Crude Oil and Gas Drilling Demand
Concerns Over North Sea Shale Companies' Withdrawal
Continued Move Away from Eco-Friendly Energy
Donald Trump, the President-elect of the United States, has urged the UK government to remove North Sea wind turbines and drill for oil and gas.
On the 3rd (local time), Trump posted on his social networking service (SNS) Truth Social account, "The UK is making a big mistake," and added, "Open up the North Sea and get rid of the wind turbines." Along with this, he attached a link to an article stating that Apache, a US shale exploration company, is withdrawing from the North Sea due to the windfall tax.
This was a criticism of the UK government's policy to reduce fossil fuels such as oil and gas and transition to eco-friendly energy. The UK has set a goal to achieve carbon neutrality in the power sector by 2030 and is trying to increase renewable energy generation capacity. Last year, it announced an increase in the windfall tax on North Sea oil and gas producers from 35% to 38%, and extended the tax period by one year.
On the other hand, Trump has pledged to repeal drilling-related regulations and increase oil production within the US. He has also continued his anti-eco-friendly energy stance by nominating Chris Wright, founder and CEO of Liberty Energy from the shale industry, as Secretary of Energy.
Due to the UK government's windfall tax, companies already producing oil and gas in the North Sea are withdrawing. UK oil and gas company Harbour Energy is attempting to sell its stakes in North Sea oil fields. The largest US energy company, ExxonMobil, completed its withdrawal from the North Sea region in July last year.
In contrast, wind power complexes in the North Sea are increasing. Last year, a total of nine countries, including seven European Union (EU) countries, Norway, and the UK, including France, set plans to significantly expand wind power capacity in the North Sea to reduce dependence on Russian gas and cut carbon emissions.
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