For the current assessment period (2014 - 2020) the university submission dated March 2021 included two key studies from Professor Kemp's research indicating their wider impact for the industry, relevant Government's department, and politicians.
Summary details of Professor Kemp’s case studies are as follows:
- Taxation and Investment in the Maturing UKCS
Professor Kemp’s research publications (with colleagues Linda Stephen and Sola Kasim) over the period 2005 – 2019 informed the oil and gas industry, relevant Government departments, and politicians on several subjects including demonstration of the declining taxable capacity of the industry associated with the maturity of old fields and the generally smaller sized new discoveries. The research work also examined the effects of the changes to the Supplementary Charge and the associated complex allowances. Other research work examined the case for the Transfer of Tax History being incorporated in late field asset transactions. Still other papers examined the effects of capital rationing on investment decision-making in the UKCS.
- Economics of Decommissioning in the UKCS
Professor Kemp’s research papers (with colleagues Linda Stephen and Sola Kasim) over the period from 2004 provided insights into several subjects relating to decommissioning in the UKCS. These included projections of the dates at which fields will reach their economic limits in the period up to 2050 and the profile of the associated decommissioning expenditures. Other studies elucidated the effects of the complexities of the tax systems as it affects the tax relief for the necessary decommissioning costs. A further study examined the effects of various schemes which could be employed to procure financial security for the decommissioning obligations seen from both Government and industry perspectives. Further study measured the cost advantages of repurposing the use of oil and gas assets to incentivise the development of regional cluster schemes for CO2 Capture and Storage.