The Scottish government has published a report, which says that the country will witness a renewed oil boom in the next few decades and confirm its position as a major oil-producing nation and European energy powerhouse.

The Oil and Gas Analytical Bulletin said that Scotland’s oil and gas industry is expected to generate between £41bn and £57bn in tax revenue between 2012-13 and 2017-18.

According to the study, oil and gas production in Scottish waters is estimated to generate about £48bn in tax revenue over the six-year period.

In the European Union (EU), Scotland is estimated to be the largest producer of hydrocarbons, accounting two-thirds (64%) of EU’s total oil production in 2010.

The industry, both onshore and offshore, is expected to contribute nearly £25bn to Scottish Gross domestic product (GDP), which is about 17% of the total in 2011, while the North Sea oil and gas sector boosted the UK balance with payments by £40bn in the same year.

Industry body, Oil and Gas UK, has calculated that about 24 billion barrels of oil and gas equivalent could be extracted from Scottish waters, while the Scottish Government has estimated the reserves to have a possible wholesale value of up to £1.5 trillion.

The report said that by wholesale value, over half of the oil and gas reserves could still be extracted from the UK Continental Shelf (UKCS).

Scotland accounted for 78% of total UK hydrocarbon production in 2011-12, while the country is estimated to have the largest oil reserves in the EU, accounting for nearly 60% of total EU reserves.

Commenting on the bulletin, First Minister of Scotland Alex Salmond said that Scotland’s oil and gas industry is gaining strength with significant number of investments in the North Sea.