PROJECT PROPOSAL AND PLAN REGARDING OIL AS A SOURCE OF ENERGY IN THE U.K.

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PROJECTPROPOSAL AND PLAN REGARDING OIL AS A SOURCE OF ENERGY IN THE U.K.

Aim

Theaim of this project proposal will be to respond to queries regardingoil as a source of energy. Also, the study shall seek to address onvarious factors that are associated with oil importation.

Abstract

Thekey intentions of the study are to concentrate on oil energy.Consequently, the study will also seek to respond to alternatequeries related to the need to sustain oil energy. The study shallalso attempt to demonstrate the importance of oil energy as well aschallenges that do come with oil energy. Lastly, the project studyplan will show on the project time frame along with the projectedbudget that will be used to carry out the research. Although ashallow clarification the study shall also explain more on this.Thus, the technique used in conducting the study will comprise ofdescriptive figures along with the use of questionnaires.

Keywords

GDP:gross domestic product

U.N:United Nations.

U.K:United Kingdom

N.R:Nonrenewable energy

Tableof contents

Contents

Aim 2

Abstract 3

Keywords 4

Background Information 6

Introduction 6

1.3 The problem 8

1.4 Specific Objectives 8

2.0 Background to the problem 8

3.0 Research design 10

4.0 Anticipated results 10

5.0 Ethical Considerations 11

6.0 Work Plan 11

7.0 Budget 11

7.0 Project management technique 12

8.0 Conclusion 12

References 13

BackgroundInformationIntroduction

Oilenergy is anon renewable relic fuel, and it is created when heatalong with pressure condensed remains of prehistoric animals staysunder the sea for vast periods (eDF energy 2015). The majority of theoil produced presently has been created from ancient organisms whoseremnants settled at the base of the oceans. Oil energy is seen asbeing sufficient, and it is projected that it will be available up tothe year 2050. Therefore, oil energy is safe, conventional,inexpensive as well as clean.

Inthe modern world, oil shale is the ingredient to oil production aswell as it is employed as the energy source in both electrical andthermal power plants. Oil shale resources are found in vast sectionsof the globe along with nations although there is no economicalprocedure of removing oil from the oil shale rocks. The United Stateshas got the biggest oil shale in the Universe followed by China,Estonia along with Australia (Facts on Oil, Gas, and Energy sources2015).

Inaddressing the importance of oil as a source of energy, the studyestablished that the planet will probably remain using oil for thevast years to come. Thus, this is even under the most positivesuppositions concerning the development of alternate sources ofenergy. Most nations are affected by the growth in the oil marketwhichever as manufacturers or consumers. In 2008 oil offered about34% of the universe energy requirements and in the prospect, oil isprojected to progress on with enhancing the universe with a leadingenergy combination (Importance of Crude Oil 2010).

Inthe United Kingdom, nonrenewable energy accounts for most of theenergy and is mainly used in the electric power section. Thus, thenonrenewable energy reported an 86% of the average primary energy usein 2012. The need to limit greenhouse gas production has made the UKadministration to initiate some policies to upsurge the amount ofrenewable energy in the nation. Thus, these limitations do stress forrenewable to offer 30% of the average electricity generation by 2020while these plans comprise of hydropower as well as wind energy(Today in energy 2015).

PESTELANALYSIS

PESTELanalysis on the petroleum industry is highly essential in helping toidentify the external factors within the business environment thatcould be of influence to the organization.

PoliticalFactors

Theseare the factors of a political connotation that may influence the oilindustry. Oil is considered highly as a point of strategic influencein the social, economic, and politics. This is because of the greatinfluence this industry has on energy production, transport andindustrial production. A powerful influence on the production of oiland how high or low the prices of oil are is the highly volatilemiddle east where even a slight disturbance could cause significantchanges on oil factors in the UK.

TheEU austerity programs have brought down the need for oil, this isbecause of the declining social welfare and economic activities. Theuprising in the middle east and the Arab world have caused a lot ofhavoc and commotion on the oil industry and because of this issuethere has come a rise of many territorial disputes for natural gasreserves and oil.

EconomicFactors

Economicfactors are the influences that affect the supply and demand of oil.These are factors such as the price of oil on certain influentialexchange markets, the value of the known reserves. There are numerousindustries within the UK economy that are very influential in the oilmarket. They include the number of vehicles used by each person, orthe income of everyone that has a car. Also the road infrastructurewhich is very good in the country is a huge source of petroleumconsumption. The aviation industry is also a fast rising sector inthe UK and which represents a total of 6% of the oil being consumedin the market. The railway industry is also a major player when itcomes to the demand of oil. The petrol chemical industry alsorepresents a huge part of the oil demand whereas other industriesthat rely heavily on oil are agriculture, mining, and construction.The market share of oil energy in the year 2014 experienced a drasticdecline in the oil prices. The black gold dropped to almost 60% fromits initial peak of $106. The UK oil as well as gas growth areattributed to the fact that the industry gets large governmentsubsidiaries. Also, crude oil manufacturing is forecasted to decreasebetween 2010- 2015 through the electricity prices. The lowsensitivity oil implemented in 2010 means that there are acomparatively narrow CO2 emissions.

