By William C McLaughlin BA(Hons), MBA
Let's dispel once and for all the myth that Scottish oil and natural gas reserves are declining and will run out for good in another forty years.
The Scottish North Sea has been 'pumping' out oil and natural gas for around forty years. The current projection is that there is around forty years of oil and natural gas reserves remaining in the Scottish North Sea, worth around £1 trillion in associated revenues.
ENEGI OIL has developed an innovative, unmanned, oil production buoy system, which will transform the economics of a host of undeveloped discoveries in the Scottish North Sea, and could be used effectively in marginal and end of life fields to extend the life of these fields considerably. Extraction technology like this one could well extend significantly the life of the Scottish North Sea for another ten or twenty years (well beyond the forty years forecasted limit), giving a total oil and natural gas production life for the Scottish North Sea of close on one hundred years since the time extraction began.
Then, we have the massive Scottish North Atlantic sector oil and natural gas fields, off Scotland`s west coast, which is predicted to contain two or three times the amount of oil and natural gas as the Scottish North Sea sector. The Scottish 'Atlantic Frontier' for oil and natural gas goes way out beyond Rockall. London has earmarked over 2500 licensing blocks for sale in the Scottish North Atlantic sector.
Assuming oil and natural gas extraction rates in the Scottish North Atlantic sector will be similar to the Scottish North Sea, then it will take a very long time indeed to empty the Scottish North Atlantic sector of oil and natural gas. If it takes around 100 years to deplete the Scottish North Sea of oil and natural gas, and the Scottish North Atlantic sector is two or three times larger in oil and natural gas reserves, then work out the maths for yourself. It`s mind boggling in terms of sector life span, reserves and revenue.
Finally, we have Scottish mainland oil and natural gas reserves – a well kept secret – the oil and natural gas (not including methane) reserves right under Scottish feet.
Many years ago I read a report from an eminent Professor of Oil Economics who stated that the Scottish mainland oil and natural gas reserves were as large as (or more than) all of the Scottish North Sea reserves before extraction began in that sector. Assuming that report is correct, and I have no reason to doubt its integrity, then we have over 100 years of oil and natural gas right below us in Scotland.
The income from what remains in the Scottish North Sea, all of the Scottish North Atlantic sector, and all the Scottish mainland oil and natural gas, will come to trillions and trillions of pounds. This does not include the thousands of years of Scottish onshore and offshore coal-bed methane gas reserves.
We are talking about a lot of years, a lot of oil and natural gas, and a lot of revenues remaining. The Scottish oil and gas patient is far from dead and is, in fact, in very rude health. An independent Scotland could not only restructure its economy and create a Sovereign Scottish Oil Fund, but also achieve one of the most egalitarian and caring societies in the world.
Do the media and politicians in other oil producing countries moan and whine about their oil declining and its price volatility? Of course they don't. They get on with it and enjoy their oil revenues, and some invest the revenues wisely for posterity.
Hand wringing about Scottish oil and natural gas declining is the equivalent of winning millions on the Lottery Jackpot and moaning that it is declining after spending the first pound or that the volatility of the foreign exchange rate when you travel or invest abroad, decreases your spending power in some cases. It's all the more ironic when somebody stole your winning ticket.
Do NOT listen to the Unionist scaremongers – there is no 'sunset' on Scottish oil and gas – more like 'sunrise'. This vast wealth is only one revenue stream and Scotland is blessed with many more. Scotland is a very capable and very wealthy country.
Don't take my word for it – check out the asset data for yourself. Scotland is literally floating in oil and gas – the birth-right of every man, woman, and child in Scotland. Why on earth therefore, would anyone in their right mind, choose to give away this birth-right? A `NO` vote in 2014 will indeed do just that and continue to give away this super-massive Scottish wealth to London.
In years to come, when your children and grandchildren are old enough to ask you what happened to their birth-right, what will your reply be?
As President Roosevelt once said, "Do not tell me that it is impossible".