The UK Regulation on the Activities of Oil and Gas Companies on the UK Continental Shelf - Dissertation Example

The paper “The UK Regulation on the Activities of Oil and Gas Companies on the UK Continental Shelf” is an excellent example of a business dissertation. Oil and gas production contributes immensely to the economy of the UK through the creation of job opportunities, supplying domestic fuels, and providing revenue to the government. The main basis for the exploration of oil and gas is the Continental Shelf, where offshore drilling and exploitation of the hydrocarbon is happening under the waters of the North Sea.

Markedly, the UK Continental Shelf (UKCS) is the largest producer of oil and gas in the country; however, the levels of production have immensely reduced since the peak periods of the late 1990s. Notably, the objective of this study was to examine the UK regulatory system that influences the activities of the companies in the UK. Additionally, the research explores how the regulations impact the output of the gas and oil production in addition to focusing on the future dimension of the production levels.

Methodologically, the research used a literature-based study that involved a comprehensive review of the secondary sources of information concerning the UK regulations and the activities of oil and gas firms. The overall process entailed planning, identification, selecting, and sorting of the different sources especially journals, books, government reports, and other credible websites. The research findings show that the production of oil and gas from the UKCS has reduced since 1999 and between 2013 and 2014, the production levels nearly flattened.

As such, the government of the UK opted to revamp the production through the establishment of the Oil and Gas Authority (OGA) to implement the Maximization of the Economic Recovery (MER) of petroleum. OGA has been given new powers and functions previously held by the DECC. It is necessary to note that DECC does not have a regimental influence on the Continental Shelf. Since 2015, after the establishment of OGA and MER, oil and gas production has started to increase, however, there is a potential of declining production of oil and gas in the future.

In conclusion, despite the decline in the oil and gas industry, the government has a leading role in the revitalization of production so as to maximize the recovery of economically recoverable oil and gas.