Europe and the UK\u2019s approach to energy policy is \u201call over the place\u201d and eroding the region\u2019s security and growth prospects, Jim Ratcliffe has said in an announcement confirming Ineos\u2019s plans to expand its oil and gas operations in the Gulf of Mexico.<\/p>\n
In a statement announcing Ineos\u2019s fresh investment in the US alongside Shell, the billionaire chemicals tycoon<\/a> blasted Britain and the EU for neglecting their energy and industrial sectors, saying both were crucial for a vibrant economy.<\/p>\n \u201cGrowth in an economy is highly correlated to competitive energy prices, and it\u2019s a huge issue for national security,\u201d Ratcliffe said. \u201cIf you can\u2019t get energy, then you can\u2019t run your hospitals, run industry or heat your houses.\u201d<\/p>\n Ineos announced on Tuesday it had taken a 21 per cent stake in three oil and gas sites off the east coast of America as part of a wider push into the world\u2019s largest economy. Ineos did not disclose how much it bought the stake for.<\/p>\n The chemicals juggernaut, which also boasts a large oil and gas division, has now committed over $3bn to its US operations as it seeks to diversify away from upstream operations in Europe and the UK.<\/p>\n Jim Ratcliffe, who also owns Manchester United, has repeatedly hit out at British and EU policymakers\u2019 decision-making for throttling Ineos\u2019s growth, blaming the continent\u2019s sky high energy costs and excess regulation for its latest push into the US.<\/p>\n Jim Ratcliffe hails \u2018stable investment environment\u2019 in America<\/p>\n The stinging broadside comes despite the government injecting \u00a3105m into Ineos\u2019s Grangemouth plant as recently as December, after the tycoon warned what is the UK\u2019s last ethylene plant faced closure without state support. The investment saved hundreds of jobs, ministers said at the time, and Ratcliffe hailed it as a sign of the UK government\u2019s \u201ccommitment to British manufacturing\u201d.<\/p>\n The deal announced on Tuesday means Ineos\u2019s energy division will now work with Shell to seek out untapped oil and gas reserves in the shelf, which is located 80 miles off the Louisiana coast. The group will chiefly help the Anglo-Dutch energy major to develop the Fort Sumter discovery, which is estimated to contain over 125m barrels of oil equivalent. But it will also launch more exploration projects in the area before 2030, Ineos Energy said.<\/p>\n \u201cEurope is all over the place,\u201d Ratcliffe added. \u201cFrom an investment point of view, you 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.\u201d<\/p>\n Jim Ratcliffe\u2019s wider Ineos business is currently locked in a battle to bear down on its enormous debt pile, which at the end of last year topped $18bn \u2013 13.5 times more than its annual earnings. Credit ratings agency Moody\u2019s has downgraded the group\u2019s debt twice since September, saying the company\u2019s operating performance has suffered from \u201ccontinued and greater than expected deterioration\u201d.<\/p>\n Billionaire Ratcliffe is currently overseeing a major disposal programme in a bid to shore up the company\u2019s balance sheet<\/a>. He is reportedly nearing a sale of Ligue 1 football team Nice, while his co-founder Andy Currie has reportedly put his 271ft yacht on the market for \u20ac85m.<\/a><\/p>\n A spokesman for the government told The Times: \u201cThe UK has one of the most robust fiscal frameworks in the world, which helps maintain economic stability while unlocking \u00a3120 billion of investment in our future infrastructure with disciplined day-to-day spending.<\/p>\n