Operation and Competition Situation of UK Oil & Gas Industry Essay

Operation and Competition Situation of UK Oil & Gas Industry - Essay ExampleThe study precept for selecting this industry however is that, regardless of its important place in UKs economy, growth in the sector has not been steady in the last few years as seen in judge 1 below. The paper therefore tries to critique the cause and finds solutions from the perspective of selected companies.BP was selected to be a general means of larger oil and atom smasher companies whose daily production is beyond 1,000,000 place a day. On the whole, the rationale behind the plectrum of BP is the diversity and differences it offers in its business and marketing approaches as a large company.The selection of Cairn was for the reason of the fact that the company gave a perfect representation of smaller oil and gas companies whose daily production is below 35,000 barrels a day. The company also uses a focus strategical option, which makes it possible to compare this strategic option with other com panies to determine its effects.As depicted in direct 2, it will be seen that in terms of production units, it can be said that the selection of necropsy have been made based on medium market size with production above 35,000 barrels but less than 100,000 barrels. This is an important rationale to pursue, given the fact that the individual growth of these companies will beat out to be collective growth of the oil and gas industry in the UK (Ferguson, 2004).Gross advance margin This is a type of profitableness financial ratio that measures financial health by estimating symmetry of money left over from the companys revenues after accounting for the cost of goods sold (COGS) (Weston, 1990). This gain profit margin is selected to determine how financially healthy the companies are, which isNet profit margin This is another profitability measure that determines how much each pound earned by the company is turned into profits (Houston and Brigham, 2009). This is selected in the st udy to