There have been a number of threads on ATS recently about the upcoming referendum on Scottish independence. Given it's importance to the UK economy
to date (and the importance it will play in the Scottish economy if the Scots vote do for independence) the matters of Scotland's oil has been
repeatedly raised in these threads.
The video posted below is a BBC Scotland production from about 2008 and discusses in detail the past, present and future benefits that Scotland's oil
has given the UK economy.
Scotland produces more oil per day than Kuwait does and, albeit was supposed to have run dry by 1995, it now transpires that there is in fact as much
oil left yet to be extracted as has been used since it's discovery in the early 70's.
At the time the documentary was produced the revenue from oil production was gained from the licences companies must purchase to begin their search
(from the thousands to the millions per license); then there's corporation tax (circa £5 billion); then there's a supplementary charge (an additional
tax which bring in £3.4 billion), Petroleum Revenue Tax (£1.7 billion).
That's a total of £10.1 billion before the oil is even brought ashore.
Once ashore that oil generates a further £30 billion in fuel duty and VAT for the British economy.....a total then of £40.1 billion. A significant
sum, especially when considered along side the job creation (highly skilled and highly paid jobs) the subsequent income tax and national insurance.
Part 4 of the vid explains how Thatcher's monetarism experiment (the 1980's reshaping of the UK economy) would not have been possible without the
cash being generated by Scotland's oil. Sadly, it would seem, the revenue from that oil paid for the social security bill of those times.
When asked if it was indeed 'Scotland's oil' ( part 5) Alex Salmond replies that it is Scotland's oil (given 90% of the fields lie in Scottish waters)
but that you could argue that it has not been Scotland's oil to date (with £250,000,000,000 of revenue having gone directly to the coffers of
Westminster over the past 25 years.
I always get suspicious when politicians shout in unison....which....when it come to Scotland they are. They want us to stay not go - they claim.
If Scotland really was the financial drain on the UK economy it is persistently claimed to be, why in heaven's name aren't they delighted to see us
leave? Is is benevolent concern over the welfare of the Scottish people? I don't think so - as usual I think it's money - pure and simple.
edit on 22-1-2012 by christina-66 because: (no reason given)
I just love how the politicians and oil companies claim that it costs so much and is so hard to produce oil, but it is a billions or trillions of
The countries oil should belong to the state it comes from.
Along with the profits it brings, thats how the arabs work it.
And if they had open and free societies, rather than dictators...errr shieks, they would be happy people.
We really need to get away from oil.
thanks for posting this ..it was well worth watching and it does raise questions I would have to my own country of Canada ...and should raise
questions to all other nations ..why get outsiders to do a job that we can do and reap the benifits ourselves ...Why would one country take on the job
of producing another countries resources other than profits ..It would stop a lot of wars and provide for much needed jobs of each mother country
...just thinking threw my keeboard ...peace
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