President-elect Donald Trump expressed strong criticism of the United Kingdom’s Energy Profits Levy on Friday, following the announcement from Texas-based oil company Apache that it would cease operations in the North Sea due to this controversial windfall tax. Apache revealed its decision in November, stating that the economic implications of the levy, along with new regulations mandating emissions control investments for any North Sea operations extending beyond 2029, prompted the move.
The company confirmed it plans to exit the region by December 2029. Trump remarked on the situation, saying, “The U.K. is making a very big mistake. Open up the North Sea. Get rid of windmills!” This statement was shared on his platform, Truth Social, where he argued that both the levy and the emissions requirements would hinder the UK’s economic interests. The president-elect’s comments appear to address the UK’s broader strategy aimed at transitioning energy companies from fossil fuels to renewable sources, including wind energy.
John Christmann, CEO of Apache’s parent company, APA, indicated on November 8 that the decision followed a comprehensive six-month assessment. He noted the significant investments necessary to adhere to the new regulations, coupled with the substantial financial burden imposed by the Energy Profits Levy, rendered further hydrocarbon production economically unviable beyond 2029. In a statement at the time, Apache emphasized that the combination of the considerable financial impact of the levy and the investment needed for regulatory compliance created an unsustainable environment for continued operations in the North Sea.
