Independence blueprint was predicated on an oil price of $110 barrel, but many forecast a decline to nearly $50
If there is one thing guaranteed to punch a hole in the Scottish economy it is a plunging oil price. Since the summer the wholesale value of Brent crude, the key North Sea price used as a global benchmark, has nearly halved from last year’s average of $109 a barrel. This month it fell below $60 for the first time in more than five years.
Many forecast a further decline to nearer $50, raising substantial challenges for the North Sea industry – the largest and most valuable industrial sector in the British economy, and pressuring the Treasury to lower the heavy tax burden on the sector.