- U.S. President-elect Donald Trump on Friday 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.
- His comments came in response to a report about U.S. oil and gas producer APA Corp. unit Apache's plans to end all its operations in the North Sea by the end of 2029.
- Britain's ruling Labour Party said in October last year that it would increase a windfall tax on North Sea oil and gas producers to 38%, up from 35%, and extend the end date of the policy.
U.S. President-elect Donald Trump on Friday 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.
His comments came in response to a report about U.S. oil and gas producer APA Corp. unit Apache's plans to end its operations in the North Sea by the end of 2029.
The Texas-based company said in a Securities and Exchange Commission 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, or EPL.
"The U.K. is making a very big mistake. Open up the North Sea. Get rid of Windmills!" Trump said on social media platform Truth Social.
Britain's ruling Labour Party said in October last year that it would increase a windfall tax on North Sea oil and gas producers to 38%, up from 35%, and extend the end date of the policy through to March 2030.
The money raised from the windfall tax will be directed to support Britain's transition away from fossil fuels, which the government says will bolster the country's energy security and energy independence.
CNBC has contacted a spokesperson at Britain's Department for Energy Security and Net Zero to ask for a response to Trump's social media post.
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Top British North Sea producer Harbour Energy and British oil giant Shell both declined to comment. Energy major BP was not immediately available to respond when contacted by CNBC.
The North Sea is regarded as one of Britain's best sources of consistent offshore wind energy and several European countries alongside the U.K. have pledged to turn the area into Europe's biggest "green power plant."
The rapidly growing offshore wind sector has endured a torrid time in recent years, however, hampered by rising costs, supply chain disruption and higher interest rates.
A spokesperson for U.K. offshore energy trade body Offshore Energies UK said Britain needs a diverse energy mix from the North Sea, including oil, gas and offshore wind.
"Total energy production in the U.K. is at record lows with the country reliant on energy imports of oil, gas, and electricity for almost 40% of domestic energy demand," an Offshore Energies UK spokesperson told CNBC via email.
"It's essential to attract investment across the energy mix to meet the nation's energy needs and keep jobs, firms and their supply chains here in the UK. The best way to protect consumers and provide secure affordable energy is to produce as much of it as we can in the UK," they added.
