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Scottish independence: Scottish government predicts 'oil boom'

Its first Oil and Gas Analytical Bulletinpredicts that production in Scottish waters could generate up to £57bn in tax revenue by 2018.

It also says more than half the value of total reserves in the UK Continental Shelf are still to be extracted.

The figures are higher than those projected by the UK's Office for Budget Responsibility (OBR).

The OBR predicts oil tax revenue will drop from £6.7bn this year to £4.1bn by 2017-18.

The Scottish government bulletin highlights four potential scenarios that it says, taking account of recent trends in investment and prices, could result in the industry generating between £41bn and £57bn in tax revenue between 2012-13 and 2017-18.

These scenarios include the assumptions that production will rise in line with industry forecasts and that prices will rise in line with Department of Energy and Climate Change (DECC) forecasts, rather than the OBR's forecasts.

 

Energy capital
The report also said Scotland's position as the EU's energy capital had been reaffirmed, with the country estimated to be the largest producer of hydrocarbons in the EU, accounting for 64% of the EU's total oil production in 2010.