{"id":61235,"title":"North Sea industry urges Prime Minister to replace windfall tax","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-10-12T06:32:07+00:00","modified":"2026-10-12T06:40:27+00:00","canonical_url":"https://stockmark.it/north-sea-oil-producers-push-burnham-to-scrap-windfall-tax/","markdown_url":"https://stockmark.it/north-sea-oil-producers-push-burnham-to-scrap-windfall-tax.md","json_url":"https://stockmark.it/north-sea-oil-producers-push-burnham-to-scrap-windfall-tax.json","category":"Business","categories":["Business","Companies","Tax"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/10/north-sea-industry-urges-prime-minister-to-replace-windfall-1.png?fit=1536%2C1024&quality=80&ssl=1","format":"news","language":"en-GB","content":"North Sea oil and gas producers are calling on the United Kingdom government to scrap the existing windfall tax and approve two major offshore projects. The industry argues that these measures are essential to unlocking investment and meeting domestic energy needs. Prime Minister Andy Burnham has yet to make a final decision on the controversial Rosebank and Jackdaw projects, which are currently facing legal challenges in Scottish courts on environmental grounds.\n\nA recent report from Offshore Energies UK, known as OEUK, suggests that the United Kingdom could satisfy approximately half of its oil and gas requirements without relying on imports if the government provides greater support to the sector. The organisation emphasises the need to amend the current taxation framework and secure approval for the Rosebank and Jackdaw developments. According to the report, these actions would unlock 111 projects and attract £50 billion in investment. The OEUK states that increasing domestic production could help offset the need for fossil fuel imports, particularly as domestic supplies are currently expected to meet only one-third of U.K. demand until 2050.\n\nThe industry body recommends abandoning the Energy Profits Levy, which is in place until 2030, in favour of a new Oil and Gas Revenue Levy. The proposed levy would be triggered only when prices spike. The OEUK argues that the existing tax has stifled investment in recent years. However, campaigners and environmental groups have raised concerns about the potential impact of such a change. Research conducted for the NGO Global Witness indicates that if oil prices remain at around $100 a barrel, the new levy would raise £8.6 billion less than the current windfall tax by 2030. If prices fall to $70 a barrel, the new scheme would reportedly generate no funds, compared with the £4.6 billion that could be raised under the existing levy.\n\nThe environmental organisation Uplift has criticised the OEUK report, describing it as a fantasy. The group urged Prime Minister Burnham not to listen to what it termed the self-interested demands of oil companies. Uplift director Tessa Khan stated that the North Sea is an ultra-mature basin with very little reserves left. She added that the U.K. has burned most of its gas, and the remaining resources are mostly oil, the vast majority of which is exported and sold on international markets. Khan argued that new drilling would do nothing to bring down bills and would contribute little to energy security.\n\nConversely, Simone Rossi, head of EDF Energy, has voiced support for increased North Sea production. Rossi described new oil and gas projects as a no-brainer that pose no contradiction to the net-zero agenda. She called on the government to greenlight the Rosebank and Jackdaw projects while also accelerating support for heat pumps and electric vehicles. Rossi suggested that locally produced fossil fuels have lower emissions than imported fuels because they do not require long-distance transport. She noted that it will take decades to wean the economy off its dependency on fossil fuels, and that the U.K. should use its existing resources rather than importing them from afar.\n\nPrime Minister Burnham has described himself as open-minded about new North Sea oil licences and has promised to take a pragmatic approach to the sector. During the Makerfield by-election in June, he stated that he was open to new licences. However, scepticism remains within the energy industry and among environmental groups regarding the potential benefits of new drilling operations. A recent analysis by Luke Hatton at Imperial College London suggests that approving the Rosebank and Jackdaw projects would not reduce U.K. bills or improve energy security. Hatton argued that the benefits would be outweighed by long-term economic damage, stating that there would be a strong destruction of economic value beyond what the projects could generate for the U.K. He advocated for doubling down on clean energy technologies instead."}