Donald Trump Photo: Nic Antaya / Getty images
On Friday, US President-elect Donald Trump sharply criticised the UK government, accusing it of misguided energy sector taxation policies. This was reported by the Independent with reference to Truth Social.
“The UK is making a very big mistake. Open up the North Sea. Get rid of the windmills!” Trump said on his social media platform.
Background to the application
Trump’s words were a reaction to reports of plans by Apache, a unit of the US oil and gas producer APA, to cease operations in the North Sea by the end of 2029.
Apache said that continuing production in the UK North Sea sector has become economically unviable due to the introduction of an additional tax on energy companies’ excess profits, known as the Energy Profits Levy (EPL).
Last year, the UK government, led by the Labour Party, announced an increase in this tax to 38% from 35% and its extension until March 2030. The funds will be used to help the country transition to renewable energy sources, which, according to the government, will strengthen the country’s energy security.
Harbour Energy, the largest oil and gas producer in the British North Sea sector, as well as energy giants Shell and BP, declined to comment on Trump’s words.
Renewable energy and the North Sea
The North Sea is a key area for the development of renewable energy in the UK, particularly offshore wind power. The UK and a number of European countries are seeking to make this region the largest green energy hub in Europe.
However, the development of the wind energy sector is hampered by rising costs, supply chain disruptions and high interest rates.
A call for energy balance
A representative of the British association Offshore Energies UK stressed that the country needs a diverse energy portfolio, including oil and gas production and renewable energy development.
“Energy production in the UK is at an all-time low, and almost 40% of the country’s domestic needs are met by imports. The best way to ensure affordable and stable energy for consumers is to increase domestic energy production,” he said.
Trump’s calls to “open up” the North Sea and reject wind turbines reflect his consistent support for traditional energy sources. He advocates reducing the regulatory burden on the energy sector and has criticised renewable energy transition strategies as economically burdensome.
His words caused a wide response among political circles and energy companies alike, but the British government’s reaction remains unknown.
