paper shall evaluate the implications of utilizing various tax credits and allowances in the UKCS to encourage environmental standards in the oil industry while at the same time rewarding companies who decide to use CO2 sequestration to increase profits in a more environmentally friendly manner. The conclusion will be that application of tax credits and allowances for CO2 sequestration activities will result in increasing the neutrality of UKCS tax regime by taxing ...