Ineos is doubling down on American energy investment at the expense of Europe, striking a fresh partnership with Shell in the Gulf of Mexico as its chairman, Sir Jim Ratcliffe, condemns UK and European policy as too unstable to commit capital.
The chemicals giant has already poured more than $3 billion (£2.2 billion) into the United States, a figure that includes a substantial onshore business in the Eagle Ford shale basin in South Texas, where it operates more than 2,300 wells across 172,000 acres.
Deepening the US Footprint
Ineos Energy, the group’s oil and gas division, has acquired a 21 per cent working interest in a portfolio of assets from a Shell subsidiary. The two companies will jointly invest in exploration and production in the Gulf of Mexico — the body of water that US President Donald Trump has controversially referred to as the Gulf of America.
The deal covers three specific projects: developing Shell’s Fort Sumter oil and gas discovery, drilling the Sisco exploration well, and identifying a further exploration well by the end of 2030. Fort Sumter was first announced by Shell in July 2016, when the company estimated initial recoverable resources at more than 125 million barrels of oil equivalent. The project is currently in the feasibility stage, with commercial production expected to begin in 2025 and peak in 2026. Crucially, the assets lie within tieback distance of Shell’s Appomattox platform, a major deep-water hub that Ineos can use to keep costs under control and move quickly.
Shell operates the Appomattox facility and holds substantial interests elsewhere in the Gulf, including Ursa, Mars, Olympus and Perdido. In May 2025 Shell increased its stake in the Ursa platform to 61.3484 per cent after acquiring interests from ConocoPhillips for $735 million. The price of the Ineos transaction was not disclosed.
David Bucknall, the chief executive of Ineos Energy, said the partnership supported “energy security”. He added: “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.”
Bucknall, who previously held senior roles at BP and joined Ineos Energy in November 2021, said the company was also looking to provide tools for people to decarbonise their energy consumption. Brian Gilvary, another BP veteran, serves as executive chairman of Ineos Energy.
‘Europe Is All Over the Place’
Sir Jim Ratcliffe has been blunt about why he is channelling investment across the Atlantic rather than keeping it at home. “Europe is all over the place,” he said. “From 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.”
The British billionaire, who also co-owns Manchester United, has previously warned that chemical production is plunging across Europe and called for a rethink of taxation and policy to “save” the industry. He accused the UK government of actively discouraging domestic oil and gas production through punitive windfall taxes and negative political messaging, forcing the country to rely on overseas supplies. “While the rest of the world incentivises production through sensible taxation, the UK is doing the opposite,” he argued.
The consequences are clear on the North Sea, where Ineos’s Forties Pipeline System has seen oil flows drop by 40 per cent over the last six years. A third of its processing capacity has been closed, a decline Ratcliffe attributes directly to a lack of investment in new fields, exacerbated by windfall taxes and “mixed messages” from politicians. He has also pointed out that UK gas is needed as a feedstock for future hydrogen production.
Ratcliffe has described UK energy policy as “crap” and “completely irresponsible”, and he is not alone in his assessment. The Chemicals Industry Association has warned that British manufacturers pay energy bills 400 per cent higher than competitors in the United States and 100 per cent higher than in Europe — a gap that has contributed to a decline in domestic manufacturing. Ratcliffe cited British Steel at Scunthorpe as an example of an uncompetitive energy policy forcing government bailouts.
The broader European chemicals sector is under severe structural pressure. Operating rates in many European countries have fallen to around 70 per cent owing to prolonged overcapacity and stagnant demand. New capacity additions, particularly in Asia, are expected to further expand supply. European producers face energy costs three to four times higher than their US and Asian rivals because of reliance on imported natural gas. The result has been a sixfold increase in plant closures since 2022, wiping out 37 million tonnes of production capacity.
Sir Jim argues that the UK cannot survive without hydrocarbons, which make up 75 to 85 per cent of the country’s energy base, and has expressed scepticism about powering the entire nation on wind alone. He has called for the UK’s carbon reduction policy, including the Emissions Trading Scheme, to be rethought, warning that decarbonisation efforts risk plant closures and job losses. Ineos has already had to pause investment in efficiency projects because of the combined pressure of US tariffs, higher energy prices and the cost of meeting carbon targets.
Ratcliffe’s personal interests extend beyond energy. Through Ineos, he is a co-owner of Manchester United, having acquired a 25 per cent stake in December 2023 for £1.3 billion in Class B shares from the Glazer family, who retain the largest holding. He later increased his ownership to 27.7 per cent after a capital investment and has assumed control of football operations, vowing to restore the club to its former heights. He also committed an additional $300 million for stadium infrastructure improvements.
Ineos, one of the world’s largest chemical companies, reported revenues of €16.2 billion (£12.6 billion) in 2024.
