Jim Ratcliffe warns UK's energy policy is ‘all over the place’ as Ineos pumps investment in Donald Trump’s US

Billionare businessman Sir Jim Ratcliffe has expanded his company’s stake in US oil after describing domestic energy policy as “all over the place”.

Ineos Energy, which runs the energy-related operations of Ineos, the petrochemicals group founded by Sir Jim, has launched a joint venture with Shell Offshore in US waters.

Ineos Energy announced last year that it would cut offshore funding in the UK in favour of the US. Company chairman Brian Gilvary said America had a “proper energy security and a proper fiscal regime”.

The new joint venture is off the coast of Louisiana and will see the companies “strengthening their collaboration and jointly supporting long-term energy security”.

Ineos and Shell will explore for untapped oil and gas reserves in the Gulf of Mexico, now known as the Gulf of America.

Sir Jim’s company has invested more than $3billion in US operations in the last three years.

Sources said the deal was “the latest step in Ineos Energy's deliberate shift of investment to the United States” and “reflects a clear view from Ineos leadership about where the conditions for long-term energy investment are most stable”.

Sir Jim, who also owns Manchester United, said he was looking to the US because investors should “always go to the stable rather than the unstable”.

“I would have a lot more confidence in investments in America in the energy sector than I would in Europe”, he said in an interview shortly before the move was confirmed.

“Energy - it’s not a sexy subject, but you see, it’s a hugely important subject for an economy or a country because it has these two huge implications.

“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.

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“Europe is all over the place. From an investment point of view, you always go to the stable rather than the unstable.”

Sir Jim has previously criticised the Government’s stance on North Sea oil, calling for work at Rosebank and Jackdaw – two fields halted by legal climate challenges – to resume.

“Approving them would send a signal that Britain is serious about energy security,” he has said.

“The disruption in the Strait of Hormuz should be a wake-up call. Britain is choosing to import energy rather than produce it.”

Speaking ahead of the US investment news, Mr Gilvary also criticised the UK’s stance on the North Sea.

He said: “What’s going on right now is almost ideological political vandalism of a natural resource. “We are the only nation in the world with a resource that could be developed for energy, and we’re choosing to close it down.

“That will be short-lived, that will not survive. Whether it survives this government - I don’t think it will survive beyond this parliament, because of the importance of that national resource.”

Ineos Energy was established in 2020. Its activities are focused on offshore oil and gas assets in Britain, Denmark and the United States.

It entered the American oil and gas production market for the first time in 2023. Mr Gilvary said the latest US venture built on a portfolio of operations in US onshore and offshore, as well as European offshore.

He said: “Having now built a strong foundation across three strong locations, we’ll continue to look for bolt-ons.

“There will be opportunities for us in the Gulf of Mexico around the existing infrastructure we’ve got.”

David Bucknall, CEO of Ineos Energy, said: "Partnering with Shell on these opportunities is a natural step.

“We are focusing on areas close to existing infrastructure where we can move quickly, control costs and unlock new production.

“This is disciplined growth targeting exploration, shared risk, and returns. These opportunities strengthen our portfolio and support long-term energy security."

A Government spokesperson said: "The UK has one of the most robust fiscal frameworks in the world which helps maintain economic stability while unlocking £120billion of investment in our future infrastructure with disciplined day-to-day spending.

“As a result, borrowing has fallen by £20billion, debt is on a downward path, and the UK’s economic resilience is stronger.”

The Department for Energy Security and Net Zero has said that increased North Sea exploration wouldn’t lower bills because the price of gas is set by international markets.

It says moving to renewables is the only way to safeguard the country against volatile price shocks, such as the one caused by the war in Iran.

The Ineos news follows reports last week that BP was weighing a sale of some or all of its UK North Sea operations as part of an effort to cut debt and refocus on higher-return oil and gas projects.

Bloomberg News said that the plans were not final and may not materialise.