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First Minister claims Scotland can look forward to ‘second oil boom’

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Scotland will benefit from a £48 billion oil revenue “boom” in the coming years, according to a new Scottish Government document.

The report has snubbed the Office for Budget Responsibility (OBR) estimates for the period between 2013 and 2018 to produce a figure £11bn higher than the independent body’s estimate.

The first of four Scottish Government Oil and Gas Analytical Bulletins spells out four potential scenarios that, taking account of recent trends in investment and prices, could see the industry generate between £41bn and £57bn in tax revenue between 2012-13 and 2017-18.

First Minister Alex Salmond said oil production is set to rise to two million barrels a day, taking Scotland into a “second oil boom”.

However, opposition parties criticised the Government’s decision to disregard the independent body’s figures, with Labour accusing the SNP of “cooking the books”.

Mr Salmond said: “Even with a cautious estimate of prices remaining at $113 a barrel being used, it’s clear that Scottish oil and gas could generate more revenues than has previously been assumed.”

The figures were published by the SNP Government after a leaked cabinet document last week set out a bleak economic future for Scotland following independence because of the lower than expected oil and gas cash set out by the OBR.

Scottish Labour MSP Richard Baker said: “Last week we found out that in private John Swinney thinks that oil revenues will fall in a separate Scotland, bringing into question the affordability of even the state pension.

“So on Alex Salmond’s orders he has spent the weekend cooking the books to come up with an extra £26bn out of thin air.”