24.02.14
Independence arguments over oil and gas industry reforms
David Cameron says a coming ‘revolution’ in oil and gas extraction worth £200bn over 20 years will only come to fruition if Scotland stays in the United Kingdom.
The UK Cabinet is meeting in Aberdeen today, six miles away from the Scottish government’s own Cabinet meeting. First minister Alex Salmond says North Sea oil and gas reserves are worth £300,000 per person in Scotland.
The latest polls suggest that ‘no’ has a 10-12 percentage point lead in the independence debate, with about 48% of people against independence, and 37% likely to vote ‘yes’ in the referendum next year.
Cameron is to agree to adopt all the recommendations made in an independent report by Sir Ian Wood, who argues that a new regulator and more energy company cooperation would boost production by 3bn-4bn barrels over the next 20 years. His final report is published today.
Wood said: “These recommendations received overwhelming industry support in written feedback and at various meetings. I have also been encouraged by the positive engagement from DECC, HM Treasury and senior government ministers.”
Downing Street said the UK was “well placed to absorb the shocks of oil price volatility that would dramatically affect a small country's budget”.
The Scottish government also backs a new Aberdeen-based oil and gas regulator, but disagrees that the union must remain in place to make the most of the industry.
(Image: Danny Lawson / PA Wire)
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