Proactive Investors - Oil and gas production in the North Sea fell at the fastest rate in a decade over the past six months due to the government’s windfall tax and fears about a Labour government.
Output fell by 13% to 16.2 million tonnes, the biggest decline since the same period in 2013, according to industry lobby group OEUK, which represents 400 operators in the region.
OEUK said the windfall tax had seriously destabilised the industry while nervousness about Labour’s plans was also having an impact.
Labour leader Keir Starmer has said he will ban all new North Sea development if he comes to power.
David Whitehouse, OEUK’s chief executive, said: "People want to see consistency of policy, but it’s clear there is political uncertainty with a general election next year.
“That is causing uncertainty with investors and that is part of the reason why we are not seeing much investment being unlocked."
He added: “In recent months we have felt the direct impact of underinvestment in homegrown energy on job security for our workers, the competitiveness of our firms internationally and our future energy bills.
“The UK mustn’t just become a good place to do energy business, it must become irresistible.”
Oil group Enquest this week said it made a loss last year due to the impact of the windfall tax.