More than half of oil and gas revenues still to come

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The SNP has today welcomed the publication of a report from Aberdeen University confirming the “substantial remaining potential” from Scotland’s offshore resources.

The report: Prospects for Activity in the UK Continental Shelf after Recent Tax Changes:  the 2012 Perspective – authored by Professor Alex Kemp and Linda Stephen – makes  a number of recommendations to maximise the long-term benefit of Scotland’s oil resources, and highlights the substantial investment currently underway.

Scottish Government estimates are that remaining North Sea reserves represent an estimated £1.5 trillion of wholesale value – far higher than the value extracted to date.

Commenting on the new report, Aberdeen Donside MSP Brian Adam said:

“This welcome report is the latest in a series of analyses which underline the strength of Scotland’s offshore oil and gas industry for many decades to come.

“Just last week, oil firm TAQA announced the purchase of $1billion worth of assets from BP – underlining their confidence in the North Sea’s future – which itself came on the back of a Scottish Enterprise report anticipating that 86 new North Sea oil and gas fields will begin development by 2016, with investment of £44 billion.

“The £1.5 trillion value of North Sea resources still remaining is much higher than the value already extracted.

“Instead of being squandered as they have been by successive Westminster Governments – Tory and Labour – we need the powers of an independent Scotland to ensure that oil and gas resources work for the benefit of the people of Scotland.

“Westminster governments and anti-independence parties have been saying that the oil and gas is running out since the early years of production in the 1970s – and the reality now is that more than half of the revenues are still to come.”