There was a headline in your business pages which could have appeared two years ago ("Tax rises put Shell off funding gas projects", The Herald, May 3).

The article contained the following paragraph: "The comments may disappoint the Chancellor who has introduced a series of concessions since he provoked anger with a surprise hike in the tax rate applicable to North Sea profits in the 2011 Budget."

My only surprise would be if George Osborne had not expected that the likes of Shell would be deterred from investing in the UK sector of the North Sea as a result of his actions. It is not just about the level of taxation. It is about certainty relating to the levying of taxation. In taking the action the Chancellor did, he was always going to undermine the oil and gas industry in Scotland.

Also in 2011, the UK Government chose to stick it to both Shell and Scotland by abandoning the Longannet carbon capture and storage (CCS) project. This would have utilised Shell's depleted Goldeneye gas field and associated infrastructure. Next up for a CCS project decision is the competition between Peterhead (Shell and SSE), again for injection of captured CO2 into a depleted gas field, and the White Rose project in Yorkshire where the CO2 will be injected into a deep saline aquifer. Given Shell's core business is in oil production, and how captured CO2 has been used for enhanced oil recovery in jurisdictions other than the North Sea, my expectation would be that Peterhead would be the frontrunner, if only for Shell's technical know-how. But given that decisions will be made for political reasons I am not holding my breath.

One thing is for sure: if the Scottish Government had full authority over energy, there would not have been the dithering that led to the abandoning of the previous Peterhead CCS project in 2007. BP was a major player in that venture, using its pre-existing infrastructure. Meanwhile, Norway forges ahead in CCS with their own initiatives. So much for Better Together.

David Young,

State Route 681N, Albany, Ohio, USA.