UK Oil & Gas Industry: Changes and Impact

UK Oil & Gas industry

ABSTRACT
This report is summarised about UK Oil & Gas industry and the changes in this sector
throughout the last ten years. In Oil & Gas Industry of UK shows that price of Crude Oil changes
over the last ten years which increase the overall price and that further impact on individual
pockets. There are several factors as well which affect the demand of Crude Oil and government
also take necessary actions which affect UK market through 2010 to 2020. In addition, COVID-
19 affects the current as well as future price of Crude Oil of UK market.

Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Average Crude Oil prices in the UK changed from the period of 2010 to 2020.....................1
2. Economic determinants of the changes in UK crude oil.........................................................3
3. Government action over the period from 2010- 2020 affected the UK market.......................7
4. Analyse the immediate and future effect of COVID 19 on the price of crude oil...................8
RECOMMENDATIONS.................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
UK’s oil and gas industry help the economy though generating revenue from its activities.
Ninety-eight per cent of supply comes from offshore areas and the Aberdeen services sector has
been a pioneer in improving offshore hydrocarbon extraction technologies (Aalsalem and et.al.,
2018). Historically, many gas originated from East Anglia from Morecambe Bay and the
Southern North Sea, but both regions are now diminishing. This report is based on the Crude oil
prices of UK which changed over the period of 2010 to 2020. It covers several topics such as
average prices throughout the period, determinates such as demand & supply which affect the
overall price from the period 2010 to 2020. In addition, there are several government actions
which taken by them to improve the situations and the impact of COVID 19 on crude oil prices
over the period from 2010 to 2020.
MAIN BODY
1. Average Crude Oil prices in the UK changed from the period of 2010 to 2020
In 2014, the UK's oil and gas industry generated 1.42 million BOE every day, 59 per cent
of which would be oil / liquids. In 2013, the United Kingdom imported 1,508 million barrels of
crude oil per day and 2,735 trillion cubic feet (tcf) of coal, and hydrocarbon importers have been
a net exporter throughout the 1980s and 1990s.
UK taxes from oil and gas comprise of offshore corporation tax (that also includes
corporate ring fencing tax and extra charge) and petroleum income tax. Such taxes extend to the
earnings of companies engaged in oil and gas production in the UK and on the Ukcs ("The North
Sea"). In our current estimate, it is expected that sales from UK oil and gas to generate £ 1.1
billion in 2019-20, which constitutes 0.13 per cent of all revenues.
UK oil and gas sales have a highly volatile monthly pattern during the year. Both the corp
tax 'ring-fence' and the additional charge are deductible in three instalments each year, in relation
to the begin and finish of the accounting period of each institutional investor (Al-Hemoud and
et.al., 2019). The PRT rate has already been fixed at zero, and no PRT instalments are made,
while decommissioning-related PRT repayments are still carried out over the year, decreasing
net receipts.
1