An increase in the rate of oil and gas recovery in the North Sea by 1% would result in £22bn of extra tax revenue.

Energy Minister Fergus Ewing is to tell the Scottish Parliament that maximising the amount of oil and gas recovered from existing oil wells would create substantial benefits for the Scottish economy.

The Minister says this would increase the level of tax and create further opportunities for innovation and job creation.

Around 40% of resources are recovered from oil and gas fields in the North Sea, compared with 48% in Norwegian territory.

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There are 24bn barrels of oil still to be recovered in the North Sea, with a wholesale value of £1.5trn.

Energy Minister Fergus Ewing said: "No sector delivers more for our economy than oil and gas, and maximising the percentage of the oil and gas recovered should be a priority for everyone involved in the industry.

"Just imagine the benefits if we were able to use the enormous skills, innovation and creativeness that is present in the sector to increase recovery rates by 10%.

"Maximising recovery is at the heart of this Government’s plan for the sector – a plan outlined in the strategy we developed with the sector – and the benefits are not just financial.

"The oil and gas sector is one of Scotland’s biggest success stories and is one of the bedrocks of Scotland’s economy – the sector accounts for more than 90% of total UK oil and gas tax receipts and supporting 440,000 jobs across the UK, and the whole UK stands to benefit from maximising recovery. The innovation this will require will only benefit Scottish Oil and Gas businesses, and help us build upon our world-leading position in the sector."

(IT)