Sir Jim Ratcliffe, INEOS Founder and Chairman, has sounded a warning regarding the UK’s energy policy as the Forties Pipeline System (FPS), a vital conduit for North Sea oil, has experienced a 40% decline in oil flows over the past six years.
This pipeline, responsible for processing 40% of the North Sea’s oil, has been forced to close a third of its processing capacity, raising concerns about the impact on jobs.
INEOS, in its six years of ownership, has witnessed this substantial drop in oil flows, resulting in the closure of one of the three processing plants due to reduced demand.
According to INEOS, this sharp decline in oil flows can be attributed to a combination of punitive windfall taxes and discouraging signals from politicians concerning the future of the North Sea.
Sir Jim Ratcliffe deemed the UK’s absence of a coherent energy policy “completely irresponsible.”
Sir Jim Ratcliffe strongly criticised the UK’s stance, underscoring that the rest of the world recognises the ongoing demand for oil and gas over the next three decades and is encouraging production through reasonable taxation.
Energy Live News has contacted the Department for Energy Security and Net Zero for comment.