Trump's call to revive North Sea oil met with mixed reactions
Donald Trump, president-elect of the USA, is calling for increased oil extraction in the North Sea at the expense of wind farms. The new leader of the United States' comment is a reaction to an American oil company's decision to withdraw from the area in the coming years.
"The U.K. is making a very big mistake. Open up the North Sea. Get rid of Windmills!," Donald Trump wrote on his social media.
His comment referred to information provided by the Aberdeen and Grampian Chamber of Commerce, which reported about Apache Corporation's withdrawal from the North Sea.
APA Corporation, which owns Apache, announced that it would cease operations in this area by the end of 2029. The American company expects its production in this area will decrease by 20 per cent this year, compared year-over-year.
Wind turbine tax and company decisions
Apache justified its decision by citing the unprofitability of continued operations due to the so-called wind turbine tax.
According to an announcement from the UK government in October 2024, this tax will be extended by a year, with its rate increasing from 35 to 38 per cent. The money obtained this way is intended to be allocated to projects related to renewable energy.
Experts note that in recent years, many oil companies have been leaving the North Sea, and production has decreased from 700 thousand cubic metres per day at the beginning of the 21st century to about 200 thousand cubic metres per day currently. Harbour Energy, a leading British oil producer, also plans to sell its shares in this region.
Problems with wind farms
Reuters points out that despite the decline in oil and gas extraction, there has been no increase in the number of wind farms or energy production from this source.
Technical problems and supply chain difficulties have forced many companies, including the largest offshore wind farm developer, Ørsted, to lower their investment and performance targets.
The American company Exxon has already ended oil extraction in the North Sea, and Harbour Energy plans to list publicly in the USA. These decisions indicate that the oil sector in the North Sea faces significant challenges, which may impact the energy future of the region.
