Trump pushes North Sea oil as wind energy falters
Donald Trump, the president-elect of the United States, is advocating for increased oil extraction in the North Sea at the expense of wind farms. The new leader's comments came in response to an American oil company's decision to withdraw from the area in the coming years.
"The U.K. is making a very big mistake. Open up the North Sea. Get rid of Windmills!," Donald Trump wrote on social media.
His comment referred to information provided by the Aberdeen and Grampian Chamber of Commerce, which announced Apache Corporation's withdrawal from the North Sea.
APA Corporation, which owns Apache, has announced that it will cease operations in this area by the end of 2029. The American company expects its production in this region to decrease by 20 percent this year compared to the previous year.
Wind turbine tax and company decisions
Apache justified its decision by citing the unprofitability of continued operations due to the so-called wind turbine tax.
According to an announcement by the UK government, starting October 2024, this tax will be extended by a year, and its rate will increase from 35 to 38 percent. The revenue generated is intended to fund projects related to renewable energy.
Experts note that in recent years, many oil companies have been leaving the North Sea, with production declining from 4.4 million barrels per day at the beginning of the 21st century to about 1.3 million barrels per day today. Harbour Energy, a leading British oil producer, also plans to sell its shares in this region.
Problems with wind farms
Reuters points out that despite the decline in oil and gas extraction, there has been no corresponding increase in the number of wind farms or energy production from this source.
Technical problems and supply chain difficulties have forced many companies, including the largest offshore wind farm developer, Orsted, to lower their investment and performance targets.
The American company Exxon has already ceased oil extraction in the North Sea, and Harbour Energy plans to go public in the United States. These decisions indicate that the oil sector in the North Sea faces significant challenges that may impact the region's energy future.
