The Offshore Energies UK (OEUK) has warned that thousands of jobs and significant tax revenue in the U.K. are at risk unless the government reforms the Energy Profits Levy (EPL). Ahead of the Autumn Statement, OEUK highlighted that adjusting the current 78% levy in 2026, rather than allowing it to expire in 2030, could boost tax receipts from £32.9 billion to £63.9 billion over the next decade. This reform could also unlock £50 billion in U.K. projects, creating tens of thousands of jobs and enhancing energy security.
OEUK’s data indicates that 111 viable projects with 3.25 billion barrels of reserves could help meet half of the U.K.’s oil and gas needs by 2050. The group estimates these initiatives could generate £75 billion in economic value by 2035. However, delaying reforms could lead to a 40% decline in North Sea output by the decade’s end, resulting in approximately 1,000 job losses each month and increased reliance on imports.
The U.K. offshore energy sector currently supports around 200,000 jobs and contributes £25 billion annually to the economy. OEUK cautioned that uncertainty regarding the EPL could hinder access to an estimated £200 billion in private capital for future energy projects.
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