Delegates at an oil and gas conference have been told the economy will be petroleum-driven for decades to come, with higher returns than previously estimated.
About 24billion barrels could still be taken from the North Sea, with the total financial value more than what has already been extracted to date, the conference in Edinburgh heard yesterday.
First Minister Alex Salmond, who gave the keynote address, put the potential wholesale value at £1trillion.
Looking to the next 40 years, the conference heard optimistic projections for oil and gas extraction, revenue and industry lifespan.
Malcolm Webb, chief executive of industry body Oil & Gas UK, said hydrocarbons would drive the UK economy for decades.
He said: “Call me a wide-eyed optimist if you like, but I remain of the view that (prospects) will be, and indeed must be, good.
“On the question of the size of the remaining resource, I personally suspect it will eventually be shown to be even more than the 24billion barrels that we currently estimate.
“Experts have consistently underestimated the subsequently proven reserves of the UK industry.”
Mr Webb said the biggest reserves of oil and gas are a thing of the past but new challenges led to higher demand for skilled engineering in smaller and more complex wells.
Mr Salmond opened the conference by calling for better engagement from the UK Government on future changes to the tax regime.
He added: “The value of the resource that’s left is more than £1trillion.
“In other words, there is more than half of the economic impact of oil and gas still to be realised over the next 40 years.”
On tax, Mr Salmond said Chancellor George Osborne must “rebuild trust” with the industry.
“The tax hike last year in the Budget, without consultation, damaged confidence as well as damaging economics,” he said.
“The mandatory consultation that we put forward would be a way of rebuilding trust and confidence with the industry, and would enhance the credibility of the tax regime.”
The conference, called Oil & Gas and Scotland’s Future, was organised by the Scottish Council for Development and Industry.
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