Windfall tax: how the North Sea is churning out cash for oil and gas barons

Industry expected to report near-record cashflows thanks to rising gas prices, low wind generation and Chinese demand

Bumper shareholder payouts, soaring profits, booming asset valuations: the oil and gas industry has bounced back from the depths of the pandemic with a vengeance.

After a difficult 2020, when plunging demand led at one point to negative prices, crude recovered in 2021 and wholesale gas prices have soared in Europe and the UK. Gas has risen as much as tenfold to new all-time highs, due to factors including low storage capacity, strong Chinese demand and low wind generation during the summer.