The Oil and Gas Sector of the UK - Research Paper Example

The paper 'The Oil and Gas Sector of the UK' is a wonderful example of a finance and accounting research paper. The oil and gas industry is one of the most volatile markets in the corporate segment. Apart from their big influence in the public and private sector operations, they are also boosting the infrastructural growth happening worldwide. In the UK, the oil and gas sector remains the largest industrial investor and the highest taxpayer. The growth of the UK's oil and gas sector has increased continuously with the growth in the offshore network of oil and gas platforms.

With 181 gas platforms and 107 oil platforms connected with a 14000 km pipeline network and other 383 offshore fields, the UK is one of the European region's biggest oil exporters (Cadle and Paul, 2010). However, the UK oil and gas sector's production capability has decreased over the years, whereas the consumption rate has increased. The competition among the oil and gas producing firms has also intensified as the UK started importing oil and gas from Russia. BP and BG undoubtedly remain the largest shareholder in the concerned industry, followed by Premier and Cairn (Charitou, Elfani, and Lois, 2010).

Moreover, the global financial meltdown has also impacted the above-mentioned firms' operations as Government funding was reduced and redirected towards bringing stability to the nation's economic condition. Considering the cutthroat competition in the oil and gas sector, the study aims to evaluate BP, Premier, and Cairns' existing operating practices. Crude oil is the largest segment of the UK oil and gas industry has been considered for evaluating the competition among the selected firms. The reverse relationship between the increase in the number of offshore platforms and the falling demand in the market is an interesting aspect to be analyzed in the UK crude oil segment.

The research aims to identify the changes in BP, Premier, and Cairns' business and operational practices in the context of the ongoing competition and evaluate the most sustainable firm based on the environmental scenario of the industry.