The cable laying vessel NKT Victoria works off the coast of Marske by the Sea as it lays a cable as part of the Sofia Offshore Wind Farm project on August 17, 2024 in Marske By The Sea, United Kingdom.
Ian Forsyth | News Getty Images | Getty Images
The newly elected president of the USA Donald Trump on Friday he called on Britain to “open up” the North Sea, accusing the country’s Labor government of “making a big mistake” with its energy tax policy.
His comments came in response to a report on the plans of US oil and gas production unit APA Corporation Apache to cease its operations in the North Sea by the end of 2029.
The Texas-based company said in SEC filing last year that continued production in the UK North Sea had become uneconomic due to the impact of the UK windfall tax, a policy officially known as Tax on profit from energy (EPL).
“The UK is making a big mistake. Open up the North Sea. Get rid of the windmills!” Trump he said on the social media platform Truth Social.
Britain’s ruling Labor Party said last October that it would increase the tax on windfall profits for North Sea oil and gas producers to 38%, up from 35%, and extend the policy’s end date to March 2030.
Money raised from corporate tax will be used to support Britain transition away from fossil fuels, which the government says will strengthen the country’s energy security and energy independence.
British Prime Minister Keir Starmer stands near a wind turbine during a visit to the RWE Brechfa Forest West onshore wind farm in Pencader, south Wales on August 20, 2024.
Ben Birchall | Afp | Getty Images
CNBC reached out to a spokesperson for the UK Department of Energy Security and Net Zero for a response to Trump’s social media post.
Shell he declined to comment when contacted by CNBC. Top British North Sea producer Port energy and energy direction BP were not immediately available for comment.
The North Sea is considered to be one of the UK’s best sources of consistent offshore wind power, and several European countries in addition to the UK have it pledged to turn the area into Europe’s largest “green power station”.
The rapidly growing offshore wind sector has withstood stormy weather in recent years, however, hampered by rising costs, supply chain disruption and higher interest rates.
