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North Sea Decline

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Declining oil output has a direct economic impact upon British citizens through lower tax revenues.

Average oil production fell by 940,000 barrels between 1999 and 2005.

Assuming an average oil price of $60 a barrel and using some back of the envelope calculations, that would work out at £33.82 per barrel.

In this scenario, the UK would lose an average of £31.7m a day, equivalent to £11.6bn a year.

This would translate into an annual loss per person of £193.38.

Assuming the £193 is for every UK person, the actual tax burdon to be made up by every working person is more like £600 annualy

Just another nail in the coffin of UK Plc.

Edited by munimula

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Interestingly, having a large amount of natural resources seems to correlate poorly, or negatively, with economic success.

India & China are both relatively poor in resources compared with their size, but they are growing rapidly due to developing their human capital.

Nigeria, Saudi & Zimbabwe all have huge natural resources but their economies are stagnant or shrinking in the medium-term (taking into account the recent spike in income due to oil prices).

The availability of 'free' money from nat resources seems to stifle creativity and productivity - you don't need to try so hard to achieve a certain level of development.

Maybe it will be good for the UK to lose North Sea oil - we could have a burst of creativity and become world leaders in nuclear power generation, alternative forms of energy generation & storage, and efficient-usage.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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