Strategic Management of Uk Oil and Gas Industry

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STRATEGIC MANAGEMENT OF ANALYSIS OF UK OIL AND GAS SECTOR 1.0 INTRODUCTION 1.1 UK OIL SECTOR OVERVIEW The oil and gas industry is a large Industry and contributes a critical role in driving the global economy (Sam’s et. al., 2006).The upstream section of the Industry is involved with the first stage of exploration and production, the midstream section involves the transportation of crude through pipelines, ships e.t.c to the refineries. The downstream is involved with refining and process of the oil and gas products. The distribution and marketing of crude is then done for end user consumption. For purpose of this report the analysis shall be on oil and gas operations with emphasis in the United Kingdom. According to (Oil and gas UK,…show more content…
Figure 3 shows a projection in the volume of oil and gas that would be produced between 2008 and 2015, provided there is sustainable investments made. Figure 1: Oil and gas Production. Source: Oil and Gas UK Activity. 2.4 Imports/exports and import dependency: The oil industry in the UK has being highly dependent on importation of crude oil since 2005 according to (EIA, 2010) reports. The industry produces refined products that are in excess of the consumers demand and making it a net exporter when it comes to refined oil, this however lead the country to account for about 12% of the net importation from crude oil in 2009. With the huge capacity of refining capability the Industry could be to a large degree a net importer, in coming years the increase in want of aviation fuel and diesel fuel could lead to an increase in the refinery output and with the continuous decline of crude production in the country, Uk is faced with coming up with decisions and strategies of ways of solving the increasing demands of the above products and deciding on how much it would need to alter its refinery capability to deliver the products and the degree of import dependency it would need. Figure shows the exports and imports of crude by region with Western Europe having the highest values.
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