{"id":301764,"date":"2024-02-14T14:24:38","date_gmt":"2024-02-14T13:24:38","guid":{"rendered":"https:\/\/climatescience.press\/?p=301764"},"modified":"2024-02-14T14:27:40","modified_gmt":"2024-02-14T13:27:40","slug":"labours-north-sea-tax-raid-will-trash-oil-and-gas-production","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=301764","title":{"rendered":"Labour\u2019s North Sea tax raid will \u2018trash oil and gas production\u2019"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Energy experts warn plans to increase windfall taxes will cost far more than they raise.<\/em><\/strong><\/p>\n\n\n\n

Labour\u2019s proposed North Sea tax increases would drive out investment, destroy up to 100,000 jobs and cost the Treasury \u00a320bn in lost revenues, energy experts have warned.<\/p>\n\n\n\n

Analysis by investment bank Stifel suggests Sir Keir Starmer\u2019s plans to increase and extend windfall taxes on the industry will cost the country far more than they raise. The Telegraph<\/a> has the story.<\/p>\n\n\n\n

A separate report by Welligence, an oil and gas analyst, said key UK offshore operators such as Harbour Energy, the UK\u2019s largest oil and gas producer, and TotalEnergies had already cut back investment and others were now likely to follow.<\/p>\n\n\n\n

It follows the launch of Labour\u2019s Green Prosperity Plan last week in the wake of the party\u2019s decision to scrap a pledge to invest \u00a328bn a year in clean energy<\/a>.<\/p>\n\n\n\n

Under the new proposals, Labour hopes to raise an extra \u00a311bn from the UK\u2019s oil and gas industry by increasing and extending the windfall tax, with the funds invested in \u201cclean power to cut bills for families.\u201d<\/p>\n\n\n\n

However, Chris Wheaton, an oil and gas analyst with Stifel, warned in a report: \u201cWe estimate the UK will lose \u00a320bn in tax revenues, with maybe 100,000 jobs at risk, both directly and indirectly employed, and a \u00a340bn reduction in investment between now and 2030.\u201d<\/p>\n\n\n\n

Labour\u2019s proposals for the UK\u2019s oil and gas industry<\/a> generated little discussion because the media and political focus was on the cancellation of its \u00a328bn green investment pledge.<\/p>\n\n\n\n

Sir Keir Starmer has proposed adding 3pc to existing offshore production taxes, slashing investment allowances, banning new drilling licences and extending the windfall tax beyond its current cut-off date of 2028.<\/p>\n\n\n\n

Labour said: \u201cTogether, these changes would raise \u00a310.8bn over the next five years from 2024-25 to help fund the Green Prosperity Plan.\u201d<\/p>\n\n\n\n

However, Mr Wheaton said the overall economic impact would be negative.<\/p>\n\n\n\n

He warned: \u201cThe uncertainty created by threatening new windfall taxes is as bad as the tax itself. The tax is already forcing cancellation of investments. For example TotalEnergies have cancelled drilling plans at the Elgin and Franklin fields [in the North Sea], and Apache has cancelled investments at its Beryl fields.<\/p>\n\n\n\n