SocialFactors

Socialfactors include demography, ethnic structure, religion, familystructure, and so forth. The population of the UK is a high fuelconsuming market. Many people within the country use transport meansthat use fuel as the primary source of energy. Urbanization isanother major factor in the UK that could be of great influence inthe demand of oil. This is because urban population consumes a lot ofenergy resources in transportation electricity or petrochemicalproducts such as plastic bags. Petrol has a huge impact on socialwelfare. This is due to the fact that electricity, transport, and thepetro chemical industry are of great impact to the people of theUnited Kingdom. In addition, the population is getting more andsmarter about oil and its detriment to the environment.

TechnologicalFactors

Onthe technological forecast, the UK is organizing for a deepdecarbonization of its energy schemes. The nation plans to usegreenhouse emanations from 1990 to 2027.The UK has been forced toimplement legal policies that are projected to aid the stakeholdersand oil industry its operations. The energy market risk analysis inthe UK regarding oil and gas saw an increase in the costs in thesecond half of the year. Thus, this greatly led to a heavy and slumpin the oil market. Technological changes such the use of electrictrains and electric vehicles are a major influence on how UK oilconsumers are and will be consuming oil currently and in future

EnvironmentalFactors

Theseare factors that constitute the geographical position, the landscapeand the natural fauna. The main factor here in reference to the UKand oil as a source of energy we will basically take a good look atpollution. Pollution comes from the emission of the after use of oilfrom airplanes, vehicles and factories or other petrol products.These products have a huge influence on the climate and laws andregulations are coming up so as to help in protecting theenvironment.

LegalFactors

Thisfactors influence exploration, refining, transport andcommercialization of oil. Factors international trade agreements,taxation and subsidies, consumer protection, competition and evenlaws on environment and technology are highly influential in oilbeing a source of energy in the UK as they influence how the fuel isconsumed. The United Kingdom oil and Gas law and regulations from theEuropean Union are such factors.

Thestakeholder commitments like B.P (British Petroleum) can influencethe administration along with policy makers in the oil industry inthe U.K. The political repercussions are attributed to the rise aswell as challenges in the supply problems thus, an example is whereBritish oil was overcharged. The study established that Oilproduction has led to environment pollutions while the socialimplications of oil energy are attributed to the falling oil pricesleads to lower inflation.

1.3The problem

Thestudy’s main objective is to determine oil energy basing on theyears between 2015, 2020 as well as 2025 in the U.K. Thus thedeliverable will be able to address on what needs to be investigatedconcerning oil energy, what needs to be done as a team. Lastly, thedeliverable will address on what needs to be done concerning oilenergy. Concerning the variables as well as their connection therewill be correlation between the years in oil energy and the essentialquestions concerning oil energy would be made. Thus, this is beforecoming up with any conclusion therefore, the correlation in thisstudy will be linear.

1.4Specific Objectives

  • To determine on the forecast on energy between 2015, 2020 and 2025 petroleum market in the U.K.

  • To determine the various investigations related to oil energy in the U.K.

  • To determine the issues that needs to be resolved concerning oil energy in the U.K.

2.0Background to the problem

Theproblem of the study is vital since it will be able to comprehend onalternate issues connected to oil energy. Also, the problem will beable to search for clarifications to the problems that come with oilenergy. Thus, the conclusions obtained from these challenges will aidin resolving the alternate queries that the study will address.

Concerningthe studies that have been conducted relating to the same, they docomprise of the nonrenewable energy like coal as well as natural gas.Therefore, a resolute that nonrenewable source of energy is a type ofenergy that can be extracted from the natural resources that cannotbe continually refilled. Nonrenewable technological advancements docomprise of technologies that employ a pair of renewable sources ofenergy.

Thestudies were able to determine that nonrenewable source of energy arelimited and if they are permanently used they will end up runningout. Basing on a recent study concerning “the environmental bruntof exploring more American crude oil” It was clear that. Onrealistic stages, the economic, as well as ecological impactsconcerning crude oil in the United States, was not well documented(Ashley, M &amp Cassady, A 2015). Through this study, it is definitethat oil energy has got a vast importance to the world although mostpeople do not understand the implications of not having oil energy.Projections on oil as well as gas energy production in the U.Kaccounted for tax revenues exceeding 8.7 billion (Oil Gas Industry Fiscal Forum First Meeting 2015).

