INEOS’ Ratcliffe backs UK carbon tax cuts, calls for more drilling

(WO) — INEOS Chairman Jim Ratcliffe has backed a proposal to scrap UK carbon levies, warning that current policies risk undermining domestic industry and energy security while discouraging oil and gas development.

The comments follow a pledge by the UK Conservative Party to remove carbon-related taxes if it returns to power, a move Ratcliffe said would help restore competitiveness for British industry.

Ratcliffe has previously cautioned that carbon costs in Europe are not applied equally to imports, raising the risk of production shifting overseas and increasing global emissions.

“I thoroughly welcome today’s announcement by Kemi Badenoch.

“Energy is a critical ingredient for all countries today for a number of reasons. In my view these are the three most important.

“First, energy independence. A country MUST be able to keep the lights on, run hospitals and protect its people especially in times of conflict.

“Second, energy competitiveness. Affordable energy is one of the single biggest drivers of economic growth and industrial strength.

“Third, green energy. We must progressively lower our carbon footprint in a way that is practical and sustainable.

“Critically, this must happen in this order.

“All of this points to one obvious conclusion: we should be exploiting our domestic reserves of oil and gas not only the North Sea but also our plentiful reserves of shale oil and gas. Not doing so, while importing vast quantities of energy from abroad, is economic and strategic madness."

The remarks highlight growing concern among industrial leaders that high energy costs and regulatory burdens could accelerate deindustrialization in Europe.

For upstream operators, the comments reinforce calls for increased development of domestic oil and gas resources, particularly in the North Sea and potential UK shale plays, as policymakers weigh the balance between climate targets and energy security.