Impact of Brexit on Oil Trade and Environment Policies

This report analyzes the impact of Brexit referendum on oil trade and environmental policies of the UK. It discusses the impact of the referendum on the UK and EU oil trade followed by its impact on environmental policies.

Running head: IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Name of the Student
Name of the University
Author note

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Executive summary
The chief purpose of this report was to analyze the impact of Brexit referendum on oil trade and
environmental policies of the UK. The report was constructed systematically with an
introduction briefing the contents of the report at the beginning followed by a brief description of
the referendum. A discussion on the impact of the referendum on the oil trade in the UK and EU
and on the environmental policies of the UK further followed. the report concluded with an
overall summary of the discussion and a statement on the future possibilities of the referendum.

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Table of Contents
Task 1: Report..................................................................................................................................3
Introduction......................................................................................................................................3
The Referendum..............................................................................................................................3
Impact on Oil Trade.....................................................................................................................4
Impact on Environmental policies...............................................................................................5
Conclusion.......................................................................................................................................5
Task 2: Reflective summary............................................................................................................6
References:......................................................................................................................................8

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Task 1: Report
Introduction
The report will analyze the impact of the referendum made by the citizens of United
Kingdom on 23 June 2016 on two specific areas namely the oil trade and environmental policies.
At first, the report will provide a brief description of the referendum that influenced the world
economy and politics and not just of the European Union. Then, the report will analyze the
impact of the referendum on the UK and EU oil trade followed by its impact on environmental
policies. In doing so, it will carry out an extensive research on this issue.
The Referendum
June 23, 2016 marked the beginning of a new era in the European Union and the world as
well when Britain declared through a referendum that it will exit the EU. The majority
population accounting for almost 52%, voted in favor of leaving the EU (Bbc.com, 2018).
Termed as ‘Brexit’, which is an abbreviated form of British exit from the EU, it had an
immediate influence on the UK in particular and the EU in general. The question of whether
Britain should stay or leave the EU had been ongoing for several decades since 1975 when the
first vote was held (Bbc.com, 2018). 2016 however, the political and economic landscape
changed and the need for a referendum again was realized. David Cameron, the then Prime
Minister of Britain had to face mounting pressure from the pro-exits especially the UK
Independence Party to hold a referendum. Cameron promised a referendum ultimately in 2013 if
his party wins the 2015 election and thus the in-out referendum was held in 2016 after the
Conservatives received an absolute majority (Economictimes.indiatimes.com, 2018).

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Impact on Oil Trade
Most of the matters related to oil trade like licensing and taxation, production activities
and development are and have been controlled by the UK (Hilyard 2012). Despite that, the
referendum will have some telling effects on certain aspects of the oil trade, as many experts
believe. The reason is EU’s control over many important aspects of the oil trade.
The legal and regulatory management administered by the Petroleum Act 1998 prior to
the referendum has not significantly changed since its commencement and it is less likely to
change for some time (Nortonrosefulbright.com, 2018). The referendum would take some time
to materialize with the specific date set to be March 24, 2019 when the UK would finally exit
from the EU. Until then, the existing oil and gas legislation would remain unchanged and the law
derived from the EU would continue to be imposed on UK oil trade as well.
It is however important to note that the referendum did see a number of changes on the
economic front with government and business merging in several cases. To provide an instance,
Prime Minister Theresa May announced the formation of the new Department of Business,
Energy and Industrial Strategy. The new department was created by merging the Department for
Energy and Climate Change (DECC) and Department for Business, Innovation and Skills. The
reasons for this merger are wide ranging and hopeful to benefit both the government of UK and
the businesses. With government involvement in the energy sector and new strategies being
implemented to grow business, oil and gas trade could see a boost (Bouoiyour and Selmi 2018).
Further, the fall in the value of GBP would also prompt international investors to put their money
in the North Sea as the companies and assets of UK have become remarkably cheaper.

