BP's decision to sell its UK offshore oil and gas fields after 60 years highlights a worrying trend of British firms leaving due to high taxes and poor decisions, according to an opinion piece by Tim Newark. The move raises concerns for the future of UK PLC and British industry.
BP's exit and its implications
BP put its North Sea assets up for sale last week, despite the Clair Field still holding seven billion barrels of oil. The company cited that the North Sea is no longer open for business, hampered by frequent tax raids and net zero policies. BP is now shifting focus to the US, reportedly considering moving its listing from London to New York and reducing its UK headquarters.
BP has a long history, starting with oil discovery in Persia in 1908 and pioneering North Sea oil in the 1960s and 1970s, helping Britain become a net exporter in the 1980s. Its current CEO, Meg O'Neill, said the company must focus on highest-value opportunities and that the North Sea fields would be better under another company.
Other firms following suit
Shell has already partially exited the North Sea and announced this week it is selling its UK solar business to a French rival, withdrawing from offshore windfarms to focus on gas. Ineos, another major British firm, has invested in US fracking and closed its last UK ethanol plant at Grangemouth, leading to job losses and imports of the chemical.
Sir Jim Ratcliffe, Ineos founder, said: "Deindustrialising Britain achieves nothing for the environment. It merely shifts production and emissions elsewhere."
Government policies under scrutiny
The Tories introduced a 75% windfall tax on North Sea oil in 2022, raised to 78% by Labour in 2024. Prime Minister Andy Burnham has told Donald Trump he will be more "pragmatic" about North Sea decisions, but it may be too little, too late.
Burnham blames Margaret Thatcher for deindustrialisation, but the article argues that misguided left-leaning policies, including green zealotry and high taxes, are the real cause. Energy prices in the UK have doubled and are five times higher than the US, costing thousands of jobs and billions in investment.
Call for action
Burnham must follow up on his words by reopening the North Sea, cutting energy prices, and lowering corporate taxes. He needs to act quickly to stem the flow of firms leaving and avoid caving to hard-left backbenchers, as his predecessor Sir Keir Starmer did.
