ENVIRONMENTAL campaigners dismissed oil industry demands for tax cuts to safeguard jobs and the supply chain as “extortion” today.

Friends of the Earth Scotland’s comments come after trade association Offshore Energies UK (OEUK) published an open letter to industry minister Chris McDonald, urging the government to work with it to phase out the temporary Energy Profits Levy (EPL) or windfall tax, and implement a permanent tax regime from 2026.

OEUK argued that if the government does as it proposes, the present 1,000 jobs a month being lost in the sector could be turned around to generate 23,000 additional jobs by 2030, add £137bn to the economy and “safeguard the UK’s energy transition.”

But FoE’s Rosie Hampton was unconvinced, saying: “This menacing letter is little more than extortion with the oil and gas industry threatening to sack even more workers if they aren’t allowed to make larger profits.

“Energy companies have made off with over a half a trillion pounds in profits since the start of the energy price crisis, yet they are consistently whingeing about having to pay a tiny fraction of this back to fund the vital public services.

“Jobs in oil and gas have halved since 2014 despite hundreds of licences issued during that time.

“Supporting energy workers means that politicians should create credible, funded transition pathways into well-paid, secure renewables jobs — not chasing the dregs of a mature North Sea basin or pipe dreams like carbon capture.”

A government spokesperson commented: “We are taking a responsible approach that recognises the long-term role of the sector while exploring what follows the end of the EPL, so firms continue to invest and pay their fair share of tax.”