Strategic Management of Uk Oil and Gas Industry
STRATEGIC MANAGEMENT OF ANALYSIS OF UK OIL AND GAS SECTOR
1.0 INTRODUCTION
1.1 UK OIL SECTOR OVERVIEW
The oil and gas industry is a large Industry and contributes a critical role in driving the global economy (Sam’s et. al., 2006).The upstream section of the Industry is involved with the first stage of exploration and production, the midstream section involves the transportation of crude through pipelines, ships e.t.c to the refineries. The downstream is involved with refining and process of the oil and gas products. The distribution and marketing of crude is then done for end user consumption. For purpose of this report the analysis shall be on oil and gas operations with emphasis in the United Kingdom. According to (Oil and gas UK, the voice of the offshore Industry), the country has over 99% of the oil and gas production occurring under the seas surrounding the continental shelf. With a network of 14,000km lay down of pipeline connection and fitting for effective distribution and transformation of crude oil products which links close to 107 oil platforms which connects a large number of gas platforms and subsea installations. The total number of fields producing within the region is about 383 and 17 new ones came on stream in 2008. 3970 exploration wells and appraisal wells have also been drilled to further determine the reservoir extent and explore for new discoveries. £1.4 billion was spent in 2008 drilling exploration wells and appraisal wells which had 109 wells producing delivering 300-400MMboe. The United kingdom oil and gas operations provides a delivering solution to prolong the lifespan and efficiency of the UKCS. In 2004 UK was the fifth largest producer of offshore gas (Spends & Trends 2006). However decline has set in top fields in the UK, where oil and gas are seen to however pass their peaks (Spends &Trends 2007).
1.1 AIM OF REPORT:
This report analysis the oil and gas industry and focuses on UK Industry operations. The report is structured
1.0 INTRODUCTION
1.1 UK OIL SECTOR OVERVIEW
The oil and gas industry is a large Industry and contributes a critical role in driving the global economy (Sam’s et. al., 2006).The upstream section of the Industry is involved with the first stage of exploration and production, the midstream section involves the transportation of crude through pipelines, ships e.t.c to the refineries. The downstream is involved with refining and process of the oil and gas products. The distribution and marketing of crude is then done for end user consumption. For purpose of this report the analysis shall be on oil and gas operations with emphasis in the United Kingdom. According to (Oil and gas UK, the voice of the offshore Industry), the country has over 99% of the oil and gas production occurring under the seas surrounding the continental shelf. With a network of 14,000km lay down of pipeline connection and fitting for effective distribution and transformation of crude oil products which links close to 107 oil platforms which connects a large number of gas platforms and subsea installations. The total number of fields producing within the region is about 383 and 17 new ones came on stream in 2008. 3970 exploration wells and appraisal wells have also been drilled to further determine the reservoir extent and explore for new discoveries. £1.4 billion was spent in 2008 drilling exploration wells and appraisal wells which had 109 wells producing delivering 300-400MMboe. The United kingdom oil and gas operations provides a delivering solution to prolong the lifespan and efficiency of the UKCS. In 2004 UK was the fifth largest producer of offshore gas (Spends & Trends 2006). However decline has set in top fields in the UK, where oil and gas are seen to however pass their peaks (Spends &Trends 2007).
1.1 AIM OF REPORT:
This report analysis the oil and gas industry and focuses on UK Industry operations. The report is structured
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