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Foreign investment into the UK’s energy sector has hit a 12 year low as investors turn their backs on North Sea oil and gas projects.
The number of foreign-funded projects halved to 27 last year, reported the Telegraph.
Only three of these were oil and gas projects, which dropped from 16 the previous year.
A survey by EY on foreign investors found that the UK’s high energy costs were the biggest reason for the lack of investment. There is also concern for the country’s political instability and higher labour costs.
A quarter of the respondents to EY’s survey have said that the government’s focus should be on reducing energy prices.
The industry is also waiting for a final decision on the drilling at the Rosebank and Jackdaw fields, which has pushed back more interest.
Despite the decline, EY say that the UK is still Europe’s second largest destination for foreign investment in energy projects, behind France.
The country’s most popular sectors for overseas investors are technology and business and professional services which have a combined 308 projects.
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