Offshore Energies UK (OEUK) warns that the UK Government’s proposed increase in the Energy Profits Levy could slash economic value by £13 billion and reduce oil and gas investment from £14.1 billion to £2.3 billion. This move risks 35,000 jobs and a £12 billion drop in tax revenue.
Commenting on the OEUK report, Scottish Conservative shadow secretary for net zero, energy and transport, Douglas Lumsden, said: “This report sends a clear message that Labour’s abandonment of the North Sea oil and gas industry will decimate both our local economy and our energy security.
“Labour’s shortsighted and unfounded sanctions of increasing the windfall tax, ending the investment allowance and opposing all new oil and gas licences means tens of thousands of skilled jobs are now hanging in the balance.
“OEUK is absolutely right to hit out at Labour’s economically and environmentally illiterate proposals, which will result in companies walking away from Scotland and taking their investments elsewhere.
“Keir Starmer’s desire to kill off the industry with his supertax will force us to import expensive fossil fuels from overseas with a far higher carbon footprint.
“Just like the SNP, Greens and Liberal Democrats, Labour are oblivious to the fact that renewables alone can’t yet satisfy our energy needs.
“Only the Scottish Conservatives are standing up for the oil and gas sector and recognising its importance to our energy security, jobs and Scotland’s economy.”
