Drop in UK oil & gas players’ profits prompts calls for tax changes to amplify investments

UK oil and gas companies’ declining profits have sparked calls for tax changes to boost investments. Offshore Energies UK (OEUK) is urging the government to address the energy profits levy (EPL) – also known as the windfall tax on oil and gas profits – by next year to secure jobs, enhance energy security, and develop energy infrastructure for the future. OEUK suggests replacing the windfall tax with a competitive long-term mechanism to encourage investment in the country’s energy future, responding to price shocks. The current windfall tax stands at 78%, despite companies in the UK oil and gas sector experiencing negative profit levels. OEUK argues that removing this tax and implementing a competitive system by 2026 will drive vital investment across the UK’s energy sector. OEUK’s Chief Executive emphasizes the importance of responsible oil and gas production alongside renewable energy to meet the nation’s energy needs. The organization’s plan aims to boost investments in UK energy, create jobs, strengthen energy security, and support economic growth by prioritizing home-produced energy.