Development in Oil and Gas Industries: Summer 2017 Analysis

This report provides an overview of the oil and gas industry, particularly focusing on the UK sector. It delves into the factors influencing the size and structure of the current oil industry and their impact on oil prices. The report also explores the potential of technological changes, such as district heating, combined heat and power, electric vehicles, and plug-in hybrid vehicles, on the energy retailing industry over the next decade. Key business drivers, including consumer needs, fuel suppliers, competition, and government policies, are examined. The analysis covers political, economic, social, and technological factors affecting the industry. The report concludes by highlighting the advancements in technology and their influence on the global oil and gas sector, emphasizing the importance of innovation and its impact on the future of the industry.

Development in Oil and Gas
Industries Summer 2017

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Factors affecting present size and structure of current oil industry and its impact on rising
price of oil...................................................................................................................................1
LO2..................................................................................................................................................3
2. Potential of technological change on energy retailing industry in next decade......................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

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INTRODUCTION
In the current time period, industries are regularly growing in effective manner, it refers
to production of goods and products within an particular country's economy. This is one of the
major sources of company to earn profit or revenue in appropriate manner. This assignment will
be discussing about oil and gas industry, in UK 1.42 million procured Boepd, which is
combination of energy that is released by burning one barrel of crude oil (Adgate, 2014). This
industry important of economy of country as well as contributing some 0.8% of GDP in second
quarter of 2015. in this research project will be explaining about different barriers and major
scope of the UK. Also there will be defining heating system and electric vehicles and plug in
hybrid vehicles.
TASK 1
1. Factors affecting present size and structure of current oil industry and its impact on rising
price of oil
In the context of oil and gas industry, these are working and running for producing
products and goods for customers. In the oil and gas sector, these are providing oil and gas for
persons with the help of them they effectively complete their works and operate their machinery.
For systematically completing the works and task as well as achieving sustainable objectives, so
employers are using smart and innovative techniques in entire industry. At the current time
period, most of the companies wants to use smart technologies and methods in entire
organisation with the help of them they effective attain their long and short term goals. While
using emerging technologies so have to be face several barriers and problems. These have to be
resolve with better and effective solution (Goldstein, and McKenzie, 2014). During the 2017, oil
and gas industry remaining downwards pressure. Upstream use to cover the demand and supply
of the scenarios for oil and gas in short term outlook. Midstream use to cover the investment and
the opportunities. Downstream mainly covers the industry of refining, it present and even future
state.
Key business drivers in oil and gas

