Edinburgh: US President Donald Trump has urged the United Kingdom to reduce taxes on North Sea oil extraction, stating that the high levies currently discourage investment in what he describes as a significant resource for the nation. During his five-day visit to Scotland, Trump took to social media to express his views, labeling North Sea oil as a "TREASURE CHEST" for the UK. He criticized the existing tax structure, suggesting it sends a negative message to drillers and oil companies.

According to Anadolu Agency, Trump emphasized the potential economic benefits of incentivizing oil drillers, claiming it could lead to substantial financial gains for the UK and lower energy costs for its citizens. Trump's comments come as oil and gas companies operating in UK waters face a tax rate of approximately 78%, which includes a corporation tax of 30% and an Energy Profits Levy of 38%, introduced in 2022 to capitalize on windfall profits from elevated energy prices.

The UK government has initiated a consultation process to consider replacing the windfall tax when it expires in 2030. Industry reports indicate that with the development of new projects, the North Sea could potentially supply about half of Britain's oil and gas needs through 2050. A study by Westwood Global Energy Group reveals that up to 7.5 billion barrels could still be extracted from UK waters, potentially contributing £165 billion ($219 billion) to the economy.

However, current forecasts suggest that without further investment, the North Sea will produce less than 4 billion barrels, covering less than one-third of the projected demand over the same period.