Jim Johnson, chief executive of Hunting, an engineering company serving the oil and gas sector, argues that the United Kingdom's focus on green energy policies has rendered the country uninvestable and contributed to rising energy bills.
Johnson points to the delayed development of the Rosebank and Jackdaw oil and gas fields in the North Sea as examples of regulatory uncertainty hindering energy production. He states that after discovering these fields years ago, their development remains stalled, not due to technical challenges, but because of indecision regarding their exploitation.
This situation, he contends, exacerbates the impact of global events, such as the conflict in Iran, on the UK's energy market. While international turmoil affects wholesale prices, Johnson asserts that the UK's vulnerability stems from domestic policies that deny the reality of how the country powers itself. He highlights punitive taxes, with the current headline rate on North Sea oil and gas profits at 78 percent, a refusal to issue new exploration licenses, and regulatory paralysis for projects like Rosebank and Jackdaw, all contributing to an increased reliance on imported energy.
Johnson claims these policies have not only failed to secure the nation's energy supply, leading to price surges when international conflicts arise, but have also made the UK uninvestable in the eyes of many international businesses. He cites his own company's decision to significantly reduce its UK presence, closing four of its six operating sites and shedding dozens of jobs, as a direct consequence. "Capital is not patriotic – it goes where it is welcomed and respected," Johnson stated.
He also mentioned Apache, a major customer, suspending drilling in the North Sea in 2023 due to the tax regime and subsequently ending its North Sea production altogether. Furthermore, BP has put its entire UK North Sea oil and gas business up for sale, with plans to develop a gas field in Venezuela, marking a potential end to over 60 years of production in its home country.
Johnson criticizes the UK government's adherence to what he describes as the "cult of Net Zero," suggesting its pursuit has become almost religious. He clarified that energy companies are not indifferent to climate change and have invested in cleaner production methods. However, he argues that environmental ambitions must be balanced with economic realities and the need to improve living standards. He asserts that policies leading to factory closures, job losses, a weakened tax base, and increased energy costs cannot be deemed successful.
Despite efforts towards green energy, Johnson notes that the UK still relies heavily on fossil fuels, importing an increasing proportion as domestic North Sea production declines. He argues that this reliance on imports, sometimes from countries with lower environmental standards, adds emissions and costs. He also countered the notion that the UK has exhausted its oil and gas reserves, stating substantial potential remains offshore, particularly with advancements in extraction technology.
Johnson emphasizes that the choice is not between fossil fuels and cleaner energy indefinitely, but whether the transition is affordable and realistic, or if it will dismantle the economy in pursuit of arbitrary targets. He stated that a modern industrial nation requires abundant, reliable, and competitively priced energy, as it forms the foundation for all other sectors. He concluded that while his company, founded in 1874, has adapted to global changes for over 150 years, it cannot overcome government policies that make investment irrational.