OEUK urges against windfall tax for offshore oil and gas assets crucial to local economy
(WO) — Leading trade body Offshore Energies U.K. (OEUK) urges the Chancellor to use next week’s Autumn Statement to back the U.K.’s homegrown offshore energy sector and make the U.K. an irresistible place for energy investment.
North Sea oil and gas is a strategic economic asset that has provided a national dividend through energy and economic security for the last 60 years. The North Sea and its expert workforce can continue to power the country for decades to come.
OEUK analysis published last month highlighted that the proposals to extend the windfall tax on the oil and gas sector will deter the very investment needed across our energy landscape. There is a more prosperous path for government and Industry. While we use oil and gas, we must prioritize investment in our homegrown production, value in our economy and jobs.
A letter from 46 supply chain companies to the Government has set out the scale of the challenge they face. The Chancellor is urged to use the Autumn statement to support and nurture the ecosystem of small, medium and large companies across the U.K.’s energy mix.
“We recognize that the demands on the Exchequer are challenging. Unlocking economic growth is the solution, and building on industrial strengths is key to our path forward,” said David Whitehouse, CEO of OEUK. "The North Sea is a strategic national asset and must be treated as such. Our homegrown offshore energy sector has powered the U.K. for the past 60 years, and the sector’s firms and skilled people are critical to our energy future as drivers of economic growth.
“We welcome steps to accelerate the deployment of renewable energy, and the recognition that we will use oil and gas for decades to come. Windfall taxes extended on oil and gas producers when no windfall exists deter the very investment that we need across our energy transition. While we use oil and gas, we must surely prioritize investment in our homegrown production, value in our economy and our jobs.
“In the past 100 days, it has been good to see the engagement of our new Government with the proud and innovative workers and firms in our offshore energy industry. The Government has heard from people across the sector, and now decisions will be made.
“On Wednesday, the Autumn Statement will be a marker. We are in a global race for energy investment. Let us choose the path that encourages and attracts it, to build on our national strengths, so the whole of the U.K. can win.”
About OEUK
Offshore Energies U.K. is the leading trade body for the U.K.’s offshore energies industry. Its membership includes over 400 organizations with an interest in offshore oil, gas, carbon capture and storage, hydrogen and offshore wind.
