Britain’s oil resource is almost wholly located in Scottish waters in the North Sea.  The UK Government has consistently refused to include oil earnings in Scotland’s GDP, and leaving that enormous income out of the picture, actually claims that the UK subsidises Scotland.  One wonders whether the USA could possibly deny Texas or Alaska their oil income, or whether Canada could deny Alberta its oil revenues.  Recent revelations from release of 30 year-old documents show how the Government lied repeatedly to the Scots about the value and significance of North Sea oil.   In contrast see the estimates below :

• Over the last 36 years the UK oil industry has, in 2005 money values produced 35 Billion BOE = barrels of oil equivalents; and invested £222 Billion in exploration and capital development/investment; spent £ 120 Billion on operating the assets, and provided £ 215 Billion in tax revenues to the UK Exchequer

• In 2005 the UKCS [UK Continental Shelf] produced 3.2 million barrels [boe] per day. The industry spent £4.7 Billion to operate the offshore fields, pipelines and onshore  terminals.  In the same year the oil industry contributed close on £ 10 billion to the United Kingdom Exchequer

• In 2006 the production dropped to 3.0 billion boe per day but due to higher prices returned higher earnings and provided £ 10 billion in tax to the UK

• The UK Continental Shelf is ranked ninth in the world in terms of petroleum resource.  Over 200,000 skilled jobs are directly linked to the oil industry

• The oil and gas supply chain has Scottish exports accounting for £4 Billion in 2004 up from £2 Billion in 1998

• Current tax take as a % of BOE is 75% which is the highest level of tax charged to any industry and nearly the highest level anywhere in the world.