BP PLC's recent announcement of plans for a multibillion-dollar investment in the UK North Sea has whipped up a political storm, with Scottish nationalists again sounding calls for independence from the UK.
"We believe Scotland should have responsibility for its own vast natural resources, and an independent Scotland will be able to make the most of these massive revenues," said a spokesman for Alex Salmond, the country's First Minister.
"The figures show that, with a geographical share of our offshore resources, Scotland would be the sixth-wealthiest country in the world—ten places ahead of the UK at 16th," said the country's finance minister John Swinney.
Salmond's eyes glow
Salmond expressed especial delight over BP's recent announcement of a £4.5-billion oil project west of the Shetland Islands. But his eyes really glowed over BP Chief Executive Officer Bob Dudley's forecast that there would be production from large fields until 2050.
"Although it began over 40 years ago, the story of the North Sea oil industry has a long way yet to run," Dudley said.
"BP has produced some 5 billion bbl of oil and gas equivalent so far from the region and we believe we have the potential for over 3 billion [boe] more."
"After some years of decline, we now see the potential to maintain our production from the North Sea at around 200,000-250,000 boe/d until 2030," said Dudley. "And we are working on projects that will take production from some of our largest fields out towards 2050," the BP executive said.
Dudley's estimate and assertion that the North Sea now has the potential to maintain production of as much as 250,000 b/d until 2030 was far more optimistic than other recent forecasts.
Political drums beat on
A report by industry body Oil & Gas UK suggested that the North Sea could run out of oil and gas as early as 2028 if production continues at its current rate. OGUK's report also suggested that there could be as little as 14 billion boe left in the UK North Sea.
Meanwhile, Salmond continued to beat his political drums, calling for greater regulatory certainty for the North Sea's oil and gas industry, following a year in which producers were hit by an unexpected hike in their tax rates in the UK government's annual budget.
"The UK government needs to give more certainty to the industry and restore confidence that has been badly dented by the Treasury's hike," said Salmond.
"Indeed, if it had not been for that budget blow, it would be at the center of an unprecedented boom in jobs and investment," said an ebullient Salmond.
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