Contemporary Business Environment: Impact of Crude Oil Prices and Government Actions

Contemporary
Business Environment

ABSTRACT
Crude oil is one of the most important factor that is required for managing business
within business industry and sector. Almost all industry perform their task with the help of crude
oil that also helps for making and analysing organisational aspects. There are different
circumstances also exists in market environment which is impacting on prices of oil. Demand
and supply, tax etc. are some example that impacts on business of gas and oil industry. Due to
Covid-19 pandemic conditions in environment of business are also raised and it is impacting on
price of oil. Further, with the recommendation to government initiative related with business
environment are also included in this industry for ensuring the environment of country in future.

Contents
ABSTRACT ...................................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
MAIN BODY..................................................................................................................................................4
1.How have average Crude Oil prices in the UK changed over the period from 20010 - 2020?..............4
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?........9
Recommendation to the government...................................................................................................10
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................12

INTRODUCTION
Contemporary Business Environment is defined as the market where competition is at
higher level and even changes in the market can be seen at a very fast speed. In this type of
market, there are different types of factors which must be consider because that certainly has a
huge impact on day to day activity. In context of the file, UK Oil and Gas industry will be
considered and that changes which has been seen within this particular sector since last 10 years
will be majorly focused (Shukla and Karki, 2016). On the basis of oil and gas industry, its prices,
economic determinants will be overviewed. Along with it, different actions which will be taken
by government in past few years and even future effect of COVID-19 on crude oil will be
analysed.
MAIN BODY
1.How have average Crude Oil prices in the UK changed over the period from 20010 - 2020?
Crude Oil can be defined as the natural occurring and unrefined petroleum product which
is formed with the help of hydrocarbon deposits along with number of other organic materials.
Further crude oil can be refined for the purpose of using oil as gasoline, diesel as well as number
of other petroleum products. The demand for crude oil is huge in the market and in present it is
almost impossible to depend upon other factor as a alternate of crude oil. Each of the nation is
directly dependent upon crude oil for its economic growth. It is because whenever price in crude
oil increases then inflation rate increases which certainly slowdown the economic growth of the
company (Rui and et. al., 2018).
The history of last ten years shows that there is a rapid speed flow of the price in crude
oil. The price has been never stable in crude oil and the major benefit is obtain by the country
where crude oils are found. Even there are different types of taxes which are included at the of
bringing the crude oil within the nation. It is one of the main reasons that price is changing on a
regular basis. As demand of crude oil is increasing at a rapid speed which means that price is
also increasing. For example: the prices of crude oil have declined significantly because of the
requirement of oil in the global pandemic COVID-19.