Scottish Report Says UK Oil Forecasts Are Pessimistic

Future North Sea oil and gas revenues could be six times higher than a UK economic watchdog has forecast, according to a report.

The claim was made by N-56, which describes itself as an “apolitical business organisation”.

The UK Office for Budget Responsibility (OBR) has forecast North Sea revenues of £61.6bn between 2013/14 and 2040/41.

But N-56 said the figure could be as high as £365bn, if a series of recommendations were implemented.

N-56 was founded by Dan Macdonald, who is a member of the advisory board for Yes Scotland, which is campaigning for independence.

The Scottish and UK governments have repeatedly clashed over the future of the oil and gas industry, particularly around forecasts from the OBR on the amount of cash it expects to be raised from the North Sea.

Scottish ministers have argued that the OBR forecasts are based on a “very low estimate of future total production”, while its own figures have been criticised by opponents who claim they are overly optimistic.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza