Oil and Gas Industries of Uk Their Business Expansion

Question: Describe about the Oil and Gas Industries of Uk for Their Business Expansion? Answer: Introduction: This particular study provides an in-depth understanding of the development in oil and gas retail sectors in UK. In the year 2012, the prime minister of UK had stated in an occasion that UK trade and investment (UKTI) is going spread their hands for the development of petroleum retail sectors in UK in order to expand their wings in the international field (Localinvestuk.com. 2016). Several petroleum and retail companies are existing in UK like BG Group, Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas and so many. Somehow, they are not able to provide effective service to the customers due to present structure. Apart from UKTI, the department of business innovations and skills are also associated with this particular plan and project in order to provide immense support to the retail industry of UK so that they can raise their head widely. Unfortunately, it has been noticed that several factors have affected the structure of present petroleum retail sectors in UK as a result of which they are not their entire process of business has been affected. Therefore, this particular study has focused to highlight those factors based on which the petroleum retail sectors of UK have to face immense difficulties in order to maintain an effective business process. Moreover, this particular assignment has also focused to point out the expected technological changes that have been decided to render in the petroleum retail industry (Annett and Piech 2011). In addition, the UK trade and investment has decided to explore a change in the supply chain management within the UK petroleum retail industry. In between 1970 and 2016, they have rendered several changes in the retail markets. Discussing critically the implications of recent trends and changes within the supply chain of UK petroleum retail market between 1970 to 2016 After taking initiatives by business innovations and skills, the petroleum retail industries have rendered significant changes in their market, especially in the supply chain management. Different companies in UK like BG Group, Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas have implemented several changes within their business process in between 1970 to 2016 (Applbaum and Anatol 2010). The key changes that had been taken place in the petroleum retail industry are follows: Provident financial service has been declined from three thousand five hundred from 1970 to nine thousand until 2011. It is undoubtedly a major step taken by the business innovation and skill. The supply chain has been renovated in last two decades. The relation between the service providers and the service users has been made liberal in order to avoid communication gap. For an example, the service providers in earlier did not intend to communication with the service users effectively before supplying the product. This particular procedure has been changed in order to draw the attention of the users. Barry and Sillitoe (2011) stated that, supply chain management with the petroleum industries of UK, has stressed on the team management project rather than individual work. For an example, companies like BG Group and Dana Petroleum liked to give emphasize on the individual performance in order to deliver the product to the customers. Somehow, the head of supply chain management of those companies did not feel that this strategy has provided a positive response; rather it is possessed with some negative outcomes. Information gap rose in between one particular employee to another. Ultimately, the customers have to suffer immensely because of this. In order to avoid these circumstances, the management team had decided to emphasize on teamwork. The team members of supply chain management have to make an effective communication to each other for exchanging necessary information (Bruzzone and Longo 2014). Dana Petroleum has received a good result after implementing this particular process. They are now able to provide quality service to the customers within time. One of the major implementations in supply chain management in the petroleum industries is providing effective training and guidance to the employees. In order to give an effective supply to the customers, the employees supply chain management need necessary training and guidance in this particular field Dul et al. (2008). At the early stage, petroleum companies intended to recruit untrained employees in the department of supply chain management. As a result, they had to face immense difficulties in order to provide effective supply of their product to the customers. Free (2008) stated that Falkland Oil and Gas has started the process of training from the year 2001. As per the report of Business innovations and Skill, Falkland Oil and Gas has achieved a good result. Before coming to this particular field, employees are well aware of the product service system. As a result, customers are getting the service of their product within time. Analyzing the factors that affect the present size and structure of current oil and gas retail sectors emphasizing the impact of rising price oil Currently, it has been observed that several factors in the current petroleum industry have influenced immensely in order to maintain their business successfully (Giri and Maiti 2013). The factors that influence the structure of petroleum retail sectors are as follows: Market sectors: Except European countries, the other countries like US also play a major role for the development of petroleum industry in UK. The growth of liquefied natural gas has a greater impact to run an organization successfully. For an example, the various companies of UK like BG Group, Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas have to import LNG in order to make a balance between supply and demand. As a result, the companies have to raise their selling cost that affects the customers attention fervently. On the other hand, the growth of LNG in US is comparatively wide than UK (Hessels et al. 2009). As a result, they do not have to face enough challenges in order to create a market demand especially in the retail sector. Regulatory as well as political factors: As mentioned already, if the petroleum and gas companies of UK can make a balance within the product price and the service of product, it helps immensely to meet the target audience successfully. For an example, Dana Petroleum has decided to reduce the cost of their product by maintaining a profit. This is one kind of business strategy in order to generate a market demand (Mcconnell 2010). Unfortunately, Dana Petroleum has faced major difficulties in order