Development in Oil and Gas Retail Industries
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Added on 2019-12-03
Development in Oil and Gas Retail Industries
Added on 2019-12-03
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Development in Oil and GasRetail Industries
TABLE OF CONTENTS1.0 INTRODUCTION.....................................................................................................................42.0 RECENT TRENDS AND CHANGES WITHIN SUPPLY CHAIN OF UK PETROLEUMRETAIL MARKET.........................................................................................................................43.0 CHANGES IN THE OWNERSHIP OF PETROL SUPPLIERS..............................................54.0 CHANGES IN BUYER BEHAVIOUR ................................................................................105.0 IMPACT OF TECHNOLOGY ...............................................................................................116.0 CONCLUSION .......................................................................................................................12REFERENCES..............................................................................................................................13
ILLUSTRATION INDEXIllustration 1: Declining of PFS in past decades..............................................................................6Illustration 2: Asda PFS...................................................................................................................7Illustration 3: Rising of petrol prices of different companies..........................................................8Illustration 4: Total number of PFS and total fuel volumes.............................................................9
1.0 INTRODUCTIONIn the current era of globalization, the future of oil and gas industry has changed overtime. However, since 2005, the prices if oil have moved to a permanently high level. There aredifferent recent changes and trends within the UK supply chain downstream market whichresults into closing down of petrol filling stations. Also, the ownership of major oil fillingstations i.e. British Petroleum (BP) and Shell and now supermarkets such as Tesco, Sainsburyand Asda are opening their petrol filling stations in the country (Byrne, 2014). Further,introduction of new technologies in market are providing diverse but uncertain opportunities forproducing unconventional oil and gas in many parts of the world. 2.0 RECENT TRENDS AND CHANGES WITHIN SUPPLY CHAIN OF UKPETROLEUM RETAIL MARKETIt can be assessed that the petroleum retail market has undergone a number of significantchanges over the last few years. Following are the key changes and trends within the supply ofUL petroleum retail market- Main recent change which has been noticed is that number of petrolfilling stations (PFS) has been closed that is around 37,500 in 1970 to less than 9,000 in 2011. Itstates that more than 75% of the petrol stations have been closed. Between the year 2001 and2011 the number of petrol filling stations has declined from 12,258 to 8,677. It results to a 29%decrease. Hence, it can be stated that it is one of the significant trends and changes in thepetroleum retail market (Perdiguero-García, 2013). It can be assessed that there has been highchanges in the supply of oil reserves from 1970 to 2015. It is all because of rise in prices of oil inthe market and various alternative solutions are present that are preferable in regard to use oil. Further, it has been assessed that the main closures of petrol filling stations primarilyconsists of independent dealer owned and company owned PFS such as Shell while supermarketowned PFS are continuing to grow. It involves Tesco, Asda who sells fuel under its own brandname (Rhodes, 2014). Main reason behind the growth of supermarket owned PFS is becausesuch companies are even growing their business in retail grocery sector. Therefore, suchbusinesses possess higher volumes and have more fuelling positions in relation to dealer ownedand company owned PFS. Hence, it results in reducing the number of PFS of Shell and BP andincrease the market share in terms of fuel volume of supermarket owned PFS. In the years 2011,supermarkets such as Asda, Tesco owns a market share of around 39% in total fuel volumes sold
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