Oil and Gas Contract Law



Oil and Gas Contract Law

Introduction

In the context of the contemporary global environment, the oil and gas sector is generally considered as one of the most significant industrial sectors in any national economy. The reason for the significance of this sector can be attributed to the impact of the oil and gas sector on other complimentary industries, which holistically impact the national GDP. The energy sector is ideally defined as a crucial economic driver, and it fulfills the energy demands of the rest of the national organizational sector. In the current global environment the industrial sector has become highly pressurized by the growing global demands and consumerism, hence in this scenario the energy demand of the general global industrial sector is increased drastically. Even with the adequate investments in the global platform in the alternative non carbon based energy sources, the conventional industrial sectors such as the oil and gas industries still have to compensate for the majority of the national industrial; energy demand.

The UK Oil & Gas Sector: Role of the Regulatory Authorities

In majority of the developed nations in the world such as the UK, the oil and gas sector are considered as the economic growth catalysts. In the current global environment these traditional carbon based energy source industries have experienced a significant amount of negative reaction from the environmental and other ecosystem related groups. However in regions such as the UK, the oil and gas industry still plays a vital role in the development of the energy resources for the massive demand from the national economy, and the alternative fuel sector does not have the adequate infrastructure or the technology to present a feasible solution. Due to the significance and the impact of the oil and gas sector on the national economy and the industrial growth of UK, the administrative authorities have developed a strong and comprehensive legal framework so as to ensure that the interests of the relevant stakeholders in the industry are satisfied. The most significant component to consider about the UK oil and gas sector is to realize the involvement of several numbers of significant stakeholders in the industry.

The relevant UK law regulatory authorities have to ensure that the adequate legal provisions cater to the interests of this stakeholder, but also allow the industry to function in a relatively efficient manner. It is true that the law regulating authorities have to play an essential and proactive role in the operational activities and the policies relevant t the oil and gas sector, as they allow a fair and efficient industrial platform. Without the role of the adequate and empowered law regulating authorities the significant industries such as the oil and gas industry would face several operational dilemmas. Due to the involvement of several stakeholders in this industrial sector an efficient regulatory authority is required, so that the industry develops the capability to meet its energy demand targets. However it is also true that too bush regulations and bureaucracy can make the ...