to maintain the image of their organization. The management team has not made an effective plan before reducing the product cost. After the reduction of cost, the company has to face innumerable challenges in order to make a balance between supply and demand. It has made a negative impact on the image of the organization. Other factors: Other factors that affect the structure of petroleum retail industries include internal crisis, communication barriers among the employees, competitors threat in the market industry, effective strategy of the competitors and so many. Diversity management is systematically implemented in maximum organizations of UK. Petroleum companies are not exceptional to that. BG Group, Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas intends to entertain different kinds of employees within their business process. Employees are from different culture and background. As a result, Opinion differs with people of different culture and background. Different perception and opinion affect the internal environment of the organization (Rees 2010). If the maladjustment with the people of different opinion becomes the cause affecting internal environment, communication barrier is the effect of this. More specifically, if the employees cannot be able to make any unanimous decision, communication gap would raise in between them. They would not exchange relevant information with each other regarding the customer service. It affects on the structure as well as on the image of the organization (Rongen et al. 2014). Figure 1: Factors that affect the structures of oil and gas industries in UK (Source: Mcconnell 2010) Evaluating the potential of technological changes on the energy retailing industry on the next decade In order to overcome this situation, UK petroleum retail industries have decided to render relevant technological changes in order to provide effective service to the customers. With the advancement of technology, the companies like Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas would be able to expand their business more effectively beyond going any geographical boundary (Sapsanguanboon 2015). In next two years, the technological changes that are going to take place inside the organizations are as follows: Plunger Lift System: With the help of plunger lift system, the blockages that have been created through the accumulation of liquids from well can be removed. Dry Seal System: Dry seal system helps to mitigate methane leakage by removing moisture from the liquefied natural gas. Desiccant Dehydrators: At the time of using special water absorbing salt, this particular technology can be used. It helps to release the methane leakage from the liquefied petroleum gas. Compressor Maintenance: The primary responsibility of compressor maintenance is to control the leakage system from the reciprocating compressors (Swarnalatha and Sureshkrishna 2012). This particular technology has been used at the time of processing of natural gas and at the time of transportation system. Maintenance on pipeline: With the help of this particular technology, methane can be captured when at the time of flowing through this pipeline. Recovery Units in Vapor: Vapor recovery units help to capture methane that has been leaked from the oil while storing in the tank. Leak Monitoring and Repair: Leak monitoring primarily helps to detect methane leakage. It captures those leaked methane that remains complete colorless. With the help of advanced monitoring equipment the leakages of methane can be captured from various locations. Therefore, by implementing those technologies, the companies would be able to provide service that is more effective to the customers. It would automatically help to enhance the business process in the petroleum retail industry even in the international field. (Willett 2014) stated that most of the US oil and gas companies like Aloha Petroleum, American Shale Oil, ARCO have already implemented those technologies and they have positive feedback from the customers. As stated by Wilson (2011) advancement of technology is not required only for providing effective service to the customers but for the sales promotion of the company as well. The popularity of internet has already spread its wide wings throughout the World. In next two years, it is going to be more effective even than the print media as well as electronic media. Different oil and gas companies of UK like Dana Petroleum, Eland Oil and Gas, Falkland Oil and Gas has establish a public forum in their official website in order to collect direct customer response. While visiting the website, the customers can give a feedback in this particular forum mentioning their satisfaction or dissatisfaction with the customer service system of that particular company. In coming years, petroleum companies are going to use technology that is more advanced. They are going to get an opportunity to make a conversation with the service providers directly through video conference. As a result, customers will get more immediate reply than even before as opined by Wu (2013). Consequently, complains from the customers are expected to be reduced. Figure 2: Different use of technologies that can change the energy of retail industry (Source: Wilson 2011) Conclusion: The entire study has provided a detailed scenario of the oil and gas industries of UK regarding their business expansion. In has been noticed that petroleum industries of UK have been planned to be innovated by the initiatives of UK trade and investment (UKTI) and Business innovations and skills. These two organizations had discovered that the business structure UK petroleum industries have been affected severely due to some unavoidable circumstances. The factors include market sector, drawback on behalf of the regulatory bodies, and other. Among the other factors, the internal problems relating to the employees at the workplace have been highlighted specifically. For an example, as already stated, implementation of diversity management within the company has been highlighted. Communication barriers take place among the employees within the organization because of the opinion of diverse people about a particular business matter. Moreover, this assignment has highlighted the expected technological changes that the petroleum companies of UK are going to implement in their organization in order to provide service that is more effective to the customers. In addition, this study has also highlighted at the end how advanced technology has become one of the major tools for the sales promotion for reaching the target audience directly. Reference List: Localinvestuk.com. 2016. UKTI - Local Investment Showcase. 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