North Sea oil production witnessed its sharpest decline in ten years due to growing concerns about a potential Labour administration and the windfall tax imposed by Rishi Sunak, which has discouraged investment.
A study by Offshore Energies UK (OEUK) revealed that there was a 13% drop in crude oil production in the first half of this year compared to the first half of 2022.
This significant drop meant that oil production sank to an all-time low, producing 16.2m tonnes, which is approximately one-fourth of the UK’s highest production in 1999.
OEUK, representing 400 entities in the oil, gas, and wind sectors, mentioned that this decline is the largest since the same timeframe in 2013 when there was a 13.7% decrease.
Ross Dornan, one of the contributors to OEUK’s yearly economic report, stated that the windfall tax introduced by the government has shaken the industry’s foundations. OEUK has also cautioned about the potential risks of Labour’s energy strategies.
Sir Keir Starmer, the leader of the Labour Party, has promised to prohibit any new oil and gas permits under his leadership in his pursuit to transform the UK into a leading nation in clean energy.
