Impact of BREXIT on UK Oil and Natural Gas Companies

Running head: RESEARCH METHODS
Research methods
Name of the students
Name of the university
Author notes

1RESEARCH METHODS
Executive Summary
The study had identified the impact of BREXIT on the United Kingdom oil and natural gas
companies. Globalization had changed the market scenario especially for companies in the
United Kingdom. The free trade has enabled the companies from the developing countries to
grab a hold to the market. This has intensified the competition in the global and domestic market
in the United Kingdom. The findings of the study showed that oil and natural gas companies will
had to pay higher amount of taxes to import and export products and resources. There had been
an imbalance in the industry in meeting the demand and the supply. Even though BREXIT would
have negative impacts on the industry, there will be some changes which would have to
capitalized.

2RESEARCH METHODS
Table of Contents
Introduction......................................................................................................................................3
Rationale..........................................................................................................................................3
Research question............................................................................................................................4
Literature Review............................................................................................................................5
Research Methodology....................................................................................................................8
Findings and Discussion................................................................................................................10
Conclusion and recommendation..................................................................................................12

3RESEARCH METHODS
Topic: An evaluation of the effect of BREXIT on the U.K refining industry
Introduction
The study will identify the impact of BREXIT on the United Kingdom oil and natural gas
companies. Globalization has changed the market scenario especially for companies in the
United Kingdom. The free trade has enabled the companies from the developing countries to
grab a hold to the market. This has intensified the competition in the global and domestic market
in the United Kingdom. This has caused United Kingdom to leave the European Union and if the
country leaves the European Union it will deeply affect the refinery industry in the United
Kingdom (Issa 2016).
Rationale
BREXIT would lead to the increase in exporting cost for the companies in the United
Kingdom refinery industry. The oil companies will have to pay half a billion pounds more for
trading with the countries in the European Union. The World Trade Organization rules suggest
that the trading cost of oil worth £73bn for the refinery companies will rise from £600m to
£1.1bn (Vaughan 2017). However, this impact can be reduced by striking deals with companies
outside the European Union. This is because of the fact the refineries will have to pay 3% tariff
on exported petroleum products. This has led to selling of assets on the North Sea to independent
smaller players in the market. Therefore, this shows that the future of the Oil and natural gas
companies in the United Kingdom is uncertain and the study will analyze the current situation to
identify the possible impacts on the companies. On the other hand, the energy requirements in
the world will increase significantly in the next few years where United Kingdom being one of
the major players in the market (Nortonrosefulbright.com 2016). However, many experts feel