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Former President Donald Trump has called for increased North Sea oil production and the removal of wind farms in his latest post on Truth Social.
The statement comes as oil production in the North Sea has seen a significant decline over the past two decades, dropping from 4.4 million barrels of oil equivalent per day in the early 2000s to approximately 1.3 million today.
🚨🇺🇸🇬🇧 “US President elect Donald Trump has called for the North Sea to get rid of Windmills & start drilling”
“Production has declined from a peak of 4.3million barrels to 1.3mill barrels a day”
Imagine not wasting your taxes on inefficient & ineffective marine & wildlife… pic.twitter.com/QdToBcXr3g
— Concerned Citizen (@BGatesIsaPyscho) January 3, 2025
Trump’s comments were triggered by news that APA Corp’s subsidiary Apache plans to withdraw from the North Sea by the close of 2029, with projections indicating a 20% reduction in their production for 2025.
The British government’s decision to raise the windfall tax on North Sea oil and gas producers from 35% to 38% last October, while extending the levy period, has created additional pressure on operators. The increased revenue is intended to support renewable energy initiatives, aligning with Britain’s goal to substantially reduce carbon emissions in its power sector by 2030.
Industry players have expressed concerns that the heightened tax burden could severely impact investment levels. This has prompted several companies to accelerate their departure from the aging basin. Harbour Energy, the leading British North Sea producer, is currently seeking to divest its oilfield interests and revive plans for a U.S. listing. Similarly, ExxonMobil completed its withdrawal from the region in mid-2023.
PRESIDENT TRUMP: "We are going to drill at a level you haven't seen since four or five years ago. We would have been DOMINATING the entire world on energy. We have MORE than anybody else."
DRILL, BABY, DRILL! 🔥🔥🔥 pic.twitter.com/JopsMUE3jM
— Proud Elephant 🇺🇸🦅 (@ProudElephantUS) October 2, 2024
While the North Sea has become a hub for wind farm development by Britain and other European nations, the offshore wind sector has faced significant challenges. Rising costs due to technical difficulties, supply chain disruptions, and increased interest rates have forced many companies to reassess their investments.
The complexities of developing wind farms, particularly those located more than 100 kilometers offshore, have led to investment reconsideration and financial write-downs across the industry. Even Orsted, the global leader in offshore wind farm development, scaled back its investment and capacity targets in the previous year.
