By GB News (World News) | Created at 2026-08-11 20:10:57 | Updated at 2026-08-11 20:27:20
30 minutes ago
There is still “lots of oil and gas” in the North Sea but poor Government management has scared off investors, industrialist Sir Jim Ratcliffe said.
The billionaire boss of chemical giant INEOS and co-owner of Manchester United said the North Sea was a “very good basin” that had been “extremely poorly managed by the Government”.
The energy profits levy, or windfall tax, was one stumbling block, he said. Initially introduced by the Tories and maintained under Labour, it sees firms face a headline rate of 78 per cent of profits.
It is due to be replaced in 2030, although industry leaders have called for it to end earlier.
Sir Jim said that, even if it lifted tomorrow, investors would be wary of future Government plans.
He made the comments during a discussion with Tom Crotty, director of Corporate Affairs at INEOS.
The interview was recorded on the day Andy Burnham became Prime Minister.
Sir Jim said that a merry-go-round of leaders had added to a sense of uncertainty over UK energy policy.
There is still 'lots of oil and gas' in the North Sea but poor Government management has scared off investors, Sir Jim Ratcliffe said
He was asked, if the UK were to remove the windfall tax immediately, would INEOS “be bullish in investing in the North Sea, or has our trust in UK policy makers been broken for good?”
He replied: “Trust is not high, I would have to say, given our experiences over the last ten or 15 years in the UK.”
He explained that each new leader had come in “with a new idea of how best to run our energy policy in the UK”.
He went on: “I think confidence in the government maintaining a new approach in the North Sea would be low, from everybody.
“We would need some form of assurance that, if they removed the windfall tax, they are not going to put it back again within a year or two years.
“Because if you invest in the North Sea on the basis that there is no windfall tax, it’s a long-term investment. It’s not a one year investment.
“There’s no point in us going down that road then finding out that we get our ninth PM and he decides that the windfall tax is a really good idea and he’s going to bang it back in again.
“Unfortunately, the UK has eroded confidence for investment in the North Sea. I mean, it’s a very good basin. There’s still lots of oil and gas left in it.
“But it’s been extremely poorly managed by the Government.”
Sir Jim also had a warning for European leaders, saying carbon taxes and high energy costs had helped to leave the chemical industry vulnerable
Sir Jim also had a warning for European leaders, saying carbon taxes and high energy costs had helped to leave the chemical industry vulnerable.
He has previously warned of the dangers of Chinese overproduction, with cheap imports flooding the market, and he said more help was needed for domestic plants.
He said: “We have to work with the environment to the extent that we can, which is to persuade the ruling members of Europe to improve the tariff situation, improve the energy situation and improve the carbon tax situation so that we are operating in a more competitive landscape.
“The trading conditions have been super difficult in Europe.
“And we are seeing, at the moment, the closure of the chemical industry in Europe. We need to get Europe to protect its marketplace.
“It’s fundamentally important for national security. You can’t feed people, you can’t run hospitals - you can’t make weapons, for that matter - if you haven’t got the products that we fundamentally make.”
Mr Burnham has pledged to reindustrialise Britain as he strives for “growth in every postcode” and has indicated that his Government will take a “pragmatic approach” to North Sea oil.
New energy secretary Miatta Fahnbulleh – who was not in post at the time of Sir Jim’s interview – has said that oil and gas will play a role in the UK energy mix for years to come.
Climate campaigners have said that the North Sea is a mature basin with dwindling resources. Because of the urgency of climate change, the oil should say in the ground, they say.
Ami McCarthy, head of politics at Greenpeace UK, said: “Trying to squeeze the last few drops of expensive oil and gas out of the North Sea while the world is reeling from climate impacts is beyond ridiculous.”
A Government spokesman said: “The North Sea remains a vital national asset, supporting jobs, growth and the UK's energy security.
“We are clear that oil and gas will continue to play an important role in our energy system for decades to come, alongside renewables, nuclear and other low-carbon technologies.
“Our focus is on providing stability and supporting North Sea workers and communities as they continue to make a vital contribution to the UK’s economy.”
