Indyref: Oil Academic Backs 'Yes'

Alex Russell says he's backing independence to ensure that Scotland's oil wealth is used to benefit Scots.

The Professor in Petroleum Accounting at Robert Gordon University in Aberdeen says he agrees with Scottish Government plans.

Professor Russell says they'll bring stability and predictability to the North Sea's taxation scheme - that's despite the bosses of BP and Shell coming out in favour of retaining the union.

Professor Russell said:

"There is no question that had Scotland been an independent country in 1975, that Scotland would be extremely wealthy now and there would be no national debt. The weight of evidence is that the UK government has failed to invest the harvest from the North Sea oil for future generations.

"Would an independent Scotland look after Scotland’s oil and gas resources better than the current UK government? I believe it would, and would ensure that the people of Scotland benefitted much more than just now. What is more, by providing a much more stable fiscal regime - Scotland can increase confidence and thus investment in the industry. That is why I am voting Yes and I encourage others to do the same next week.

"The incentive for additional exploration and production in as yet unexplored areas of Scotland's seas, for example, to the west of Scotland including the Sea of the Hebrides, must be a lucrative venture for the oil industry.

"The oil forecasts from the Office of Budgetary Responsibility are ludicrously pessimistic, and a huge understatement of the future potential of North Sea production. The forecast from Professor Alex Kemp, that up to 24 billion barrels appears plausible, is one I agree with, and one backed by Oil and Gas UK.

"This outcome is all the more probable given the truly brilliant and innovative approach of the North Sea oil industry towards finding and exploiting reserves. Our oil industry is second to none in leading the way not only in developing new technology but also in inculcating a culture of mutual support amongst North Sea operators. 
 
"Though the quantities of oil and gas left are lower than what has so far been removed, the prices are higher, so the value of the second half of Scotland's oil opportunity may be even greater than the first forty years.  We need to grasp that opportunity for Scotland through a yes vote."

Welcoming Professor Russell's support for a Yes vote, Yes Scotland Chief Executive Blair Jenkins said: 

"When an expert of Professor Russell's calibre speaks out strongly in favour of independence as the best way of delivering a better deal for both the North Sea oil an gas industry and the people of Scotland, it is important that everybody takes note.

"While the No campaign has continually talked down Scotland's oil wealth - despite enjoying the revenues that flow from it into the Westminster Treasury, Professor Russell's expert opinion makes clear that Scotland's oil and gas industry has a long and fruitful future ahead of it.
 
"Under Westminster's stewardship, Scotland's vast oil and gas reserves have been largely squandered. It's time this was put right, not just for people today but for generations to come.

Only a Yes vote on Thursday can we guarantee the powers needed to get the maximum benefit from Scotland's natural resources."

Labour MP and Shadow Energy Minister, Tom Greatrex said:

“Expert after expert is saying the same thing – the SNP are dramatically overestimating the value of oil and basing our future on blind faith and guess work.

“This is too important to get wrong. The difference in oil revenue one year to the next can be the equivalent of what we spend on schools in Scotland. The fall in the oil price this week demonstrates just how volatile prices, production and revenues from the North Sea are.

“Families in Scotland cannot afford Alex Salmond getting his sums wrong. Basing our economy on oil is a huge risk. It is an even bigger risk to overestimate how much it is worth, putting the funding for our public services, welfare and pensions at enormous risk.

“Why would we take this huge risk to our NHS when faster, safer, better change is coming? We can have what the majority of Scots want – more powers for Scotland without taking on all of the risks of separation. It’s the best of both worlds. We should say No Thanks to separation on 18 September.”