Donald Trump has called on Sir Keir Starmer to “open up” the North Sea and “eliminate windmills” as the incoming president criticised the UK Government’s energy strategy.
In a passionate social media post, Mr Trump argued that the UK is making “a very big mistake” by moving away from oil and gas, directly opposing his “drill, baby, drill” promise.
His remarks come as numerous operators are exiting the North Sea and abandoning the UK in protest of the Government’s windfall tax.
Among those departing is the American oil and gas company Apache, which Mr. Trump explicitly mentioned in his Friday Truth Social post.
Concerns about the future of the North Sea have grown since the Labour Party came to power, with Energy Secretary Ed Miliband prioritizing the achievement of clean energy by 2030.
The Government’s emphasis on renewable energy sources, such as offshore wind, has created friction with Donald Trump, who has pledged to boost oil and gas production in the US upon his return to the White House later this month.
In a post on Truth Social, Trump declared, “The UK is making a very big mistake. Open up the North Sea. Get rid of windmills!”
Chancellor Rachel Reeves announced in the Budget her intention to raise the windfall tax on North Sea oil and gas companies from 35% to 38% and to extend the levy by an additional year.
This announcement has prompted several North Sea producers to warn that the increased tax rate could lead to a significant decline in investments, with some companies choosing to exit the region entirely.
Harbour Energy, the largest producer in the North Sea and responsible for approximately 15% of Britain’s oil and gas, has cited the tax burden as the reason for halting its investments in the UK.
Last year, the company reported an effective tax rate of 102% due to the windfall tax, which reduced its nearly $1 billion (£810 million) profit to an $8 million loss.
Meanwhile, US oil giant Exxon completed its exit from the North Sea in July of last year. In October, Deltic Energy also announced it would sell its North Sea assets, concluding that the UK is no longer an attractive investment destination.
The downturn in the North Sea comes as companies reevaluate their investments in offshore wind energy. Ørsted, which operates twelve wind farms in the UK, recently cut hundreds of jobs after incurring losses of around £2.2 billion in 2023.
Furthermore, it was revealed in December that British consumers had spent £1 billion to temporarily shut down wind turbines last year because the grid struggled to manage excess power. Official figures indicate that wind power curtailment reached approximately 6.6 terawatt hours (TWh) in the first eleven months of 2024, up from 3.8 TWh for the entire previous year.
Curtailment occurs when wind turbines are paid to turn off during periods of high winds to prevent the power grid from being overwhelmed. The costs associated with this policy are passed on to households and businesses through their energy bills.
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