SCOTLAND'S future oil revenues could go into two funds - one to stabilise fluctuations in revenue and the other to save for the nation's future, according to a paper to be published today.

Scotland's oil fund would stand at around £100 billion had it been set up in the 1980s, Finance Secretary John Swinney has claimed ahead of the publication of the report today on the future possibilities of such a fund.

He is expected to reveal that the Scottish Government is looking at establishing two funds - a stabilisation fund to iron out annual fluctuations in oil and gas revenues - and a longer-term savings pot akin to that which has allowed Norway to develop the biggest sovereign wealth fund in the world.

Today's report will outline how both a stabilisation and savings fund can be established in an independent Scotland, making clear that such funds can be set up and invested in even when public finances are in deficit, provided income accruing from investments in the funds outweighs the cost of government borrowing.

Mr Swinney said: "If these resources had been invested into a savings fund then the country could now have accumulated financial assets of between £82bn and £116bn, as opposed to a share of the UK's huge debt."