Quality Assurance & Control in the Procurement Chain (Oil & Gas Dissertation

Quality Assurance & Control in the Procurement Chain (Oil & Gas Industry) - Dissertation Example This concern can be stated as quite vital for the oil and gas companies as the products offered by the industry is termed to be inelastic providing minimum opportunity to the customers to switch to substitute products (Slocum, 2006). The research study proposed in this paper shall emphasise on this aspect of quality assurance and control measures as considered by the oil and gas companies. Further description of this paper will thereby focus on identifying the particulars of the research process intended to be executed. In other words, a comprehensive and detailed outline of the research planning shall be provided in this paper with due consideration to the research problem, research questions and the research methodology to be followed in the study. II. Literature Review Various measures had been considered in concern to the aspect of quality assurance and control in the oil and gas companies. These include environmental regulations and procurement rules imposed by the government wi th the intention to standardise the operations of the industry players. ... Companies should also intend maintaining a community standard in their operations as directed in the programme (Gao, 1998). In the current day context, gas and oil industry plays a significant role for an economy. The industry nearly contributed 24% to the total GDP earning of the UK in 2008. The industry also witnessed a significant rise in the investors’ interest. This in turn significantly enhanced the profitability of major industry players with inelastic consumer demand and increased financial strength (UK National Statistics, 2009). However, from an in-depth perspective it can be observed that the taxation charges were increased in the recent years. To be illustrated, the budget planned in 2011 stated a hike in revenue tax charges from 20% in the prior fiscal year, i.e. 2010-2011, to 32% in the current fiscal year, i.e. 2011-2012. It is worth mentioning that the UK oil and gas industry was recognised to be one of the most stable industries in comparison to the energy ind ustries of other economies. With strong barriers to the price hike in the industry, the UK government also focussed on relatively secure tax regimes that provided the investors in the industry with certainty assurance (Energy and Climate Change Committee Inquiry, 2011). On the similar context, it can be stated that with strict regulatory barriers the oil and gas industry in the UK is likely to face various challenges in maintaining its profit. According to the report forwarded by Energy and Climate Change Committee (2011), there are various challenges likely to be faced by the oil and gas industry in the economy due to the increase in tax charges. For instance, the industry is likely to witness decelerated investment operations that in turn shall