Trump’s Efforts to Promote Fossil Fuels Clash with UK’s Move Toward Renewable Energy
U.S. President-elect Donald Trump has strongly condemned the United Kingdom’s approach to energy, labeling it a “significant error” as he pushes for more drilling for oil and gas in the North Sea and calls for the removal of offshore wind farms. This position is in line with Trump’s broader support for fossil fuels, which involves plans to undo several Biden administration policies, including the suspension of new liquefied natural gas (LNG) export licenses and limits on offshore drilling. Trump’s recent remarks were triggered by the UK’s move to increase the Energy Profits Levy (EPL) for North Sea companies from 35% to 38% starting November 1, 2024, and to extend the end date to March 31, 2030—one year later than earlier scheduled—adding further financial strain to the industry.
Trump’s criticism comes at a time when energy companies based in the UK are increasingly worried about the sustainability of their North Sea operations. In November 2024, Texas-based Apache Corporation announced it would halt oil extraction in the UK North Sea by 2030 due to the unviable nature of the windfall tax, citing the EPL as a decisive factor. The company stated that it was no longer economically practical to continue in the region. Similarly, Brian Gilvary, chairman of Ineos Energy, remarked that the current tax system has prevented companies from growing their activities in the UK North Sea.
Trump’s statements reflect his ongoing resistance to offshore wind energy, which he has criticized as both costly and harmful to the environment. Offshore wind projects in the U.S. now face considerable uncertainty should Trump return to office, as he has previously questioned whether such projects are financially sustainable. This contrasts with the UK’s broader commitment to expanding clean energy and reducing reliance on fossil fuels. The Labour Party, now leading the government, has stressed the importance of moving toward renewable energy while also ensuring a stable energy supply.
The UK’s adjustments to its energy policy are part of a wider international trend as governments respond to economic and geopolitical pressures by revising their energy strategies. The increase in the EPL follows similar actions in the United States and elsewhere to raise taxes on energy producers amid growing concerns about climate change and the need for energy security. While these measures are designed to lower carbon emissions, they have also created uncertainty among energy firms, leading many to reconsider long-term commitments to fossil fuel investments. The heavier tax load has also raised questions about the UK’s ability to remain energy independent, as less investment in the North Sea may mean a greater reliance on imported energy.
Experts are examining the broader economic fallout from Trump’s energy policy preferences and the possible effects on the world markets. Some analysts argue that Trump’s focus on cheaper oil and lower borrowing costs is seen as an indicator of economic confidence, yet these same factors might also signal a possible slowdown in global demand. For instance, oil prices slid about 15% during the week after Trump announced new tariffs, as markets braced for economic disruption. Although falling oil prices can offer short-term relief to consumers, they may also point to weaker economic activity, which could further decrease energy demand.
Debates over energy policy in both the U.S. and UK are unfolding amid a larger global contest over access to essential minerals and resources—especially rare earth elements, which are crucial for modern technology and clean energy systems. Recently, the U.S. and China reached a deal to speed up rare earth exports, following a period of trade friction that saw export restrictions and retaliatory tariffs. The agreement, made public by the White House in June 2025, is designed to stabilize supply chains and guarantee ongoing access to these minerals for key industries such as defense and high technology.
Despite ongoing diplomatic efforts, experts warn that the U.S. and its partners face substantial obstacles in reducing their reliance on China for rare earth processing and refining. China currently handles about 85% of the world’s processing capacity and has advanced techniques for producing high-purity rare earths. While countries like Australia, Canada, and members of the European Union are investing in alternative supply chains, their production still falls far short of China’s. The U.S. has begun efforts to boost its own rare earth output, but these projects are in early development stages and are unlikely to significantly reduce dependence on Chinese imports soon.
The intersection of energy strategy, international trade, and resource security is reshaping the global economic order, with rare earths and fossil fuels taking center stage in international policy discussions. The choices made by leaders such as Trump and the UK’s Labour Party will play a crucial role in determining the direction of energy markets, supply networks, and global alliances.
