Fresh blow over oil for Salmond

The energy expert who rubbished Alex Salmond’s claims on North Sea reserves last night dealt another blow to the Yes campaign over oil.

Tycoon Sir Ian Wood has claimed any post-Yes vote negotiations about oil could take up to four years and wreak havoc with the industry.

He also warned voters both sides of the referendum campaign are playing politics with “black gold”, claiming the UK Government is underplaying how much oil is left while the Yes campaign is grossly exaggerating the situation.

His latest intervention came as Treasury chief Danny Alexander claimed the lower oil output predicted by Sir Ian would result in public spending cuts or higher taxes in an independent Scotland.

In an interview with The Sunday Post, Sir Ian said the transition to independence is unlikely to be as smooth as promised by the SNP.

He said: “These are very complex negotiations in relation to boundary lines, how you regulate, transfer licences, decommissioning, etc.

“Companies will be dealing with two regimes, so I would say three or four years, I know Alex Salmond says it will happen in 18 months but it just won’t.”

Sir Ian, a businessman praised by both sides of the debate as the oil industry’s foremost expert, said last week the Yes camp’s claim that 24 billion barrels of oil remain in the North Sea were up to 60% too optimistic.

Asked if the Yes camp was not being honest, Sir Ian responded: “By a major sin of omission, yes.”

When questioned on whether the UK Government is underplaying the extent of oil reserves, he added: “Yes, but nothing like the same extent. I am sitting with a lot of inside knowledge which I’m not going to share but because I did the review I know what is going on.

“You have got key people on both sides and frankly they are adjusting the presentation and facts to try to get an advantage.

Renowned economist Sir Donald MacKay has said there is “no hole in the Scottish Government’s oil predictions” and backs the 24 billion barrels figure used by industry body Oil and Gas UK.

He said: “In forecasting output, the first source I looked at was the Wood review in which Ian Wood states that ‘a number of larger new fields are about to come on stream in the next two or three years and that could take production back to the level of two to three years ago’.”

Meanwhile, Alexander claimed the knock-on effect of Sir Ian’s projections could see an independent Scotland hit with a 5% cut in public spending.

He said: “What Sir Ian Wood’s figures show is that an independent Scotland, from day one, would have no choice but to make substantial increases to income tax.”