ISTANBUL

US President Donald Trump on Tuesday called for Britain to slash taxes on North Sea oil extraction, arguing that high levies discourage investment in a rich resource for the UK.

"North Sea Oil is a TREASURE CHEST for the United Kingdom," Trump wrote on social media during his five-day visit to Scotland. "The taxes are so high, however, that it makes no sense."

Trump criticized the current tax structure. "They have essentially told drillers and oil companies that, 'we don't want you.'"

"Incentivize the drillers, FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people," he wrote, echoing his US talking point: “Drill baby drill.”

Oil and gas companies operating in UK waters face a tax rate of approximately 78%. This includes corporation tax at 30% plus an Energy Profits Levy of 38%, introduced in 2022 to capture windfall profits from elevated energy prices.

The UK government launched a consultation in March on plans to replace the windfall tax when it expires in 2030.

Industry reports suggest the North Sea could produce about half of Britain's oil and gas needs through 2050 if new projects are developed. A study by Westwood Global Energy Group found up to 7.5 billion barrels could still be extracted from UK waters, potentially worth £165 billion ($219 billion) to the economy.

Current forecasts suggest the North Sea will produce less than 4 billion barrels, meeting less than one-third of projected demand in the same period.