U.S. President-elect Donald Trump has reignited debates over Britain’s energy policies by urging the country to “open up” the North Sea for more oil and gas exploration.
His criticism targets the Labour government’s Energy Profits Levy (EPL), a windfall tax that has been a point of contention among energy producers and policymakers alike.
Trump’s comments follow a report on Apache’s planned exit from the North Sea by 2029.
The Texas-based oil and gas producer cited the EPL as a major factor in its decision, claiming the policy has rendered its U.K. operations uneconomical. In a social media post, Trump said, “The U.K. is making a very big mistake. Open up the North Sea. Get rid of Windmills!”
The Labour government’s windfall tax, currently set at 35% but slated to rise to 38%, is aimed at funding Britain’s transition to renewable energy.
Labour leaders argue that the tax is essential for reducing reliance on fossil fuels and bolstering energy security. Prime Minister Keir Starmer has actively promoted offshore wind projects, as evidenced by his recent visit to a wind farm in Wales.
UK’s offshore wind sector faces challenges, Trump demands a return to fossil fuel focus.
Critics of the EPL, however, warn of its potential to deter investment in the U.K.’s energy sector. Industry trade body Offshore Energies UK highlighted the country’s dependence on energy imports, which currently meet almost 40% of domestic demand.
“To ensure secure and affordable energy, we need a diverse energy mix, including oil, gas, and offshore wind,” a spokesperson said.
Meanwhile, the North Sea remains central to Europe’s renewable energy ambitions. Despite its potential as a green energy hub, the offshore wind sector faces mounting challenges, including rising costs and supply chain disruptions.
Energy giants like Shell and BP have been reticent about Trump’s remarks, with Harbour Energy declining to comment.
The clash between Trump’s call for increased fossil fuel production and Britain’s green energy initiatives underscores the complexity of balancing economic, environmental, and energy security priorities. As Britain navigates this critical juncture, the global spotlight remains firmly fixed on its energy policies.
