Scotland v Norway


Another political row is underway this week as Government ministers from both the Scottish and Westminster Parliaments head north to Aberdeen, the base of the UK's oil industry.

Now this is no accident, of course, as both sides in the independence debate make claims about why Scotland would be better off on its own directly controlling the development and supply of oil and gas from the North Sea or, alternatively, sticking with the rest of the UK because a larger country is better able to withstand the fluctuations in a volatile world market.

I pondered this question for a while and the obvious question in relation to the 'size matters' claim is "Well, what about Norway?" - aren't our Nordic neighbours (a country similar in size to Scotland) recognised as being just about the smartest people in the world when it comes to exploiting their oil resources?

As far as I know that's a true statement and the fact that Norwegians have not squandered their oil revenues on a generation or two is very admirable - instead Norway has built up a giant 'oil fund' the benefits of which are intended to last for many years into the future.  

So, on this point at least I think the No campaigners are talking through an unusual part of their anatomy.

Scottish independence: Cameron and Salmond focus on energy

The full cabinets of Mr Cameron (left) and Mr Salmond will meet less than 10 miles apart

The North Sea oil and gas industries will be stronger with Scotland staying within the United Kingdom, David Cameron has said.

The prime minister pledged to "continue to use the UK's broad shoulders" to invest in the industry to attract business and create jobs.

But Scotland's first minister Alex Salmond said independence would bring "enormous" potential to the sector.

On Monday both men will chair cabinet meetings in Scotland.

The full UK cabinet will meet in Aberdeen - only the second time in more than 90 years that the full UK cabinet has met in Scotland.

And Mr Salmond will hold a cabinet seven miles away in Portlethen.

The two cabinet meetings are expected to coincide with retired oil tycoon Sir Ian Wood publishing a major report into the future of the North Sea oil and gas industry.

Long-term plan

In a speech a fortnight ago, the prime minister delivered a plea for Scotland to remain in the Union, pledging to "fight with all I have to keep us together" ahead of the independence referendum on 18 September.

Ahead of Monday's cabinet meeting, Mr Cameron said the cabinet would set out "how the UK government can maximise the benefit of North Sea oil and gas to the UK economy for decades into the future, giving a vital boost to local communities and families across Scotland."

He said: "For the past 300 years, Britain has led the way in finding new sources of energy. It is the strength of the UK's broad-based economy which can make the difference and ensure we can invest in our energy for the long-term future."

Mr Cameron pledged to "continue to use the UK's broad shoulders" to invest in the oil and gas industry in order to "attract businesses, create jobs, develop new skills in our young people and ensure we can compete in the global race".

Mr Salmond announced that the energy department of an independent Scotland would have joint headquarters in Aberdeen and Glasgow.

The first minister described Aberdeen as Europe's "oil and gas capital", and therefore the "natural home" for a new energy department, while Glasgow was "fast becoming the most influential low-carbon engineering centre in the UK".

He added: "With independence we would have new powers in areas such as energy regulation and the ability to target and apply financial incentives.

"With a new Scottish-based Energy Department and control over key economic levers, the potential to boost the energy industry and bring benefits to consumers and the wider economy would be enormous."

Sir Ian's interim report, which was published in November, made a series of recommendations aimed at maximising the economic benefit from the UK's remaining offshore resources.

These included setting up a new regulator to oversee the industry.

The Scottish cabinet usually meets in Edinburgh, but regularly holds sessions in town and cities across Scotland, especially in the summer months.

Mr Cameron's predecessor as prime minister, Gordon Brown, held a meeting of the UK cabinet in Glasgow in 2009.

The UK cabinet had last met in Scotland in 1921 - when Winston Churchill was the Colonial Secretary and a Liberal MP for Dundee.

The meeting was held in the council chamber at Inverness Town House because Prime Minister Lloyd George was on holiday in the Highlands.

On the agenda was the Irish emergency, unemployment and Armenian refugees.

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