Oil and Gas
Looking in terms of dollar value, the Oil and Gas industry is the biggest sector in the world. The Oil and Gas sector is a global powerhouse creating millions of jobs worldwide and generating hundreds of billions of dollars globally each year. In some regions major NOC’s are so vital they contribute a significant amount towards national GDP.
What are the different oil and gas sectors?
The oil and gas industry consists out of three key areas: Upstream, Midstream and Downstream.
Upstream: Upstream is Exploration & Production (E&P). This is searching for natural gas fields or crude oil fields underwater (subsea) and underground (land), and drilling of exploration wells and drilling into established wells to recover oil and gas.
Midstream: Once the resources are recovered, it has to be transported to a refinery. Midstream entails the transportation, storage and processing of oil and gas. Often the oil gets transported to a completely different geographic region from where it get recovered. This can be done with tanker ships, pipelines or truck.
Downstream: In the final stage, downstream, raw materials are filtered. This means refining crude oil and purifying natural gas. The following products gets extracted; natural gas, diesel oil, petrol, gasoline, lubricants, kerosene, jet fuel, asphalt, heating oil, LPG (liquefied petroleum gas) as well as a number of other types of petrochemicals.
Oil and Gas industry outlook
The oil & gas sector has now recovered after the price collapse in 2013 and the major environmental disasters such as the Deepwater Horizon Golf Of Mexico Oil Spill in 2014.
Although the media tries to let you believe otherwise, but the world’s dependence on Oil and Gas is increasing as global economies and infrastructure continue to rely heavily on petroleum-based products, even amid a weakened global economy and shrinking availability of oil.