Strategic and Decision Making in Oil and Gas Industry

Running head: STRATEGIC AND DECISION MAKING IN OIL AND GAS INDUSTRY
Strategic and decision making in oil and gas industry
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2STRATEGIC AND DECISION MAKING IN OIL AND GAS INDUSTRY
Table of Contents
1. Introduction............................................................................................................................3
2. Current market Conditions and Market Entry Opportunities.................................................3
3. SWOT analysis.......................................................................................................................5
3.1 Strengths...........................................................................................................................5
3.2 Weaknesses.......................................................................................................................6
3.3 Opportunities....................................................................................................................6
3.4 Threats..............................................................................................................................7
4. Recommendations..................................................................................................................7
5. Conclusion..............................................................................................................................8
Reference List............................................................................................................................9

3STRATEGIC AND DECISION MAKING IN OIL AND GAS INDUSTRY
1. Introduction
After a rapid demise in the period from 2014 to 2017, the Oil and Gas Industry of
Scotland is recovering and likely to experience a stable business growth phase for the few
upcoming decades. In the economic recovery of the Oil and Gas industry of Scotland, the
Decommissioning activities in the North Sea are going to be instrumental. According to
Smyth et al. (2015), the new energy policy of the Government of Scotland is aimed at
investing in innovation and sustainable decommissioning activities in the North Sea.
Research reports confirm that North Sea have proven to be the most poignant area of
investment for Scotland and UKCS, and most of their investments have went into the ‘well
plugging and abandonment’ phase”. The report leans on making a detailed analysis of the
business prospects of the different phases of the decommissioning activities of DECOM,
North Sea Company. Well in sync with plugging and abandonment, activities like onshore
dismantling as well as disposal have been source of huge profits in recent time for DECOM
and other Scottish organisations.
2. Current market Conditions and Market Entry Opportunities
After the prices dropped miserably in 2014, the incumbent owners of the organisation
shifted to the decommissioning activities of the UK North Sea and attempted. According to
the statistics provided by the Oil and Gas authorities of the UK and Scottish government, ot is
evident that about 700 million barrels of oil is supposed to be collected from the sanctioned
oil mining endeavours in the North Sea, in the year 2017, itself. Besides, Aguilar et al.
(2016), also opines that with the UK and Scottish government, who are ultimately responsible
for decommissioning activities destined to be carried out in the UKCS, more potential Oil
and Gas companied are going invest in building infrastructure for the decommissioning
activities. However, on the contrary, Ahiaga-Dagbui et al. (2017), opines that the companies