Donald Trump Urges UK to ‘Eliminate Windmills’ and Calls Raising Windfall Tax on North Sea Oil a ‘Significant Error’ | Financial News
Donald Trump has commented that the UK is making “a very big mistake” regarding its fossil fuel policy and should “get rid of windmills”.
In a post shared on his social media platform, Truth Social, on Friday, Mr. Trump referenced a report from November about a US oil producer withdrawing from the North Sea, a key oil-producing area off the coast of Scotland.
“The UK is making a very big mistake. Open up the North Sea. Get rid of windmills!”, the former US president stated.
The Texan oil firm Apache mentioned it would exit the North Sea by 2029, partially due to the rise in windfall tax affecting fossil fuel producers.
The CEO of Apache’s parent company, APA Corporation, expressed in early November that the required investments to meet UK regulations, along with the financial burden of the energy profits levy [windfall tax], rendered hydrocarbons production uneconomic beyond 2029.
John Christmann, the chief executive, emphasized that “substantial investment” will be essential to adhere to regulatory standards.
Mr. Trump campaigned with the slogan “drill, baby, drill”, promising to boost oil and gas production during his anticipated second term.
In a recent budget announcement in October, UK Chancellor Rachel Reeves increased the windfall tax on energy producers to 38%.
This tax, known as the energy price levy, is an increase from 25% introduced by Rishi Sunak in 2022, a response to surging energy prices after Russia’s invasion of Ukraine.
A number of oil and gas companies reported record profits due to the increased prices.
The tax aims to assist households facing high gas and electricity bills amid an ongoing cost of living crisis.
Apache is among several firms that have adjusted their North Sea operations as a result of Labour’s policy.
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