Mike Tholen, economics director at trade body Oil and Gas UK, said jobs and production would be lost at a time when activity in the industry was already slowing.
According to Fitch, the biggest producers, including BP, BG Group, Shell and Chevron, are likely to see higher tax bils of £120m to £250m per year as a result of the Chancellor's shock increase in the tax rate on profits.
The shock move was announced by George Osborne in his second Budget to pay for a £1.9bn "fair fuel stabiliser", which will reduce fuel duty by 1p a litre, instead of the 5pc rise scheduled under Labour's fuel duty escalator.
But oil companies have warned the move will lead to less domestic oil production, with more reliance on Middle East imports.
Mr Tholen told the BBC: "What you see is the UK's reputation as a global player in oil and gas industry falter because of this. Many companies from abroad are looking at whether to invest in the UK, to help us get the new oil and gas reserves out of our waters. What we see is that image yet again shattered because of the tax change."
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