Thursday, September 18, 2014

Scotland In dependency Threat For Whom


In continuation to my previous article http://www.ianalysis.co.in/2014/09/scotland-independence-highly-required.html Many of my readers has asked that if Scotland gets out of Euro will the economy stand on its own without any support and why Euro don’t want Scotland to leave euro. The REAL Reason Britain is Freaking Out About Scottish Independence-Scotland’s North Sea Oil Reserves. Well the biggest reason of not letting Scotland to be free is that North Sea oil production through which Britain earns its revenue. An independent Scotland would inherit around 13 billion barrels of the current UK's oil and gas reserves but could see income from the North Sea plunge after 2018.Now moving ahead further its being found that The Edinburgh-based firm has said that production in Scottish waters could increase by around 10% to 1.3 million barrels per day in 2018, from the current 1.17m barrels daily this year, following huge investment by oil and gas giants like BP in areas such as West of Shetland.

 So now its well clear why Scotland independency would be so much beneficial for an economy and for the Euro if Scotland don’t become independent.  If Scotland stays with Euro it has to carry on the legacy of slow growth and Euro based valued assets and carry on the burden of struggling economic growth. Now if Scotland gets independency then the revenue and investment revenue from the North Sea oil production would not be possible to be aprt of the Euro and also for reducing the burden of Euro based asset valuations.

In August, oil tycoon Sir Ian Wood said the Scottish Government had over-estimated reserves of oil left under the North Sea by between 45-60%. He suggested there were about 15 billion to 16.5 billion barrels of recoverable oil left.  In another estimates on how much oil and gas is left in all of the UK’s waters vary between 12 and 24 billion barrels. Indeed, taking the 24 billion then multiplying it by a price of $100 per barrel has allowed the SNP to talk about £1.5 trillion worth. Well enough for Scotland and Enough for Euro Zone Nations and dollar exploitation.
Now if Scotland becomes independent then:
The UK can now borrow cheaply using the giant Scottish oil reserves as collateral
If Scotland leaves, the collateral (oil reserves) is no longer available
So the cost of borrowing money for Britain skyrockets

 Hence it’s   a huge reserve and huge investment opportunity followed with Euro and US politics to make money for the Bureaucrats. Further Joint ventures with US based oil firms would be entered and Euro and Dollar will be printed by the capitalist where as the people of Scotland would struggle with slow economic growth.  Now this premium segment have been crushed by the Labor government increased corporation tax for oil firms in 2002 and 2006; in 2011 the coalition raised it again, crushing investment. Westminster has churned through 14 energy ministers in 17 years. In theory the oil industry’s crucial contribution to a new Scottish state ought to guarantee careful treatment from the country’s leaders. So remember if it doesn’t get Independence Euro zone will use the resources of Scotland to save them, letting the people of Scotland to starve.

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