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Offshore Energies UK (OEUK) has warned that immediate reform of the Energy Profits Levy (EPL) is needed to safeguard jobs, investment and energy security, after Ineos confirmed it will cease investing in the UK.
The decision follows the closure of its Grangemouth refinery, costing 430 jobs, with the firm diverting £3 billion of future investment to the United States.
David Whitehouse, CEO of OEUK, said:
There is no time to lose – jobs are being lost today. The offer from industry is clear – reform to this tax now to protect UK jobs, investment and the economy. The North Sea has been the powerhouse of the UK’s industrial success and prosperity and with the right fiscal and economic policies it can be the platform for an era of economic success.”
OEUK’s latest Economic Report highlights the UK now imports more than 40% of its energy, with imported fuels carrying higher carbon footprints and reducing domestic value.
It warns that as many as 1,000 oil and gas jobs a month are being lost – a trend that could persist to 2030 without policy change.
Proposed reforms to the EPL would add £137bn to the UK economy by 2050, secure £41bn in investment, support 23,000 additional jobs, and unlock £12bn in tax receipts.
Whitehouse added: “What happens to the North Sea does not stay in the North Sea. It ripples across sectors through Aberdeen, Grangemouth, Humberside, Teesside, Tyneside, East Anglia, the Northwest. We risk an industrial contagion.”
Other operators are also withdrawing, with Apache announcing a North Sea exit by 2029, and Chevron preparing to follow. By contrast, Norway continues to licence alongside renewables, maintaining competitiveness.
Greg Jackson, CEO of Octopus Energy, said: “Homegrown fossil fuels should continue to play a key part in the UK’s energy mix… If we’re going to produce gas then I’ve got no problem in using local stuff.”
North Sea jobs on the line right now warns OEUK appeared first on Energy Live News.