Trump Calls on UK to Reopen North Sea to Oil and Gas Production
A Blow to Renewable Energy Efforts
Former US President Donald Trump has urged the UK to reverse its decision to impose a windfall tax on North Sea oil and gas producers, claiming it’s a “very big mistake.” Trump’s comments come on the heels of Apache’s announcement to cease operations in the North Sea by 2029, citing the tax as the reason.
The Energy Profits Levy: A Barrier to Production
The UK’s Labour government introduced the Energy Profits Levy (EPL) to support the country’s transition away from fossil fuels. However, the 38% tax has made it uneconomical for companies like Apache to continue production in the North Sea. Trump took to social media to express his disapproval, calling for the UK to “open up” the North Sea and abandon wind turbines.
A Setback for the UK’s Green Ambitions
The North Sea is a significant source of offshore wind energy, with several European countries, including the UK, aiming to turn it into Europe’s largest “green power plant.” However, the rapidly growing offshore wind sector has faced challenges in recent years, including rising costs, supply chain disruptions, and higher interest rates.
Industry Reaction
The UK’s Department for Energy Security and Net Zero has been contacted for a response to Trump’s comments, but has yet to provide a statement. Shell declined to comment, while Harbour Energy and BP were unavailable to respond.
The Future of North Sea Production
As the UK grapples with its energy policy, the fate of North Sea production hangs in the balance. Will the UK government reconsider its stance on the windfall tax, or will companies like Apache continue to abandon the region? Only time will tell.
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