The Scottish economy has benefited enormously from the exploitation of oil and gas from the UK Continental Shelf (UKCS). Thus the exploration, development and operating expenditures required for production and processing are to a considerable extent located in Scotland. They have made a major contribution to the national output and employment in the sectors involved. The Scottish economy also shares in the UK benefits to the Exchequer and balance of payments emanating from the production revenues and tax receipts from the UKCS. There is continuing interest in the share of these revenues which would accrue to Scotland as a separate entity. Estimation of these, particularly the potential hypothetical taxation receipts, is not straightforward, and this paper produces detailed estimates for the period 2000 – 2013. The results are tested for consistency against national UK data. While the prime interest is in the taxation revenues the results for gross production revenues, and main expenditures are also shown.

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Professor Alexander G. Kemp and Linda Stephen