Trump warns Britain of the consequences of imposing a windfall tax on North Sea oil producers.

• On Friday, Donald Trump, the U.S. President-elect, urged Britain to relax its North Sea energy tax policy, claiming it was a grave error made by the Labour government.
• APA Corporation's unit Apache will cease all operations in the North Sea by the end of 2029, prompting a response from him regarding the report on U.S. oil and gas producers.
• In October 2019, the ruling Labour Party in Britain announced plans to increase the windfall tax on North Sea oil and gas producers from 35% to 38%, and also extend the policy's end date.

On Friday, Donald Trump, the U.S. President-elect, urged Britain to relax its North Sea energy tax policy, claiming it was a grave error made by the Labour government.

APA Corporation's unit Apache will cease operations in the North Sea by the end of 2029, prompting a response from him regarding the report on U.S. oil and gas producers.

Last year, the Texas-based company stated in an SEC filing that it was no longer economical to continue production in the North Sea due to the impact of Britain's windfall tax, officially known as the Energy Profits Levy (EPL).

Trump stated on Truth Social that the U.K. is committing a major error by not opening up the North Sea and removing windmills.

In October 2019, the ruling Labour Party in Britain announced plans to increase the windfall tax on North Sea oil and gas producers to 38% from 35%, and prolong the policy's expiration date to March 2030.

The government will use the funds from the windfall tax to finance Britain's shift towards renewable energy sources, which it claims will enhance the country's energy security and sovereignty.

A spokesperson at Britain's Department for Energy Security and Net Zero has been contacted by CNBC to respond to Trump's social media post.

When contacted by CNBC, BP, a major energy company, was not immediately available to respond. Harbour Energy and Shell, two top British North Sea producers, also declined to comment.

The North Sea is considered one of Britain's top sources of reliable offshore wind energy, and many European countries, including the U.K., have committed to making it Europe's largest "green power plant."

Despite facing challenges such as rising costs, supply chain disruptions, and higher interest rates, the offshore wind sector has experienced significant growth in recent years.

Offshore Energies UK's spokesperson stated that Britain requires a diverse energy portfolio from the North Sea, encompassing oil, gas, and offshore wind.

The U.K.'s energy production is at record lows, with the country relying on imports of oil, gas, and electricity for nearly 40% of its domestic energy demand, according to an Offshore Energies UK spokesperson.

To maintain jobs, firms, and their supply chains in the UK, it is crucial to attract investment across the energy mix. The most effective way to safeguard consumers and ensure affordable, secure energy is to produce as much of it as possible within the UK.