Latest drastic proposals from Labour for Britain's offshore oil and gas sector could lead to a massive decline in the North Sea industry.
The possibility of such a devastating situation unfolding in the next few years has become apparent in recent days in speeches from leading opposition politicians.
Trade body Offshore Energies UK pulled no punches at the weekend when it responded to radical plans for the sector if Labour wins the next General Election.
OEUK warned that another tax hike on oil and gas producers would spell disaster for energy workers, consumers - and the country's energy security.
Jenny Stanning, external relations director for the trade group, said: "We have an obligation to warn all policymakers that, if you undermine those companies now, and send the sector's 200,000 skilled workers into other industries, you will damage both the nation's current energy security and our hopes of a rapid transition to low-carbon energies."
Earlier last week, Sir Keir Starmer had caused widespread alarm in the oil and gas sector when he vowed to halt investment in new offshore fields if Labour takes power.
Ruled out
The Labour leader ruled out new investment in North Sea fossil fuels as he outlined the party's mission to go green.
But things got even worse at the weekend when it emerged that Shadow Chancellor Rachel Reeves revealed that a Labour Government would make the controversial windfall levy on oil and gas producers even more draconian.
She pledged to end the fossil-fuel investment allowance, and tax oil and gas profits at the same rate as Norway - an increase of 3% to a sky-high 78%.
Ms Reeves said: "Over the last year, North Sea oil and gas profits have tripled. That cannot be right."
She claimed that backdating the windfall levy from the start of 2022 could raise an extra £13billion-plus.
Ms Reeves added: "A Labour Government would pass those savings onto families immediately, to keep energy bills down this year."
OEUK response
But OEUK has hit back, making numerous points.
Labour was warned that the comparison with Norway's tax regime was inaccurate and misleading.
It explained: "This is because, although Norway imposes headline tax rates like those proposed by Ms Reeves on profits from oil and gas, it also give its offshore industry investment allowances and other tax concessions far-more generous than would be the case in the UK.
"It means her proposals would actually see the UK industry facing significantly-higher taxes than their Norwegian counterparts.
"This would, in turn, make many UK projects economically unviable, and lead to a rapid decline in output.
" OEUK has estimated that, if investment in new fields were to halt now, then oil and gas production would decline 50% by 2030. There is no sign of any similarly-steep decline in demand for oil and gas - so imports would surge, making the UK increasingly-reliant on other countries for its energy.”
Pledge
Ms Stanning added: "We all know that the UK must transition to low-carbon energies as fast as possible. Our industry has pledged to work with the UK's governments to reach net-zero by 2050. But, in the three decades till then, we will need gas and oil.
"About 24million homes (85% of the total) rely on gas boilers for heat and we get 42% of our electricity from gas. We also have 32million vehicles running on petrol and diesel. Gas-fired power stations make 42% of our electricity too. So, our homes, businesses, schools, and cars all need gas and oil.
"The companies providing those fuels are the same companies that are investing in the transition. They are already building the offshore wind farms, the CO2 capture-and-storage systems and the hydrogen-production facilities that will power our country in future.
“Labour has acknowledged that it can only deliver this in partnership with business and our members stand ready to work together to achieve this.
"We have an obligation to warn all policymakers that, if you undermine those companies now, and send the sector's 200,000 skilled workers into other industries, you will damage both the nation's current energy security and our hopes of a rapid transition to low-carbon energies.
"So, policymakers need to remember that words have consequences.
'Damage must stop'
“Only this week, we heard that the UK's biggest North Sea operator is winding down UK investment. This damage must stop and that means we need to find a compromise - a pathway we can all agree on, and which is practical for the country. We will be actively seeking those discussions."
OEUK also said it had been in contact with Labour seeking clarification of its plans.
The party issued a statement to the trade group: "The next Labour Government will make the UK a clean energy superpower
"As part of the plan, Labour will manage existing oil and gas wells sustainably over the coming decades, recognising the jobs and local economic value they bring.
"The transition to net-zero is an opportunity for industry, and a process. We won't turn off the taps, but part of our plan is to stop licenses for new oil and gas fields."