US companies say big tax increases on energy companies have prompted them to pull out of North Sea oil, prompting past and future presidents to warn Britain is making a “very big mistake”.
President Donald Trump has vowed to increase U.S. energy production in his first term, turning the country into an energy exporter, and to “drill, baby, drill” to keep energy prices low in his second term. Clearly concerned that its allies are falling behind in energy security – the UK is currently Highest energy prices in the world — revealed again, this time in a Truth Social message accusing the UK of killing investment in energy.
in Reply message to announcement US drilling companies are pulling out of Britain's North Sea oil fields because taxes are too high under the left-wing, anti-energy Labor government, Trump wrote. Open up the North Sea. Please remove the windmill! ”
A statement from the Aberdeen and Grampian Chamber of Commerce reveals that Apache Corporation, which has been drilling in the North Sea since 2003, is withdrawing from the UK, citing a so-called “windfall tax” as the reason for the withdrawal. said. Immediately after being elected, the Labor government announced It would “raise the main tax rate on upstream oil and gas activities to 78%.”
Speaking on behalf of Apache Corporation, parent company spokesperson John Christman said: “After a six-month evaluation, we concluded that the investments required to comply with these regulations… combined with the onerous economic impact of an energy profits tax, are pushing hydrocarbon production beyond its limits. ” 2029 will be uneconomic.”
Chamber of Commerce president Russell Borthwick said: “We have been warning for almost two years that a windfall tax would drive capital, investment and jobs away from the North Sea. He said that without urgent changes, “there could be significant damage to the domestic energy industry and its workforce.”
As well as punishing the gas and oil sector, the Labor government that took power in 2024 has committed to a major push for “green” energy, echoing President-elect Trump's comments about “abandoning windmills”. Ta. ”. Labor argues that renewable energy is significantly cheaper than traditional energy sources and that switching to green would be a win-win situation, but these arguments have not been accepted. criticized by critics They argue that renewable energy requires heavy subsidies to survive in the market.
