Opportunity for prosperous offshore energy sector ‘hangs in balance’ – report

Offshore Energies UK has published its Business Outlook report.

The report looks at the offshore industry (Andrew Milligan/PA) (PA Archive)

The opportunity to create a prosperous offshore industry that helps the UK move towards net zero “hangs in the balance” as investment falls due to challenges such as windfall taxes, according to research.

Offshore Energies UK’s (OEUK) Business Outlook report found that nine in 10 North Sea operators are cutting back on investment, citing a mix of high taxes, political uncertainty and inflation as key factors in their decisions.

The report comes following the windfall taxes imposed on North Sea oil and gas operators, under which their overall tax rate has risen from 40% to 75% in 10 months.