Impact of Government Actions on the UK Market

Contemporary Business
Environment

Table of Contents
INTRODUCTION................................................................................................................................3
1. How have average Crude prices in UK changed over the period from 2010 to 2020? ..............3
2. What are the economic determinants of the changes outlined in your answer to Question 1? ...5
3. How has government action over the period 2010-2020 affected the UK market?.....................7
4. Analyse and predict the immediate and future effects of COVID-19 on the prices of Crude
Oil? ..................................................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES ..................................................................................................................................10

INTRODUCTION
Business environment has direct impact on the operations of the company which has to be
keenly analysed and managed. For this companies and the management has to analyse both the
internal environment as well as external environment so they can identify the prevailing opportunity
for the business along with various threats that has adverse impact on the operations of the
company. The factors which has direct impact on the business includes uncertainty in the future,
strategies of the management, various regulations and compliances, rapidly changing technology
and many more. Due to such factors the organisation need to emphasise on the changes taking place
on the basis of which they formulate various policies and strategies that can help them in
accomplishing their objectivities by managing their impact (Al-Khazali and Mirzaei, 2017). This
report is based on the oil and gas industry of UK that has been affected by the policies of the
government as well as due to the economic conditions prevailing within the economy. This industry
contributes a lot to the overall economic development in UK as it account for more than three-
quarters of the primary needs of UK. In this report the changes that have taken place within the
industry are discussed in past 10 years along with various economic determinants that brings
changes within the industry. In addition to this discussion is done over various actions that are taken
by the government in last ten years which affected the market of UK along with various impacts of
COVID pandemic on the prices of the crude oil.
1. How have average Crude prices in UK changed over the period from 2010 to 2020?
With each year passing on the role of oil has been increasing within the global economy
because of development taken place in the industries which has increased its demand. The oil
market consists of various speculators who bet on the prices that make them move up and down
affecting the production or consumption of oil. It has been analysed that gradually with the
economic development the demand for crude oil has increased in UK due to which its price has
increased over the period. But due to various changes that took place within the UK economy the
movement of prices of crude was consistent considering the average annual price of Brent crude in
July 2020 is 40.37 US dollar per barrel. In the year 2019 the prices of Brent crude oil on an average
was totalled at 64.36 US dollar per barrel which came down from 99 US dollar per barrel from the
year 2014 (Apergis and Apergis, 2020). But when prices of 2019 are compared with 2001 it still
reflects a significant increase in the prices. Brent crude is considered as light crude oil which is used
as benchmark price for oil throughout the world. It is considered light sweet oil as it originates in
North Sea and it contain low sulphur as well as a low density. The prices of crude oil is crucially
monitored and observed by the economists as well as the businesses because it has impact on