Presentation on Key Changes & Structure of the UK Petroleum Sector

This presentation provides an overview of the UK petroleum retail market, detailing its structure, including ownership by hypermarkets, companies, and dealers. It highlights the strengths, weaknesses, opportunities, and threats facing the UK oil and gas industry, covering aspects like safety, cost base, technology, and workforce demographics. Key changes in the market, such as the decline in the number of petrol filling stations (PFS) due to supermarket interference and fragmentation in the fuel supply chain, are discussed. The presentation also references various sources, including government reports and academic articles, to support its analysis of the industry's current position and future challenges. Desklib provides access to similar presentations and solved assignments for students.

TASK 1
PRESENTATION

Structure of the Petroleum sector
Total number of PFS in UK

Ownership structures
 Hypermarkets – PFS (Petrol filling stations)owned by a
hypermarket and retailing their own brand fuel such as Tesco.
 Companies – PFS owned or leased by an oil companies whose
name appears on the brand sign such BP owning and operating a
PFS under its own brand
 Dealers – PFS owned and operated by an individual or group

Number of PFS and the ownership

Current position of the UK oil and gas industry

STRENGTHS
 Safety
 Training & education
 Financial, legal and insurance services
 High pressure, high temperature field developments
 Deep water developments
 Late life operation of the mature fields
 Integrated services for the oil & gas projects & upholding of fields

WEAKNESS
 High Cost base
 Industry collaboration
 Technology execution
 Aberdeen city

OPPORTUNITIES
 High interest in licensing rounds
 New investments
 Technology
 Future sectors
 Existing fields

THREATS
 Reducing production
 Low rate of exploration
 Declining success rate
 Assessment of finance
 Older workforce demographics

Key changes in the UK petroleum
retail market
 Due to supermarket interference and rundown in company
owned and independent outlets, the total number of petrol sites
has slumped to 8700 in 2011 from 37500 in 1970
 Another issue identified is the fragmentation in the fuel supply
chain. The major oil companies such as Shell, BP, Esso, Total and
many others can either sell or close out their retail outlets and
decrease the refinery capacity
 High volume supermarket sites are buying most of the fuel from
the importers but constraining with the limited storage
 Entry of the supermarkets in the industry is another reason for
the closures and cutbacks in the storage capacities

References
 Arruda, M. G., 2014. Global governance, health systems and oil & gas exploration.
International Journal of Law and Management. 56 (6)
 Chalmers, D., Davies, G. and Monti, G., 2010. European Union Law: Cases and
Materials. Cambridge University Pres
 Oil and gas industry UK, 2014 [pdf].Available
Through<http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Energy-
sources/traditional-fuels/oilandgas>>.[ Accessed on 21st December 2015]
 Oil and Gas Sector, 2013.[Online]. Available through: <
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/
225239/oil-and-gas.pdf>. [Accessed on 21st December 2015].
 Sarwar, M., 2007. Effects of tax increases on the oil industry: first report of session
2007-08, report, together with formal minutes, oral and written evidence. The
Stationery Office.
 Terra, L. A., 2010. European information users: Topics from a comparative analysis
within the European Union. New Library World.111(5/6). pp.189 – 202.