There are various drivers which affects the petroleum market, it is mainly grouped in four
categories. The four group which is supplier, consumer, competitors and government.
Consumer needs as a business driver- It is apparent by the consumers behaviour that
their may be two factors which could be convenience and price. It is the truth that demand of
customer will mainly depend on the price of fuel, if the prices will rise demand will get decrease
and if the price will get low then the demand of people increase. There are antithetical factors by
which consumer can affect, some can affect with convenience and other can affect with price.
 Fuel suppliers- It is essential for a fuel company to have a good relation with the
suppliers. There are different channels which are available with the company so that they
can purchase fuel directly or indirectly.
 Competition level- this factor can affect the fuel company as if they would not have
appropriate tools with them then that would affect the company in many ways. So it can
also affect at competitive level.
 Government policies- This factor is most essential driver of the fuel company is the
rules and regulation which have the most important impact on the behaviour of the
customers. The rules and regulation which government use to make for the company has
to properly followed by organisation as well the investors and customer others. At some
points it can even affect the all.
The fuel industry mainly depends on their everlasting improvement technology. Even the
international industry also is not in place to adopt the new and upgraded technologies. While the
company will adopt any kind of new technology then the price of fuel may also affect. But in this
modern and technological word, it is essential to have good and upgraded technologies all over
this not only increase the profit of industry even that may also increase the chance of
sustainability in the market for a long time period. All that fuel industry which had adopted the
new technologies in their organisation had experienced that they have decreased in cost, and and
the management had also become better in their firm.
The fuel industry can affect with various factors such as political, economical, social,
technological (Kong and Ohadi, 2010). Political factors can affect the industry by many ways
like if the party which ruling in the nation have the rights to change the rules and regulation in
nation so the policies which are made by them can also affect the business at sudden and starting
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point. The laws and regulation which are made sometimes may not in the favour of the
organisation. Economical factors- this factor can affect as if any of the nation is low in economical
way then it might create problems to the industry as they would not be able to adopt any
new technologies and cant even make any kind of additions in the firm. And that may
also affect in sale as if people would not have good economical condition then they
would not be able to buy the fuels which would affect their sales. Social factor- If any kind of changes will occur in the political factor then would also
have direct impact on the social factor as if the price of fuel will increase and people do
not have that much of income sources so they would not be able to spend that much on
this. This will affect the society at some or the other way (Ovadia, 2012). So this would
also be a factor which will affect the industry directly or indirectly.
 Technological factor- In this upgraded and changing world it is very essential to have
proper and upgraded technologies with industry so that they can be able to serve their
customers in appropriate and new ways. If the modern techniques is not used at the time
then it way affect their day to day operations and it might affect their sales, which will
decrease in their revenue (Entrekin, and et. al., 2011).
All these things has to managed and maintained properly so that all the barriers and
issues which are occurred in the fuel industry.
LO2
2. Potential of technological change on energy retailing industry in next decade
Another name of oil and gas industry is petroleum which consist of process of refining,
transporting, importing and exporting of petroleum products. Basically it is an useful raw
material for many more chemical goods which includes pharmaceuticals, pesticides as well as
plastics (Llewellyn, and et. al., 2015). In fact this industry is mainly classified into three main
components that is upstream, midstream and downstream. Simply petroleum is a liquid form
found in a rock formations and it is a substance of a hydrocarbons of different molecular weights
as well as other organic compounds. Thus it is mainly utilised by human beings from
approximately 5000 years because it act as a indispensable item for whole society due to its
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service. Additionally it is very important for whole world because it plays a very eminent role in
uplifting or developing world economy by providing basic facilities to every individuals.
Apart from this, there are number of changes and reformation are taking place at
international level due to introduction of many more ideas and creativity which may enhance
whole industry (Olmstead, and et. al., 2013). In fact retail industry is mainly expanded across
national borders due to its roles and responsibility towards enhancement of whole sector.
Emergence of various technology have a greater influence on overall industry which is
mentioned below:-
 District heating:- This is a technique of transferring heat with the help of network of
insulated pipes in the form of hot water or steam. According to this methods which is
introduced by talented scientist they can easily transfer heat from one place to another
with the use of effective pipelines. Basically heat can be transferred by adopting various
types of sources which is stated as follows :-
1. Establishment of power stations at different places for transferring energy.
2. Acquiring energy or heat from different wastages facilities which means increase in
renewable substances.
3. Effective industrial processes.
4. Usage of biomass and biogas fuelled boilers for heating water as well as various
CHP plants.
5. Emergence of heat pumps
6. Usage of geothermal sources.
7. Emergence of electric boilers as well as solar thermal boilers. Combined heat and power:- It is a combination of heat and power in a single process for
transferring both the factors in one way with the help of effective methods. Basically
combined heat and power is very much useful because it emerges with the use of wastage
and trying to create heat to provide in various areas. It also act as a fuel neutral and it tries
to create more valuable primary energy resources (Newell, and Raimi, 2014). Electric vehicles:- It also known as a electric drive vehicle which is mainly run or works
with the use of electricity from off vehicles sources or either may be self stored battery
and act as a converter of fuel into electricity. Basically electric vehicle is came into
existence in approximately in mid of 19th century when vehicles use electric is very much
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popularise due to its impressive features and comfort zone provided to millions of
consumers. Apart from this it increases day by day due to its increase in usage and sales
at a marketplace and increased attention on renewable energy.
 Plug in hybrid vehicles:- According to this technology vehicles uses rechargeable
batteries as well as other device for storing energy in it. Vehicles uses battery produce
less air pollution as compare to electric vehicles due to its features and capability. In fact
it is very useful in protecting surrounding from exploitation and greenhouse gases which
influence whole environment (McGowan, 2014). In additional now-a-days most of the
companies are selling across national borders due to its quality.
Apart from this, it has been understood that oil and gas industry is expanding across
national borders due to its features and extra usage at international level. In fact there are number
of techniques are emerges which is used by whole world to live their livelihood more
comfortably . Main reason behind emerging various substitutes of vehicles to develop and uplift
world economy by introducing number of technologies. Instead of all this, scientist of UK trying
to launch innovative products by utilising available resources or wastage.
CONCLUSION
From the above report it has been understood that due to technology advancement there is
a greater development in oil and gas industries which influence overall world because this sector
is mainly expanded across national boundaries. Basically this report is all about appropriate
structure of a current petroleum industry which have a greater impact on price of oil because
both are interlinked with each other. In additional it also highlight impact of technological
change on energy retailing sectors in coming years due to its broad concept with full of
complexity. At last, this assignment shows changes in a petroleum sectors due to reformation in
internal and external factors of environment.
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REFERENCES
Books and Journals
Adgate, J. L., Goldstein, B. D. and McKenzie, L. M., 2014. Potential public health hazards,
exposures and health effects from unconventional natural gas
development. Environmental science & technology. 48(15). pp.8307-8320.
Brittingham, M. C. and et. al., 2014. Ecological risks of shale oil and gas development to
wildlife, aquatic resources and their habitats. Environmental Science & Technology.
48(19). pp.11034-11047.
Entrekin, S. and et. al., 2011. Rapid expansion of natural gas development poses a threat to
surface waters. Frontiers in Ecology and the Environment. 9(9). pp.503-511.
Llewellyn, G. T. and et. al., 2015. Evaluating a groundwater supply contamination incident
attributed to Marcellus Shale gas development. Proceedings of the National Academy of
Sciences. 112(20). pp.6325-6330.
McGowan, F., 2014. Regulating innovation: European responses to shale gas
development. Environmental politics. 23(1). pp.41-58.
Newell, R. G. and Raimi, D., 2014. Implications of shale gas development for climate
change. Environmental science & technology. 48(15). pp.8360-8368.
Olmstead, S.M. and et. al., 2013. Shale gas development impacts on surface water quality in
Pennsylvania. Proceedings of the National Academy of Sciences. 110(13). pp.4962-
4967.
Presley, J. R. and Westaway, T., 2017. A guide to the Saudi Arabian economy. Springer.
Theodori, G. L., 2012. Public perception of the natural gas industry: Data from the Barnett
Shale. Energy Sources, Part B: Economics, Planning, and Policy. 7(3). pp.275-281.
Perry, S. L., 2012. Development, land use, and collective trauma: the Marcellus Shale gas boom
in rural Pennsylvania. Culture, Agriculture, Food and Environment. 34(1). pp.81-92.
Online
What is Combined Heat and Power. 2017. [Online]. Available through
<https://www.theade.co.uk/resources/what-is-combined-heat-and-power>. [Accessed on
28th July 2017]
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