Have you heard? Scottish nationalists have a referendum coming up on the 18th to have a separate nation of 5 million people. Most of us have not even heard the news! This is greatly interesting to me, because the question comes up in my mind - how would the new country support itself?
It turns out, North Sea oil revenues would go to the independent Scotland. The current UK North Sea generates 1.5m barrels of oil per day, or about 5 billion euro's in tax revenue. This would be more than 15% of Scotland's tax revenue, and could provide strong support to the new nation.
However, the large oil companies that are in the region (like BG and Total) will be interested in negotiating better tax concessions, as well as easier operational regulation. If Scotland cannot quickly win support from the large companies, it could be off to a shaky economic start.
Sounds a bit tricky, anyone with any insights care to weigh in?