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Daily Record
Daily Record
Politics
Chris McCall

Scottish independence case could be 'boosted' by rising North Sea oil prices

The case for Scottish independence could be boosted in the short term by rising oil prices, economists have said.

UK Government revenues from North Sea oil and gas production in 2022 are on track to be at their highest level in over a decade.

But the SNP could struggle to make political advantage as the party is committed to moving the economy away from fossil fuels.

The Scottish Greens, who hold two cabinet positions, are also firmly opposed to any new drilling in the North Sea.

The war in Ukraine and a spike in global demand after covid lockdowns were lifted has caused energy prices to spike, causing misery for households already struggling with inflation.

Oil prices had plummeted in the years before the pandemic but experts from the Economics Observatory said there had since been a "dramatic turnaround".

North Sea revenues jumped from just £500 million in 2020/21 to £3.2 billion in 2021/22.

The report found that North Sea revenues could rise further to £7.8 billion in 2022/23.

It said: "Government revenues from North Sea oil and gas production in 2022 are on track to be at their highest level in over a decade. This may give a boost to the campaign for Scottish independence in the short term."

It added: "This may well change the context of debate around Scottish independence and be more favourable to the ‘Yes’ campaign.

"But it is important to note that the long-term trend for oil and gas revenues is for a phased decline.

"Oil and gas production peaked in 1999 and remaining reserves are now in more challenging and costly areas of the North Sea.

"At the same time, governments – including the Scottish government, in which the Green Party holds two ministerial positions – are committed to the transition from fossil fuels to renewable forms of energy, with the objective of reaching net-zero carbon emissions."

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