Read the full story here<\/a>.<\/em><\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Labour\u2019s proposed North Sea tax increases would drive out investment, destroy up to 100,000 jobs and cost the Treasury \u00a320bn in lost revenues, energy experts have warned.<\/p>\n","protected":false},"author":121246920,"featured_media":301766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Labour\u2019s proposed North Sea tax increases would drive out investment, destroy up to 100,000 jobs and cost the Treasury \u00a320bn in lost revenues, energy experts have warned.","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691826924,691820075,691826922,691826923,691826921],"class_list":{"0":"post-301764","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-green-prosperity-plan","9":"tag-labour","10":"tag-north-sea-tax","11":"tag-totalenergies","12":"tag-windfall-taxes","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0wp1971848.jpg?fit=1600%2C878&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1gva","jetpack-related-posts":[{"id":299809,"url":"https:\/\/climatescience.press\/?p=299809","url_meta":{"origin":301764,"position":0},"title":"Most North Sea oil and gas projects would be \u2018unviable\u2019 under Labour plans","author":"uwe.roland.gross","date":"02\/04\/2024","format":false,"excerpt":"Three-quarters of all the North Sea\u2019s new oil and gas projects would be rendered\u00a0economically unviable under Labour\u2019s tax proposals, industry chiefs have warned.","rel":"","context":"In \"Labour plans\"","block_context":{"text":"Labour plans","link":"https:\/\/climatescience.press\/?tag=labour-plans"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/02\/0AA1mBbLe.jpeg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":209401,"url":"https:\/\/climatescience.press\/?p=209401","url_meta":{"origin":301764,"position":1},"title":"The windfall tax epitomises the Tories\u2019 energy muddle","author":"uwe.roland.gross","date":"07\/20\/2022","format":false,"excerpt":"With\u00a0eleven percent inflation\u00a0on the horizon, the cost of filling a family car\u00a0exceeding \u00a3100, and Ofgem\u2019s price cap set to rise again in October\u00a0to \u00a32,800, former Chancellor Rishi Sunak insisted the Treasury was \u2018using all the tools at [its] disposal to bring inflation down\u2019. But as tax cuts languished untouched on\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-201.png?fit=1200%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-201.png?fit=1200%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-201.png?fit=1200%2C632&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-201.png?fit=1200%2C632&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/07\/image-201.png?fit=1200%2C632&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":399964,"url":"https:\/\/climatescience.press\/?p=399964","url_meta":{"origin":301764,"position":2},"title":"Reeves \u2018faces \u00a311bn bill\u2019 over Miliband\u2019s North Sea shutdown","author":"uwe.roland.gross","date":"09\/04\/2025","format":false,"excerpt":"Rachel Reeves will face a bill of up to \u00a311bn for Ed Miliband\u2019s North Sea shutdown, an energy executive has warned.","rel":"","context":"In \"drilling bans\"","block_context":{"text":"drilling bans","link":"https:\/\/climatescience.press\/?tag=drilling-bans"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMALgHdF2ej733GE-OBSptieZHYyPeIb4m0m-xmExY0p1mc6ZcuFPw4nkGaxQUetd7oKlzEXtObBrDudjwxcLYQp1NVZyKQX8_Fg6G8-GUBwhKAh9rUEAMrWPQ-ypZAQ1MSe4Bur0Ssp4SUbZS_3bMKt_R8vg.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMALgHdF2ej733GE-OBSptieZHYyPeIb4m0m-xmExY0p1mc6ZcuFPw4nkGaxQUetd7oKlzEXtObBrDudjwxcLYQp1NVZyKQX8_Fg6G8-GUBwhKAh9rUEAMrWPQ-ypZAQ1MSe4Bur0Ssp4SUbZS_3bMKt_R8vg.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMALgHdF2ej733GE-OBSptieZHYyPeIb4m0m-xmExY0p1mc6ZcuFPw4nkGaxQUetd7oKlzEXtObBrDudjwxcLYQp1NVZyKQX8_Fg6G8-GUBwhKAh9rUEAMrWPQ-ypZAQ1MSe4Bur0Ssp4SUbZS_3bMKt_R8vg.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMALgHdF2ej733GE-OBSptieZHYyPeIb4m0m-xmExY0p1mc6ZcuFPw4nkGaxQUetd7oKlzEXtObBrDudjwxcLYQp1NVZyKQX8_Fg6G8-GUBwhKAh9rUEAMrWPQ-ypZAQ1MSe4Bur0Ssp4SUbZS_3bMKt_R8vg.