Why the UK Generates Less Per Barrel Than Norway
Even though both nations share a similar headline profit tax rate (78%), the UK historically captures significantly less revenue per barrel (roughly $11 compared to Norway's $30). This gap exists because:
No Direct Equity: The UK does not own minority or majority stakes in individual fields (unlike Norway's SDFI system managed via Petoro).
No National Champion Dividends: The UK does not own a commercial operator equivalent to Equinor to pay massive corporate dividends directly into public coffers.
Deductions & Allowances: Generous capital allowances and decommissioning relief mean actual effective collections depend heavily on company spending and fluctuating market prices.