The former boss of Oil & Gas UK has warned that the sector faces a "wholly premature death" at the hands of "incompetent" politicians.

Malcolm Webb was chief executive of the trade body - which has since been rebranded as Offshore Energies UK - between 2004 and 2015.

Writing in the Press & Journal today, he has accused UK politicians of demonstrating "a staggering level of ignorance and incompetence" towards the industry.

He said numerous chancellors have "carelessly treated the industry as a cash cow" which they have "aggressively milked without regard for its role as a vital provider of jobs, wealth and energy security for the UK".

'Toxic'

The government currently plans to increase windfall taxes on oil and gas profits from 75% to 78%, extend the tax until 2030 and abolish tax incentives for investment.

Mr Webb added: "No industry can long survive under such a regime. It is a toxic formula designed to bring an industry to its knees.

"It is an aggressive move to end the production of oil and gas in the UK, presumably in the mistaken belief that this will advance the cause of net zero.

"It will do no such thing. Billions of barrels of UK oil and gas reserves will simply remain in the ground to be replaced by non-UK production."

Operator cans investment

The threat of further tax rises is already having an impact on the sector, and this morning Deltic Energy became the latest firm to confirm it is pausing UK investment.

In a strategic update to investors, Deltic said it would now focus on opportunities elsewhere in the world.

"It is clear that, while this situation persists, the UK is not the ideal place in which to invest in new oil and gas exploration or appraisal opportunities," the firm said.

"Therefore, the board has carefully considered the best way to leverage the company's international experience and expertise to create value for shareholders going forward."

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