Simmer the butterscotch beer in a large pot over medium heat until it reduces to ½ cup (120 ml), about 20-30 minutes. Let it cool slightly.
Preheat the oven to 350°F and prepare a 9x9 inch baking pan.
In a bowl, whisk together flour, baking powder, baking soda, and salt.
Cream butter and sugars until fluffy, then add eggs, vanilla, butter extract, melted butterscotch chips, and butterscotch beer reduction.
Mix in buttermilk and dry ingredients until smooth. Pour batter into the pan and bake for 27-31 minutes.
Let the cake cool completely.