Quantifying the Impact of the Drop in Oil on the Future Manpower Needs of the UK Oil and Gas
Industry
This dissertation project should conform the following Format:
Page Number
Table of contents or Figures
1.Introduction Chapter
i) Aim of the project
ii) 3 or 4 points Objectives of the project.
- Abstract
- Literature Review Chapter
- Methodology ( Findings, Discussion, Analysis, Research questions) Chapter
5.Recommendations Chapter
THE IMPACTS OF FALL IN OIL AND GAS PRICES IN THE UK WORKFORCES IN GAS AND OIL INDUSTRY.2
- Conclusion
- Reference
- Introduction Chapter
The United Kingdom dramatic drop in the oil and gas prices for the past decades has
significant effects on future workforce needs of the UK Gas and Oil industry. The oil and gas
production and prices instability hurt the future workforce needs of the Gas and Oil industry gas
as the consistent drop create an unsuitable environment for future workforce drivers based on
wastes, delays, deficits, and inefficiency. Quantifying the impacts of the decline in gas and oil in
the future workforce needs of the United Kingdom to enable formulation and implementation of
corrective and mitigation measures that minimizes or manage the Oil and gas drops (Millard and
Shakir, 2013.p. 41).
The fall in the gas and oil prices in contemporary world have significant positive impact
on employment on other economy industries that are dependent on oil and gas products due to
increased economic activities but with a corresponding decrease in employment in oil and gas
sector. Reduced productivity and profitability among the United Kingdom oil and gas industry
THE IMPACTS OF FALL IN OIL AND GAS PRICES IN THE UK WORKFORCES IN GAS AND OIL INDUSTRY.3
from a decline in oil and gas prices has decreased the demand for capital and workforce causing
a reduction in investment returns and wages. Higher wages in other sectors has attracted more
workforce compared to the gas and oil industry and unemployment rise in oil and gas industry
(Millard and Shakir, 2013.p. 27). Consequently, since oil and gas price trends for years has
remained uncertain, the scale of an uncertainty of the future the workforce and other micro and
macroeconomic impacts to the gas and oil industries in the UK has widened with time.
Different case study scenario and United Kingdom economy model to quantify the
impacts of the dramatic drop in prices of oil and gas on the future workforce needs of the United
Kingdom Oil and Gas Industry. Primarily, the dynamic Computable General Equilibrium (CGE)
model serves as a guiding tool in addressing the study objectives through assessing the impacts
of future workforce changes on oil and gas prices decline in the United Kingdom (Millard and
Shakir, 2013.p. 34). A three projected oil and gas price scenario based on disparity both
magnitude and persistence of oil and gas prices shock against 2016 baseline has dominantly been
used for research studies. However, three projected oil and gas price scenario have been
structured to provide the statistical analysis of the past oil and gas prices trends and the United
Kingdom trade position in oil and gas industry to provide generate study reliable and valid
research findings and the results. Scenario 1: Oil and gas price set at low level ($50/barrel),
Scenario 2: Oil and gas price in 2020 increases gradually to $73/barrel. Scenario 3: Gas and oil
price in 2020 gradually to$108/barrel. The base line is assumed consistent with the workforce
growth projection for the gas and oil industry published in July 2015.
i) Aim of the project
The project aim is to quantify the impacts of the dramatic drop in prices of oil and gas on the
future workforce needs of the United Kingdom Oil and Gas Industry. The dynamic Computable
THE IMPACTS OF FALL IN OIL AND GAS PRICES IN THE UK WORKFORCES IN GAS AND OIL INDUSTRY.4
General Equilibrium (CGE) model application in quantifying the impacts of dramatic fall in oil
and gas prices on the future workforce needs of the UK Oil and Gas Industry is an appropriate
strategy. The method uses Oil and gas price scenarios to measure the impacts oil and gas prices
trends effects on the future UK workforce relative to the baseline.
ii) 3 Objectives of the project
• To demonstrate how the dramatic and unexpected drop in gas and oil prices affected the
future workforce of the United Kingdom Oil and Gas Industry.
• To describe how a change in the gas and oil prices affect the United Kingdom trade balance
and government revenues.
• To identify the risks and solutions to maintain the future workforce economic balance and
needs for the United Kingdom Oil and Gas industry,
To generate a conclusion and recommendation that demonstrate the future studies,
limitations and steps taken by the United Kingdom to regulate and manage the impacts of
the dramatic drop in oil and gas prices and their effects on the future workforce, balance
of payments, customer consumption, inflation and production.
- References
Allan, G., Hanley, N., McGregor, P.G., Swales, J.K. and Turner, K., 2006. The macroeconomic
rebound effect and the UK economy. Final report to DEFRA.
Millard, S. and Shakir, T., 2013. Oil shocks and the UK economy: the changing nature of shocks
and impact over time.
