They warn that burdening the industry with extra taxes is bound to be a deterrent to further investment – pointing to a similar cutback by Harbour Energy, the UK’s biggest oil and gas producer, which has halted all North Sea investment.
Chris Wheaton, an analyst at Stifel, published a new analysis of the North Sea’s prospects on Wednesday entitled: “Will the last energy company to leave the North Sea please turn off the lights.”
It warned that windfall taxes risk accelerating the decline of North Sea oil and gas production so fast that output will fall by up to 70pc by 2030, leaving the nation increasingly reliant on imports.
Criticising the windfall tax, and Labour’s plans to increase it, he said: “Loss of investment means loss of jobs and skills for the energy transition.”
Mr Wheaton suggested 100,000 of the 200,000 jobs linked to the industry were at risk of disappearing by 2029, with the UK importing 80pc of its gas before the decade is out.
A Government spokesman said: “No one is backing the oil and gas industry more than the Government. Our annual licensing rounds are supporting around 200,000 jobs, giving them certainty to invest and unlocking billions in tax for our own transition to clean energy.
“The temporary windfall tax on oil and gas firms actively encourages investment to create jobs and grow the economy – the more investment they make the less tax they will pay.”