A windfall tax on the soaring profits of North Sea oil and gas producers would deliver minimal short-term benefits to UK citizens and instead risk a longer-term negative impact on investment in the nation's energy security and shift to net zero, the sector's main trade body has warned. High commodity prices driven by the post-pandemic recovery and Russia's invasion of Ukraine have helped operators reap big profits this year, prompting calls by opposition parties for a one-off levy to help householders struggling with rising energy and other household costs. North Sea oil and gas industry leaders are gathering in Aberdeen this week for the annual conference of trade association Offshore Energies UK (OEUK). Speaking during the opening session, OEUK chief executive Deirdre Michie acknowledged the calls were "well intentioned" but she argued a "punitive" tax would ultimately be counter-productive. Michie said the introduction of a tax would result in: "Quick headlines, short-term political gain, a minimal uptick in tax - the benefits of which would actually fade far faster than the damage such a tax could do with declining investment and production levels, that will almost certainly follow. "Such unexpected policy swings, risk achieving the opposite of what politicians say they actually want and could result in undermining energy security and ultimately the energy transition itself."
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