Impact to Energy Companies
- Employees – How would restrictions on free movement of people between the U.K. and EU impact your company? Similarly, what would be the impact of likely increased administrative costs if visas or permits are required? This issue is particularly relevant to oil and gas companies operating out of the North Sea, which traditionally move employees between countries on a regular basis.
- Free movement of goods and capital – Does your business involve moving goods and capital between EU member states? If so, it will be important to consider the impact that tariffs or other restrictions on free movement of goods and capital would have on the functioning of your company. In the energy sector, this will impact the trade and movement of crude oil and gas, as well as the ways that international companies can move capital between entities.
- Trade arrangements – To what degree does your company move goods and capital, or provide services, to countries with which the EU has a trade agreement? If the U.K. does not continue to be party to these international trade agreements, new arrangements will need to be negotiated between the U.K. and individual countries, meaning, in the interim, it is not clear what the terms of any future trade arrangements will look like or how this will impact the movement and sale of crude oil and gas.
- Infrastructure projects – Is your company dependent on, or eligible for, EU funding in relation to any current or upcoming infrastructure projects? If so, you will need to consider the impact any loss or reduction in EU funding would have on the viability of projects. If the U.K. does not remain part of the internal energy market, which creates an internal EU market for gas and electricity, a substantial number of energy infrastructure projects may no longer be eligible for EU funding.
- EU Regulations – What aspects of your business are currently impacted by EU regulations? Particularly relevant to the oil and gas sector are those relating to employment and the environment.
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