The Scottish Government predicts the country is headed for another oil boom, according to a new report.

The government's Oil and Gas Analytical Bulletin said production in Scottish waters could generate between £41bn and £57bn in tax revenue by 2018.

More than half of the total reserves in the UK Continental Shelf are yet to be extracted, it estimated.

The figures were higher than the £31.3bn projected by the UK's Office for Budget Responsibility (OBR).

The study looked at four scenarios based on increased North Sea investment and prices over the past year.

First Minister Alex Salmond said oil production was in line to rise to 2.0m barrels a day, bringing Scotland into a "second oil boom".

"It is also clear that a wide range of credible forecasters expect oil prices to remain close to present levels, or rise further in future years - with some organisations, such as the OECD, suggesting that prices could exceed $150-a-barrel by 2020," he said as he met leaders in Aberdeen.

"Even with a cautious estimate of prices remaining at $113 a barrel being used, it's clear that Scottish oil and gas could generate more revenues than has previously been assumed."

The bulletin was published by the government after a leaked cabinet document revealed a lower than expected oil and gas cash set out by the OBR along with a bleak economic future for the country.

The oil and gas sector is a key part of the Scottish economy which was estimated to contribute around £25bn to Scottish GDP, approximately 17% of the total in 2011.

The North Sea oil and gas sector is also a major exporter, boosting the UK balance of payments by £40bn in 2011.

"Analysis by Professor Alex Kemp of Aberdeen Universityiv estimates that, when Scotland's share of the UK Continental Shelf (UKCS) is demarked using the median line, it accounted for 96% of UK offshore oil production and 52% of offshore gas production in 2011," the bulletin said.

"This resulted in Scotland accounting for an estimated 78% of total UK hydrocarbon production in 2011."

Investment in 2012 was worth £11.4bn, the highest level for 30 years and is expected to increase to £13bn this year.

There are an estimated 2,000 companies in the oil and gas supply chain operating in Scotland, providing services to the offshore industry worldwide.

RD

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