§ Mr. SalmondTo ask the Chancellor of the Exchequer (1) what the expected revenues from the North Sea are likely to be for 2002–03 based on an oil price of(a) $10, (b) $15, (c) $25,(d) $30 and(e) $35 a barrel at current US/UK exchange rates; [59398]
(2) what the expected revenues from the North Sea are likely to be for 2003–04 based on an oil price of (a) $10, (b) $15, (c) $25,(d) $30 and (e) $35 a barrel at exchange rates of £1/$ I.40; [59392]
(3) what the expected revenues from the North Sea are likely to be for 2002–03 based on an oil price of (a) $10, (b) $15, (c) $25, (d) $30 and (e) %35 a barrel at exchange rates of £1/$1.50; [59400]
(4) what the expected revenues from the North Sea are likely to be for 2002–03 based on an oil price of (a) $10, (b) $15, (c) $25, (d) $30 and (e) $35 a barrel at exchange rates of £1/$1.40; [59399]
(5) what the expected revenues from the North Sea are likely to be for 2003–04 based on an oil price of (a) $10, (b) $15, (c) $25, (d) $30 and (e) $35 a barrel at current US/UK exchange rates; [59391]
(6) what the expected revenues from the North Sea are likely to be for 2003–04 based on an oil price of (a) $10, (b) $15, (c) $25, (d) $30 and (e) $35 a barrel at exchange rates of £1/$1.50. [59393]
§ Dawn PrimaroloRevenue is dependent on the price of oil, the exchange rate and the levels of production and expenditure. Decisions on levels of production and expenditure will be taken by companies on the basis of actual and expected prices. A significant and sustained change in oil prices would lead to different levels of production and expenditure. The yield will also be affected by differential movements in gas prices relative to oil. By way of an estimate, at current levels of planned production and expenditure, at an exchange rate of £1/$1.40, a movement in the oil price of $5 could he expected to affect revenue by about £2.2 billion in a full year. At an exchange rate of £1/$1.50, a similar movement would affect revenue by about £2.0 billion in a full year. These estimates assume that gas prices would move broadly in line with the price of oil.