George Osborne claims the Scottish Government is "all over the place" with proposals for such a fund if independence was achieved
Chancellor George Osborne has warned Scotland would have to make large cuts to public services if it wanted to create an oil fund after independence.
The Conservative MP, who is visiting Aberdeen to address the oil and gas industry, said it would take £8 billion out of the budget to divert revenue into a fund.
He believes Scotland can "go it alone", but as part of the UK it has a broader base to "absorb" revenue fluctuations and dismissed the idea Scotland could set up an oil fund, like Norway, without making severe public spending cuts.
He told BBC Radio Scotland's Good Morning Scotland programme: "By our calculation you'd have to make some very substantial cuts - £8 billion of cuts - to Scottish public spending.
"Even if you were getting all the money from Scottish oil, you'd have to make big, big cuts - 5% of the GDP - to your education budget, to your health budget, before you could even start putting money into an oil fund."
The Scottish Government is "all over the place" with proposals for such a fund, he claimed.
"The industry has a bright future if we invest in it, if we work with the industry to make sure we've got skilled kids coming out of our schools, the right graduates and people from our technical colleges, if we've got the right tax regime," he said.
Defending criticism of the UK Government's tax increase on the industry in 2011, he said tax relief has helped offshore exploration.
"The oil industry representatives that I've been talking to in Aberdeen, they're very encouraged about the future and about the tax environment," he said.
"They made the point that the UK Government is working closely with them to try and maximise the amount of oil and gas which is to the benefit of all the people in Scotland and all the people in the UK."
His remarks come as the Treasury's analysis paper on Scotland's macroeconomic and fiscal performance is released, showing two "fundamental fiscal consequences" if Scotland became an independent country.
Firstly, Scotland would need to rely on a narrower and more volatile tax base to fund spending on public services.
Secondly, independence would result in the break-up of the UK tax system. A separate tax system would need to be implemented in Scotland with potential implications for business, individuals and both Governments.
Mr Osborne will also unveil the final decommissioning deed - a contract which gives oil and gas companies certainty over the level of tax relief they will receive for decommissioning.