Wednesday, 21 December 2016
Impact of Brexit on Oil Industry by Philip Moufarrige.
When it comes to the oil industry, it is quite difficult and somewhat exciting time for the UK over last few months. There has come up lots of economic uncertainty in the country. Its outcome was very shocking for the whole nation, everybody is much worried and tensed. They are also assured about their nearness to the political and economic uncertainty. With such changes in the economy of the country comes up the question about the impact of the referendum on the UK gas and oil industry. Philip Moufarrige has contributed a lot in the oil and gas industry.
Effect of Brexit on oil and gas industry:
The effect of pound declined dramatically over a period of time. This shows that it is trying to recover itself from the tome of the shocking Brexit. The rates of oils are going down drastically and thus we may see the oil companies coming to an end. But the fall in the price of oil was not due to the Brexit, rather it was due to the strengthening of US dollar and something more important from this is the economy of the nation and its demand and supply system.
The North Sea oil and gas industry is also facing the tremendous problem and may shut down in some time. It seems it is quite uncertain to solve this problem with the advancing time. Philip Moufarrige still believes that sooner or later a time will come when things will settle down.
The North Sea oil and gas industry:
Philip Moufarrige has a lot o say on this. It has also faced a real tough time in recent days and it has highly increased the optional cost and the price of the oil keeps fluctuating. But, unfortunately, all these issues will be affected much more bu Brexit. It has faced lots of decommissioning in recent days. Because of the Brexit, the oil and gas companies are found to be less willing to invest in the North Sea oil and gas industry. The decommissioning is increasing at a rapid pace.
The matter does not even calm down here, there is lot more issue related to it. It may still be able to benefit from this challenging situation. Assumptions are made that if the post does not manage to gain its stability, it could also help reducing some costs in the North Sea oil and gas industry. The workers may get some relaxations too.
As the above write up explains the Brexit denied talking about the second referendum for an independent Scotland. These kinds of cases have added much uncertainty to the future of the North Sea oil and gas industry. The matter is quite debatable when it comes to the drop in price in the entire market.
A split from the UK would also participate in the debate based on this. There are numerous oil reserves over there. This independence would most probably result in the division of the reserves. In will be allocated in the same way as the fishing rights are given to people. Scotland will be getting the majority of the annual natural oil production and the production of natural gas.
Philip Moufarrige has given a new phase to the oil and natural gas industry. It is quite undoubtedly to say that the Brexit have caused much havoc in the UK and it is quite obvious because of the ambiguity which has emerged in the recent days. In recent days it turns out to be very interesting to see how the industry has evolved in response to the emerging changes these days. It is high time to say goodbye to the UK too.