Brexit Could Cost Gas and Oil Sectors 500 Billion Pounds

May 3, 2017 Share Print 0

Brexit would land the oil and gas industry with a half-billion-pound bill if EU exit talks end with the UK leaving on World Trade Organisation rules, Theresa May has been warned.

The costs for trading £73bn worth of oil and gas annually would jump from £600m a year now to £1.1bn in a worst case WTO scenario, analysis for the industry trade body found.

At best, if the UK could strike more favourable tariffs with non-EU countries, the cost of trade might fall to £500m, Oil and Gas UK said.

The group wrote to the prime minister this week to say its members could ill afford further costs that might hamper the industry’s fragile recovery after a two-year slump.

“We are becoming a more globally competitive industry, but we continue to be very sensitive to any additional burdens either in relation to cost, or restrictions on the movement of key personnel required for critical operations,” the body’s chief executive, Deirdre Michie, wrote in a letter to May.

via The Guardian

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.