U.S. President-elect Donald Trump has called on Britain to “open up” the North Sea, accusing the country’s Labour government of “making a very big mistake” with its energy tax policy. The comments come in response to a report about APA Corporation unit Apache’s plans to end its operations in the North Sea by the end of 2029.
The Texas-based company said in an SEC filing last year that continued production in the U.K.’s North Sea had become uneconomical due to the impact of Britain’s windfall tax, a policy officially known as the Energy Profits Levy (EPL). The U.K. government had increased the windfall tax to 38% and extended its end date to March 2030, with the revenue generated to support Britain’s transition away from fossil fuels.
Trump, who posted his comments on social media platform Truth Social, urged the U.K. to “get rid of Windmills” and instead “open up the North Sea”. Britain’s ruling Labour Party has maintained that the windfall tax is necessary to bolster the country’s energy security and independence.
However, industry experts have pointed out that the North Sea is also regarded as one of Britain’s best sources of consistent offshore wind energy, and several European countries have pledged to turn the area into Europe’s biggest “green power plant”. A spokesperson for U.K. offshore energy trade body Offshore Energies UK argued that Britain needs a diverse energy mix from the North Sea, including oil, gas, and offshore wind.
The spokesperson also noted that the country is currently reliant on energy imports for almost 40% of its domestic energy demand, and that attracting investment across the energy mix is essential to meet the nation’s energy needs and keep jobs, firms, and supply chains in the U.K.