THE OIL AND GAS INDUSTRY

The Oil and Gas Industry

The Oil and Gas Industry

Introduction

Oil and Gas industry is one of the main industries in the world. It is the case with this industry when we talk of United Kingdom. The industry is the lifeline for the other industries in the country. This industry provides chemical and energy for the economy. These are transferred to the transport household and the other industries prevailing in the country (Brooks,Weatherston and Wilkinson, 2004, pp.67-72). This industry contributes valuable income for the government and helps the country earn valuable export revenue directly or indirectly.

The primary aim of choosing this industry is consider the key environmental factor, which are currently prevailing in these industries. We are going to do a pest analysis of this industry that is the Political, Environmental, Social and Technological factors. This report will also look in the various rationale of the industry together with the companies to be chosen for the project. In this report, we will be calculating a number of financial ratios, which will help us in understanding the company's financial position. This will help us in understanding the position where the company stands and can improve on the future. This will also help us in understanding the competitor position in the company.

The importance of this industry can be understood from the following figure. It contributes three quarter of the UK primary energy to the household and the industries (Daly, 1997, pp. 67-84). More than 400,000 people are directly or indirectly related to this sector. In this sector, more than £ 250 billion people have been invested. In this sector, more than £ 150 billion have been paid as taxes. In the yearly contribution to the national exchequer, it contributes more than 4 billion to the balance of payment of the country (Gowthorpe, 2008, Pp 123-129). As per the oil careers this sector accounts for one fifth of the UK annual investment.

Rationale for the Oil Industry

The oil industry significantly contributed to the national exchequer. The rationale, which is based of this industry, is to get an understanding as to how the risk posed by the change in the climate affects these companies. As per a report, the researchers explored an increasing pressure in this industry due to the rising change in temperature.

Company's reputation damage

As per the awareness and understanding of the damages which are posed by the recent change in climate change due to the oil spills. This can be seen by the oil spill from the BP well in Untied States (Gulf of Mexico). This has destroyed life especially in the surrounding areas of the oil spill. These incidents are a great source for destroying the image of the company, and it takes several years for the company to recover from these disasters.

Increased pressure on Water resources

There has been a growing concern regarding the changing patterns of rain. This has led to sever water shortage in many areas of the world (Morris and Wiley, 2011, ...