Reported 5 months ago
The looming early election poses a threat to the North Sea oil industry as Labour's plans to increase taxes and ban new drilling could lead to the sector's decline. Experts warn that if Labour fulfills its promises, operators may abandon British waters, resulting in fewer jobs, lower tax revenues, and increased global emissions. The uncertainty surrounding Labour's tax plans is already deterring investment in the UK oil and gas sector, with companies like Serica Energy and EnQuest considering overseas investments instead. Chevron has also announced plans to exit the North Sea. Analysts estimate that Labour's proposals could strip billions from the UK's offshore industry's value, risking jobs and energy security. In response, industry representatives express concerns over the potential damage to communities and energy security if Labour's policies are implemented.
Source: YAHOO