The Brexit Effect- Oil and Gas Industry
The UK has had a significant role in EU regulatory affairs, with it chairing agencies such as Agency for the Co-operation of the Energy Regulators (ACER) and the Council for European Energy Regulators (CEER) for a number of years. Allowing the UK to have a hand in EU policy and to be able to influence regulatory developments. Brexit would remove UK from this positions and agencies and thus lose key influence. However this might not be too disastrous for the UK, as the UK is seen as a leader in Europe in its approach to the industry and many other countries try to follow the UK model. Good relationship between the UK and European countries will most probably continue.
The UK oil and gas industry is reliant on the employment of people and provision of professional services abroad. Depending on negotiations, there may be a hamper on immigration and recruitment of professional services and labour abroad. Effecting the efficiency of the operation of the industry. However there is a positive, in that additional training schemes will be required. And thus an opportunity for creation of new companies to provide these resources.
A lot of the issues presented above depend on the type of deal reached, with particular emphasis on hard Brexit, thus a lot of what is discussed may not be as profound in the future. Overall however compared to my previous article on the effects on the pharmaceutical industry, it does not provide as complicated effects as to the pharmaceutical industry which was so heavily intertwined in EU regulations. The UK has been seen as the leader in Europe for its attitude towards the oil market and I believe post Brexit it will continue to do so.