North Sea oil, the UK economy and macroeconomic adjustment -an overview, theoretical and simulation analysis

The discovery and production of oil from the UK sector of the North Sea has had, and will continue to have for some time yet, an important impact upon developments in that economy. This paper is concerned with identifying the major characteristics of this oil production, and the macroeconomic developments which have arisen in the UK during its period of production. A theoretical framework, incorporating these characteristics, is developed, to identify the contribution of oil production and price changes to these as well as future developments. (author)