The UK’s energy security is precariously poised, according to Serica Energy. The company’s chairman, David Latin, has issued stern warnings about the nation’s current political strategies. He emphasised that these policies could lead to severe repercussions for the offshore oil industry and overall energy stability.
David Latin, chairman of Serica Energy, has voiced strong criticism, asserting that windfall taxes and political opposition have rendered the UK the most hostile environment he has ever operated in, outside of war zones. Mr. Latin, who has over 30 years of industry experience globally, stated, “Other than when I was responsible for a company with significant assets in a war zone, I have never encountered a political situation so challenging for investment decisions and future planning as it is in the UK at present.”
Adding to these challenges, the Labour Party has pledged to further raise the tax and eliminate investment allowances specific to the industry. A move that Mr. Latin warns would set a dangerous precedent by isolating a single sector from common business tax reliefs.
Mr. Latin emphasised the critical role of hydrocarbons in modern civilisation and the ongoing dependency on them. “Surely it is better to produce these responsibly under world-leading regulatory oversight in this country, with all the attendant benefits in jobs and tax revenues, than to import hydrocarbons which often arrive with a higher environmental and social cost than domestic production.”
“Oil and gas continue to flow only when the main supply of investment stays open. Without it, the flow dries up. Even existing oil and gas fields decline and need continuous investment to maintain production,” he said.
Serica Energy’s strong stance underscores the urgent need for a balanced approach to energy policy, ensuring both economic stability and energy security for the UK.
He suggests that fostering a more predictable and supportive regulatory framework is essential for attracting and retaining investment in the UK’s oil and gas sector.
These calls for reform are not just about protecting the interests of oil and gas companies, but about safeguarding jobs, energy security, and broader economic health.
The industry, along with stakeholders, is watching closely, hoping for policies that will foster growth and stability.
In light of these concerns, Serica Energy’s warnings serve as a crucial reminder of the intricate balance required in energy policy. The UK’s political landscape must evolve to ensure both economic and energy security, avoiding measures that could jeopardise the future of domestic oil and gas production.
