Trump Demands Cut of North Sea Oil Taxes During Scotland Visit
(MENAFN) During his five-day visit to Scotland on Tuesday, US President Donald Trump urged the United Kingdom to drastically reduce taxes on North Sea oil production, claiming that the current high levies are deterring investment in a valuable national asset.
“North Sea Oil is a TREASURE CHEST for the United Kingdom,” Trump posted on social media. “The taxes are so high, however, that it makes no sense.”
Trump lambasted the UK’s taxation approach, stating, “They have essentially told drillers and oil companies that, 'we don't want you.'”
He pressed for urgent incentives to encourage oil extraction, tweeting, “Incentivize the drillers, FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people,” reflecting his signature US energy policy slogan: “Drill baby drill.”
Currently, companies extracting oil and gas in British waters are subjected to a combined tax burden of about 78%, which includes a 30% corporation tax plus a 38% Energy Profits Levy introduced in 2022 to tax excessive earnings amid rising energy prices.
The UK government initiated a consultation in March on options for replacing this windfall tax when it expires in 2030.
Industry analyses indicate that the North Sea could fulfill nearly half of Britain’s oil and gas requirements until 2050 if fresh projects are launched. Research from Westwood Global Energy Group estimates that up to 7.5 billion barrels remain recoverable from UK waters, representing an economic potential valued at £165 billion ($219 billion).
However, current projections foresee the North Sea producing less than 4 billion barrels over the same timeframe, covering less than a third of the anticipated demand.
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