With the British government's announced plan to increase the windfall tax on North Sea oil and gas producers to 38% from 35% and extend the levy by one year, a move to fund renewable energy projects, U.S. President-elect Donald Trump took to his social media platform Truth Social to implore the UK to "open up" the British North Sea and get rid of windmills.
"The U.K. is making a very big mistake. Open up the North Sea. Get rid of Windmills!" Trump's post said.
As Monday, January 20, 2025 grows closer -- inauguration day for the incoming U.S. Administration -- this message resonates through the small but growing U.S. wind farm industry, too.
Trump's post was in response to a report about U.S. oil and gas producer APA Corp's unit Apache's plans to exit the North Sea by year-end 2029. The company expects North Sea production to fall by 20% year over year in 2025.
Oil companies have been steadily exiting the North Sea in recent decades, with production declining from a peak of 4.4 million barrels of oil equivalent per day at the start of the millennium to around 1.3 million boed today.
Meanwhile, the Labor government aims to quadruple offshore wind generation by 2030 to 60 gigawatts.
The North Sea has seen major offshore wind farm development by Britain and European countries, but the rapidly growing sector has had a tough few years as costs ballooned due to technical and supply chain problems as well as higher interest rates, leading many companies to review investments.
The North Sea Transition Authority, Britain's offshore oil and gas regulator, declined to comment about Trump's post. Britain's energy security department did not immediately reply to a request for comment.
Top British North Sea producer Harbour Energy wants to sell stakes in North Sea oilfields and is reviving plans for a U.S. listing, Reuters has previously reported. U.S. oil major Exxon completed its exit from the North Sea region in July last year.
Companies are also reconsidering their investments in offshore wind, or have assumed impairments, due to the rising cost of developing wind farms that can be more than 100 km (60 miles) offshore.
Orsted, the world's biggest offshore wind farm developer, trimmed its investment and capacity targets last year.
(Reuters + Staff)
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