Jim Ratcliffe, the billionaire founder of Ineos, has sharply criticized Britain's energy policy, calling it 'all over the place,' as his company announces a major expansion into North America alongside Shell. The chemicals tycoon warned that high energy prices are undermining national security and economic growth in Europe and the UK.
Ineos Takes Stake in Gulf of Mexico Sites
On Tuesday, Ineos revealed it has acquired a 21% stake in three oil and gas fields off the east coast of the United States, part of a broader push into the world's largest economy. The company did not disclose the purchase price but has now committed over $3 billion to its US operations. Ineos aims to diversify away from its upstream activities in Europe and the UK, citing high energy costs and excessive regulation.
Ratcliffe's Criticism of European Policy
In a statement, Ratcliffe said: 'Growth in an economy is highly correlated to competitive energy prices, and it’s a huge issue for national security. If you can’t get energy, then you can’t run your hospitals, run industry or heat your houses.' He added that Europe's energy policy is 'all over the place' and that investors naturally gravitate toward stable environments like the US.
This criticism comes despite the UK government injecting £105 million into Ineos's Grangemouth plant in December to prevent its closure. At the time, Ratcliffe praised the government's commitment to manufacturing. The investment saved hundreds of jobs, according to ministers.
Partnership with Shell
The new deal will see Ineos Energy collaborate with Shell to explore untapped oil and gas reserves in the Gulf of Mexico, approximately 80 miles off the Louisiana coast. The partnership will focus on developing the Fort Sumter discovery, which holds an estimated 125 million barrels of oil equivalent. Additional exploration projects are planned before 2030.
Financial Challenges
Ineos is currently grappling with a significant debt burden, which exceeded $18 billion at the end of last year—13.5 times its annual earnings. Credit ratings agency Moody's has downgraded the group's debt twice since September, citing a 'continued and greater than expected deterioration' in operating performance. Ratcliffe is overseeing a major disposal program to shore up the balance sheet, including the potential sale of Ligue 1 football club Nice and his co-founder's yacht.
A government spokesperson responded: 'The UK has one of the most robust fiscal frameworks in the world, which helps maintain economic stability while unlocking £120 billion of investment in our future infrastructure with disciplined day-to-day spending. Borrowing has fallen by £20 billion, debt is on a downward path, and the UK’s economic resilience is stronger.'
