Brexit Could Cost Gas and Oil Sectors 500 Billion Pounds

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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