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMALgHdF2ej733GE-OBSptieZHYyPeIb4m0m-xmExY0p1mc6ZcuFPw4nkGaxQUetd7oKlzEXtObBrDudjwxcLYQp1NVZyKQX8_Fg6G8-GUBwhKAh9rUEAMrWPQ-ypZAQ1MSe4Bur0Ssp4SUbZS_3bMKt_R8vg.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":277613,"url":"https:\/\/climatescience.press\/?p=277613","url_meta":{"origin":301764,"position":3},"title":"North Sea oil production falls at fastest pace in a decade as Labour fears deter\u00a0investment","author":"uwe.roland.gross","date":"09\/07\/2023","format":false,"excerpt":"North Sea oil production has plunged at its fastest pace in a decade as fears grow over a potential Labour government and Rishi Sunak\u2019s windfall tax deters investment.","rel":"","context":"In \"Government\u2019s windfall tax\"","block_context":{"text":"Government\u2019s windfall tax","link":"https:\/\/climatescience.press\/?tag=governments-windfall-tax"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0a-drilling-rig-in-the-water-with-the-sun-setting-in-the-background.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0a-drilling-rig-in-the-water-with-the-sun-setting-in-the-background.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0a-drilling-rig-in-the-water-with-the-sun-setting-in-the-background.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0a-drilling-rig-in-the-water-with-the-sun-setting-in-the-background.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0a-drilling-rig-in-the-water-with-the-sun-setting-in-the-background.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":402521,"url":"https:\/\/climatescience.press\/?p=402521","url_meta":{"origin":301764,"position":4},"title":"How Ed Miliband cost Britain one billion barrels of North Sea oil","author":"uwe.roland.gross","date":"09\/16\/2025","format":false,"excerpt":"For Ed Miliband, it\u2019s a truly awkward moment. His own statisticians have released data showing that Britain\u2019s North Sea will produce a billion barrels of oil and gas fewer than expected between now and 2050 \u2013 with analysts linking the downgrade to Labour\u2019s imposition of 78pc taxes and a\u00a0ban on\u2026","rel":"","context":"In \"energy industry\"","block_context":{"text":"energy industry","link":"https:\/\/climatescience.press\/?tag=energy-industry"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQNFe22cLcy4vvsiflRwz-QuWoAx2srDMxkjlEV5In7DpggL0p_Wctxk-yQhHgDaQGR5UeKd9OjtkPsEWZV-u2tBYv3nm6cQfnvZJ7ipYqtv6uKu5LTv3sy7wailQvEAwvhS40k5T4htVBKN_lDnz5CglpkZLA-1.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQNFe22cLcy4vvsiflRwz-QuWoAx2srDMxkjlEV5In7DpggL0p_Wctxk-yQhHgDaQGR5UeKd9OjtkPsEWZV-u2tBYv3nm6cQfnvZJ7ipYqtv6uKu5LTv3sy7wailQvEAwvhS40k5T4htVBKN_lDnz5CglpkZLA-1.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQNFe22cLcy4vvsiflRwz-QuWoAx2srDMxkjlEV5In7DpggL0p_Wctxk-yQhHgDaQGR5UeKd9OjtkPsEWZV-u2tBYv3nm6cQfnvZJ7ipYqtv6uKu5LTv3sy7wailQvEAwvhS40k5T4htVBKN_lDnz5CglpkZLA-1.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQNFe22cLcy4vvsiflRwz-QuWoAx2srDMxkjlEV5In7DpggL0p_Wctxk-yQhHgDaQGR5UeKd9OjtkPsEWZV-u2tBYv3nm6cQfnvZJ7ipYqtv6uKu5LTv3sy7wailQvEAwvhS40k5T4htVBKN_lDnz5CglpkZLA-1.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/0AQNFe22cLcy4vvsiflRwz-QuWoAx2srDMxkjlEV5In7DpggL0p_Wctxk-yQhHgDaQGR5UeKd9OjtkPsEWZV-u2tBYv3nm6cQfnvZJ7ipYqtv6uKu5LTv3sy7wailQvEAwvhS40k5T4htVBKN_lDnz5CglpkZLA-1.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":433546,"url":"https:\/\/climatescience.press\/?p=433546","url_meta":{"origin":301764,"position":5},"title":"Miliband’s North Sea Ban: Ideological Madness in the Face of War-Driven Energy Chaos","author":"uwe.roland.gross","date":"03\/23\/2026","format":false,"excerpt":"Miliband maintains that extra North Sea production would make no \u201cmaterial difference\u201d to household bills (prices are set globally) or long-term supply. He frames the policy as essential for the \u201cjust transition,\u201d arguing excessive fossil fuel dependence is the real long-term security risk. 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