Can The UK Expect To Maintain Strong Environmental Regulation Within The Oil Industry, If And When Crude Oil Prices Persist At The Low Levels Of Revenue Experienced In 2015? (2016)
Crude Oil Prices Regulation Dissertation – The price of oil has maintained at a low level for more than 12 months since June 2014 and continues to decline. The low oil price has impacted variously on the United Kingdom especially on the national economy and its inflation rate which has declined to a record -0.10 percent. Oil companies have been impacted most as they are struggling to maintain high profit margins at a time when low oil prices have resulted in the lower revenues and costs of production are high.
Strategies such as mergers and acquisitions as well as laying-off employees have been used in order to gain competitive advantage and reduce costs of production. Strong environmental legislation is creating an extra burden to oil companies through high taxes and decommissioning requirements among other factors. In addition, investment in the industry has declined because of the unattractiveness of the industry and challenges presently being faced by oil companies. The UK government may have to consider relaxing its environmental legislation to make the industry more attractive and spur more investment.
In addition, the legislation may be modified to promote more research into innovative substitutes to oil that are more stable and have low carbon emission. Results from this research study illustrate that modifications in policy have already started to occur in response to the impact of low oil prices in the UK (such as the reduction of PRT and supplementary charge). There may also be more modifications in future if low prices persist and it is recommendable that such modification be in favour of renewable energy as oil has proven to be very volatile and less reliable to depend on a source of energy and revenue.
- To review and summarise the current UK Environmental legislation directly applicable to the oil industry.
- To research and analyse evidence that oil companies will alter, or have altered, their strategy towards environmental regulation compliance as a consequence of low crude oil prices.
- To make recommendations for the regulatory bodies and UK Government to ensure environmental compliance is maintained, whilst recognising such compliance cannot be allowed to develop into an onerous financial burden at the current level of crude oil prices.
- Review all available literature on the subject of compliance and standards towards environmental legislation by the UK oil industry.
- 11,000 words – 42 pages in length
- Excellent use of literature
- Excellent analysis of subject area
- Well written throughout
- Ideal for business and finance students
Rationale for the topic
2: Literature Review
Trends in oil prices
The UK’s position
The UK Regulatory Regime
Gas Emission reduction efforts in the UK
Global reactions to the fall in oil prices
Impact of Low Oil Prices on environmental regulation
Impact on policy on renewable energy
3: Research Methodology
Philosophy of Research
Data collection method
4: Findings and Discussion
Impact of Low Oil Prices across the Globe
Impact of Low Oil Prices in the UK
Impact on Legislation
5: Conclusion and Recommendations