Onthe future proposals concerning oil, energy is the production ofclean energy that can be used and not damage the environment.According to the UN talks held in Lima, it was proposed that oilenergy should be employed but only if the nations would guarantee“complete zero emanation by 2050.” The Bank of England is alsoreviewing the risks related to oil energy companies as well astactics to make wealthy nations allocate 1% of GDP annually to aidemerging nations in handling global warming (CLARK P 2014). Theconclusions that were obtained from the study do include the ideathat oil (petroleum) energy is the most used type of energy. Innations like the U.K policies have been established to oversee theuse of nonrenewal energy like gas as well as oil is contained between2015 and 2025.

3.0Research design

Thestudy will be conducted on the key subject of research as well as inattempting to respond to queries regarding the research study. Thus,the study will be restricted across this authority. Therefore, thisis a subject relating to oil energy basing on the years between 2015,2020 as well as 2025 in the U.K. Consequently, the data that will begathered will need to attend to these problems along withestablishing solutions to the alternate queries that the main topicis attempting to address.

Regardingthe technique that will be employed in gathering data do comprise ofdescriptive statics because it will be able to determine oil energyin the U.K. thus, this is basing on the alternate years.

4.0Anticipated results

Theanticipated results project that the prices of oil energy will godown due to the increase in the number of nations that are producingoil petroleum. The anticipated results will comprise of the methodsthrough which oil energy in the U.K will be forecasted between 2015,2020 and 2025.It is clear that the period of these years will see arise in the use of petroleum energy.

Oilas well as gas offers more that 70% of the U.K’s average mainenergy. It is also anticipated in the year 2030 a great percentage ofthe UK’s entire energy will still come from oil along with gas.Thus, this is basing on the Department of Energy as well Climatechange.UK production climaxed in 1999 but became stable at 1.42million barrels in 2014 there it is expected that there could be upto 23 million barrels of gas along with oil to be recovered.

Electricityproduction, transport as well as reheating one another account forapproximately one-third of the UK’s main energy demand. Therefore,the oil consuming oil along with gas is crucial for carbon lesseningtargets. The need to come up with ways through which the petroleumenergy can be preserved for future use is of an essence in the study.

5.0Ethical Considerations

Therespondents in the research study will be assured of their admissionssince the information along with response issued will be classified.Before the study the respondents will be briefed adequately thus, noperson will be required for undertaking the study.

Theresearch study will depend on the sincerity of the respondent’sfeedback in answering the queries. The impartial information will notbe taken into consideration because this will be defined asmisguiding to the study. In the case of any alterations to theresearch study as well as questionnaires, the respondents willinstantly be alerted.

6.0Work plan

Time (Week)

Activity

1

2

3

4

5

6

7

8

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10

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13

Project Proposal and time

Forecast, assumptions and key findings

Delivery of forecast assumption

Overall time period

7.0Budget

Item

Price in £

Transport for moving to the places of research and discussion

£ 300

Typing, printing as well as compiling of the proposal

£ 500

Lunch

£ 200

Stationery

£ 250

Miscellaneous

£ 150

Total

£ 1400

7.0Project management technique

Amongthe project management techniques that will be applied on the studydo comprise of instituting the initiation project team, establishinga connection with the client. Initiating the instigation projectplan, establishing administration processes as well as initiating theproject management whereby it will focus on the gathering of data.

8.0Conclusion

Theresearch study will be able to determine oil energy basing on theyears between 2015, 2020 as well as 2025 in the U.K. Also, it isclear that oil energy is the most used type of energy in the U.Kwhere it is applied to transportation along with electricityproduction. Therefore, the need to understand the oil energy trendsin the projected years in of essence.

References

Ashley,M &amp Cassady, A 2015.The Ecological Crash of Exporting MoreAmerican Crude Oil. Available athttps://www.americanprogress.org/issues/green/news/2015/08/21/119756/the-enviromental-impacts-of-exporting-more-american-crude-oil/[Accessed 23rdOctober 2015].

CLARKP 2014. UN Environment talks call future of energy majors intoqueries. Available athttps://next.ft.com/content/c542393c-7dbf-11e4-bb0a-00144feabcd0[Accessed 23rd October 2015].

eDFenergy. Available at https://www.edfenergy.com/energyfuture/oil[Accessed 23rd October 2015].

Factson Oil, Gas and Energy sources. Available athttp://www.minimgoilgasjobs.com.au/oil-gas-energy/all-you-need-kno-about-the-oil—gas-sector/quick-facts-on-oil,-gas-and-energy-sources.aspx[Accessed 23rdOctober 2015].

Importanceof Crude Oil. Available athttp://www.ncran.gc.ca/energy/publications/markets/6505[Accessed 23rd October 2015].

Todayin energy. Available athttp://www.eia.gov/todayinenergy/detail.cfm?id=16971[Accessed 23rdOctober 2015].