Tax issues raised by the government have been affecting the performance of oil and gas industry. The Chancellor, George Osborne’s decision to raise the supplementary tax on North Sea oil production from 20% to 32%, to fund a cut in fuel duty destroyed the confidence of North Sea.

The UK’s company is second-largest oil-producing region in the world after Saudi Arabia. Chief Executive of Endeavour International, Bill Transier believes that North Sea is a national treasure for the UK and the policies of the government are destroying it.

Malcolm Webb, Chief Executive of industry group Oil and Gas UK said that the tax hike has damaged the confidence of investors in the company. Most of the members have been forced to reappraise their decision of investing in the company due to increase in taxes.

A recently conducted survey has claimed that about 50% of the respondents believe that the confidence of investors hand performance of the company has declined due to the tax increase.

Experts from leading oil companies believe that the politicians seem to be ignorant of the facts. They believe that the taxes should be fair and reasonable.