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
Impact on Environmental policies
Various reports have shown that the association with the EU had witnessed several
changes in the environmental policies and laws in the UK that had raised the environmental
standards in the region. Known previously as the ‘dirty man of Europe’, UK managed to change
this image by imposing stricter laws that were mostly drawn from the EU (Grant 2016).
However, many scholars are of the view that the changes in the environmental policies and laws
of the UK had and have been mostly influenced by the growing concern over environmental
issues on the global front.
Now, with Britain deciding to quit the EU, it would be interesting to see what steps the
government takes to improve and maintain its environmental policies and standards. In a recent
speech given by Michael Gove, the Secretary of State for Environment, Food and Rural Affairs,
he spoke about the impact Brexit would have on environmental policies followed by the UK.
According to Mr. Gove, the Brexit gives a chance for the UK to restore and fortify its
environmental protection (Theguardian.com, 2018). He supported his statement by providing
example of the UK Climate Change Act, which, according to him, is more than enough to protect
the environment without depending on the EU.
The exit would however bring many challenges for the policy-makers as they will have to
take into account the regulations that directly come from the EU. Many environmental policies
are also governed by international laws like the Basel Convention and thus the UK will have to
prepare policies that pertain to these requirements as well.
Conclusion

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
In the end, it has to be stated that Britain’s exit from the EU will have little impact on UK as it
would have on the EU. In case of oil trade and environmental policies, Brexit would not
significantly impact the UK in terms of economy but it might challenge them in terms of forming
new policies and laws. However, questions linger over the stability and certainty of oil trade
legalities and environmental policies because the changes would be limited with some EU
derived laws and policies being there.
Task 2: Reflective summary
I was asked to be a part of a group of five to carry out a presentation on the impact of
Brexit on various trades and policies of the UK. As a group, we decided to focus on two
important areas namely the oil trade and environmental policy. Prior to working with this group,
I had no experience of working in a group for an academic project. Therefore, it was initially
difficult for me to adjust to the group but gradually I learned. Working on the project was very
interesting and exciting as well because although I had some knowledge about Brexit, I did not
know much about its background. After the presentation, I realized that I have a lot to learn in
terms of giving oral presentation in front of a big group of people. The teacher appreciated my
first time effort and suggested that I develop a personality development plan in order to become a
fluent speaker.
After undertaking this module, I have been able to refine my researching skills where I
lacked. In addition, I also was able to develop my note-taking skills, which is a very necessary
component while working on an academic project. Researching skill is important in academic
field because without proper researching, the assignments and tasks that we work upon would
not have the strength to be presented to the teacher. During the course of this module, I was

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
assigned the task to find relevant materials for the project and then input it into the presentation. I
utilized the internet and read some articles as well in order to make the assignment compact and
original. Researching is a skill that comes from self-earning and hence I was able to refine my
self-learning skills through this module as well. Overall, it was an enriching experience for me
and beneficial too for developing my researching skills.

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IMPACT OF BREXIT ON OIL TRADE AND ENVIRONMENT POLICIES
References:
Bbc.com (2018). Brexit: All you need to know. [online] BBC News. Available at:
https://www.bbc.com/news/uk-politics-32810887 [Accessed 16 Jul. 2018].
Bouoiyour, J. and Selmi, R., 2018. Are UK industries resilient in dealing with uncertainty? The
case of Brexit. The European Journal of Comparative Economics.
Economictimes.indiatimes.com (2018). Definition of Brexit | What is Brexit ? Brexit Meaning -
The Economic Times. [online] The Economic Times. Available at:
https://economictimes.indiatimes.com/definition/Brexit [Accessed 16 Jul. 2018].
Grant, W., 2016. The challenges facing UK farmers from Brexit. EuroChoices, 15(2), pp.11-16.
Hilyard, J., 2012. The oil & gas industry: A nontechnical guide. PennWell Books.
Nortonrosefulbright.com (2018). [online] Nortonrosefulbright.com. Available at:
http://www.nortonrosefulbright.com/files/impact-of-a-brexit-on-the-energy-industry-137260.pdf
[Accessed 16 Jul. 2018].
Theguardian.com (2018). Brexit could wreck green agenda, says UN. [online] the Guardian.
Available at: https://www.theguardian.com/environment/2018/may/19/un-warns-britain-over-
green-brexit [Accessed 16 Jul. 2018].