Oil revenues have been a key part of the economic case for independence in Scotland for decades. The discovery of large commercial oil reserves in the Forties Field \u2013 110 miles east of Aberdeen \u2013 came just three years after the election of Winnie Ewing, the first MP ever to be elected from the pro-independence Scottish National Party (SNP) in 1967.<\/p>\n\n\n\n
Proponents of independence have argued that North Sea revenues strengthen Scotland\u2019s fiscal position and control from Edinburgh would lead to better decision-making. This could include saving for future generations (like in Norway<\/a>) and support for the transition to renewable energy sources.<\/p>\n\n\n\n Those against argue that an independent Scotland would inherit a weaker budget position than the UK as a whole and that oil revenues are likely to be insufficient to close that deficit.<\/p>\n\n\n\n Receipts from taxes and royalties on North Sea oil and gas production have fluctuated significantly over the last 50 years. These have followed peaks and troughs in world oil prices, trends in investment, levels of production and changes in the tax regime.<\/p>\n\n\n\n Currently, companies operating in the North Sea pay three different taxes on oil and gas production: including a ring-fenced corporation tax, supplementary charge and petroleum revenue tax (PRT).<\/p>\n\n\n\nHow have North Sea revenues changed over the years?<\/strong><\/h3>\n\n\n\n
Figure 1: North Sea revenues (\u00a3 million)<\/h4>\n\n\n